rr Cullumber Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statementshowed the following results from selling 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,375, and netloss $91,875. Costs and expenses consisted of the following amounts.Cost of goods soldSelling expensesAdministrative expensesTotal$2,358,315277,7502.233,310$2,869,375Variable$1,905,365102.21275,548$2,083,125Fixed$452,950175,538157.762$786,250Management is considering the following independent alternatives for 2023.1. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume.Change the compensation of sales personnel from fixed annual salaries totaling $166,650 to total salaries of $66,660 plusa 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the break-even point in sales dollars for 2022.(b)Break-even point $eTextbook and MedialYour answer is partially correct.Compute the contribution margin under each of the alternative courses of action.Contribution margin for alternative 1Contribution margin for alternative 23145000Break-even point for alternative 1Break-even point for alternative 2Compute the break-even point in sales dollars under each of the alternative courses of action.$40 %$20 %19656253431250Attempts: 1 of 3 used

Break-even point:> Level of production and sales at which there is no profit or loss.>…

Compute the break-even point in sales dollars for 2022. Break-even point $ (b) eTextbook and Media Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. S 40 $ 20 % % 1965625 3431250 Attempts: 1 of 3 used

Compute the break-even point in sales dollars for 2022. Break-even point $ (b) eTextbook and Media Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. S 40 $ 20 % % 1965625 3431250 Attempts: 1 of 3 used

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

See similar textbooks

Similar questions

Blossom Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500.500 units of product: sales $2,502,500, total costs and expenses $2,615,550, and net loss $113,050. Costs and expenses consisted of the following amounts. Cost of goods sold Selling expenses Administrative expenses Total 2 Variable $1,491,490 $2,155,090 $663,600 250,250 158,158 210,210 142,142 $2,615,550 $1,651,650 $963,900 Fixed 92,092 68,068 Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $150,150 to total salaries of $60,060 plus a 6% commission on sales, All other total costs, total expenses, and total sales remain unchanged.
Please help me to solve this question
ak.3
Sage Hill Corporation had sales of $3,360,000 for the year ended December 31, 2022. The unit selling price was $12. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $832,000 $760,000 Selling expenses 113,000 64,000 Administrative expenses 231,000 71,000 Your answer is partially correct. Prepare a GAAP income statement. SAGE HILL CORPORATION GAAP Income Statement For the Year Ended December 31, 2022 Sales 3,360,000 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses $ Administrative Expenses Total Operating Expenses Net Income/(LosS) $
For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Y1 Sales $483,672 $408,000 Cost of goods sold (358,800) (260,000) Gross profit $124,872 $148,000 Selling expenses $(50,150) $(34,000) Administrative expenses (29,520) (22,000) Total operating expenses $(79,670) $(56,000) Operating income $45,202 $92,000 Other revenue 2,166 1,700 Income before income tax expense $47,368 $93,700 Income tax expense (13,300) (28,100) Net income $34,068 $65,600 Required:
Please help me to solve this problem
For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $652,230 $560,000 Cost of goods sold (469,000) (350,000) Gross profit $183,230 $210,000 Selling expenses $(66,980) $(47,000) Administrative expenses (39,180) (30,000) Total operating expenses $(106,160) $(77,000) Operating income $77,070 $133,000 Other revenue 3,046 2,400 Income before income tax expense $80,116 $135,400 Income tax expense (22,400) (40,600) Net income $57,716 $94,800 Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages…
For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $816,816 $741,000 Cost of merchandise sold 573,400 470,000 Gross profit $243,416 $271,000 Selling expenses $79,050 $62,000 Administrative expenses 46,720 39,000 Total operating expenses $125,770 $101,000 Income from operations $117,646 $170,000 Other revenue 3,894 3,100 Income before income tax expense $121,540 $173,100 Income tax expense 34,000 51,900 Net income $87,540 $121,200
Pollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods sold-$195,000 Gross margin-$165,000 Less: Selling & administration expense-$78,600 Operating income- $86,400 Beginning assets were $565,000 and ending assets were $597, 000. Carry computations out to three decimals places A. What are average operating assets? B. what is margin? C. what is turnover? D. What is ROI?
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. Increase (decrease) in gross margin due to change in units sold. A. (P4,800) D. P16,000 B. P6,000 D. P26,000
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. A. 1.25% B. (1.25%) Percentage increase (decrease) in sales price. C. (2.125%) D. 2.125%
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. Increase (decrease) in gross margin due to change in sales price. A. P1,000 C. P17,200 B. P1,200 D. (P4,800)