Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)(1)Compute the break-even point2400000units(2)Compute the break-even point$120000eTextbook and MediaCompute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25and final answers to 0 decimal places, e.g. 25%.)Contribution margin ratio0.25Margin of safety ratio0.4eTextbook and MediaDetermine the sales dollars required to earn net income of $ 190,000. (Round answer to 0 decimal places, e.g. 1,225.)Required sales dollars$1960000eTextbook and Media%24 Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle toretailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs.Sales$ 2,000,000Selling expenses-variable$ 109.000Direct materials550,000Selling expenses-fixed58.000Direct labor400,000Administrative expenses-variable21.000Manufacturing overhead-variable420.000Administrative expenses-fixed52,000Manufacturing overhead-fixed190,000Prepare a CVP income statement for 2020 based on management's estimates.CARLA VISTA cOMPANYCVP Income Statement (Estimated)For the Year Ending December 31, 2020Sales2000000Variable ExpensesSelling Expenses52000Administrative Expenses v300000Net Income/(Loss)$200000eTextbook and MediaCalculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)Variable cost per bottle0.375

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Answered: Carla Vista Company bottles and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Firebyrd Jewelry sells 500 necklaces resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The number of necklaces that must be sold to achieve $41,000 of operating income is:
Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 42 30% Contribution margin $ 98 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change?
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.
Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail Customers for an average price or S2,100 each. The company's selling and administrative costs for a typical month are presented below Costs Cost Formuala Selling $965 per month Advertising $4,793 per month plus 5% of Sales Sales Salaries and commissions $57 per piano sold Delivery of Pianos to customers $670 per month Utilities $4,903 per month Depreciaiton of Sales Facilities Administrative Executive Salaries $13,506 per month Insurance $701 per month Clerical $2,480 per month,plus $ 37 per piano sold Depreciation of Office Equipment $916 per month During August, Marvik Pianos sold and delivered 63 pianos. Prepare Traditional Income Statement and also prepare contribution format income statement for cost(Show costs and revenues on both a total and a per unit basis down through contribution margin)
Stratford Company distributes a lightweight lawn chair that sells for $ 40 per unit . Variable expenses are expenses total $ 672,000 annually . 40\% of sales , and fixed Required : Answer the following independent questions : 1. What is the product's CM per unit ?Refer to the original data . Assume that the company sold 44,000 units last year . The sales manager is convinced that a 7 % reduction in the selling price , combined with a increase in advertising expenditures , would increase annual unit sales by . Prepare two contribution format income statements : one showing the results of last year's operations , and one showing what the results of operations would be if these changes were made . ( Do not round intermediate calculations . Round " Per Unit " answers to 2 decimal places . ) 30\% Answer is not complete . Last Year Proposed Total Per Unit Total Per Unit Sales Less Variable expenses Contribution margin $ 24.00 $ 7.00 Less Fixed expenses Net operating income 5 - b . Would you…
Sweet Charity Company manufactures candy bars for fundraising initiatives for children's nonprofits. Candy bars are sold to organizations at $1.00 each. Variable costs of production and packaging are S.60 and company fixed costs are $700,000. The company's current sales level is $2,000,000. What is Sweet Charity's margin of safety in dollars? a s100,000 b S144,000 c S250,000 d S240,000
Gustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $84,000 for a pound of product. Walt and Jessie Pharmaceutical Co. has the capacity to make 1000 pounds of product per month. The following costs are associated with the company's normal monthly production of the sale of 970 pounds of product: Direct Material per Pound of Product $9,000 Direct Labor per Pound of Product $2,000 Variable MOH per Pound of Product $3,000 Fixed MOH per Pound of Product $3,000 What is the minimum price Walt and Jessie Pharmaceutical Co. would be willing to accept per pound of product for the order? Round your answer to the nearest dollar. Hint: You can solve this problem using the formula for minimum transfer price. Transfer price >= incremental variable costs per unit + (Sacrificed regular contribution margin/ # units transferred) Minimum price = incremental variable costs per unit + ((# units…
The Hurley Hat Company manufactures baseball hats. Hurley’s primary customers are sporting goods stores that supply uniforms to youth baseball teams. Following is Hurley’s income statement for 2018: In 2018, Hurley produced and sold 200,000 baseball hats. Of the Cost of Goods gold, $150,000 is fixed; 80% of the Selling and Administrative Expenses are fixed. There were no beginning inventories on January 1, 2018. The company is considering two options to increase sales. Option 1: The company is operating at 100,000 hats below full production capacity and is considering increasing advertising to increase sales to the production capacity level in 2019. The marketing director predicts that an additional $100,000 expenditure for advertising Would increase sales to 300,000 hats per year. Option 2: The sales manager has been negotiating with buyers for several national sporting goods retailers and recommends the company expand production capacity to 400,000 hats in order to secure long-term…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS