Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are as tollows: Revenues $600,000 300,000 300,000 Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed $140,000 72,000 Sales commissions (12% of sales) Depreciation of equipment and fixtures Store rent ($3,500 per month) Other operating costs Operating income (loss) 10,000 42,000 309,000 $ (9,000) 45,000 Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs.

Contribution margin, decision making. Welch Men's Clothing's revenues and cost data for 2017 are as tollows: Revenues $600,000 300,000 300,000 Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed $140,000 72,000 Sales commissions (12% of sales) Depreciation of equipment and fixtures Store rent ($3,500 per month) Other operating costs Operating income (loss) 10,000 42,000 309,000 $ (9,000) 45,000 Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs.

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

source for the question is in the picture Q1. Compute the contribution margin of Welch Men’s Clothing.
Q. What other actions can Mr. Welch take to improve operating income?
3-35 Contribution margin, decision making. Welch Men’s Clothing’s revenues and cost data for 2017 areas follows:Revenues $600,000Cost of goods sold (all variable costs) 300,000Gross margin 300,000Operating costs:Salaries fixed $140,000Sales commissions (12% of sales) 72,000Depreciation of equipment and fixtures 10,000Store rent ($3,500 per month) 42,000Other operating costs 45,000 309,000Operating income (loss) $ (9,000)Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operatingcosts reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs.1. Compute the contribution margin of Welch Men’s Clothing.2. Compute the contribution margin percentage.3. Mr. Welch estimates that he can increase units sold, and hence revenues by 25% by incurring additionaladvertising costs of $8,000. Calculate the impact of the additional advertising costs on operatingincome.4. What other actions can Mr. Welch take to…
3-22 Contribution margin, decision making. (LO 2) Welch Men's Clothing's revenues and cost data for 2021 are as follows: Revenues Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed Sales commissions (12% of sales) Depreciation of equipment and fixtures Store rent ($3,500 per month) Other operating costs Operating income (loss) $140,000 72,000 10,000 42,000 45,000 $600,000 300,000 300,000 309,000 $ (9,000) Mr. Welch, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs. Required 1. Compute the contribution margin of Welch Men's Clothing. 2. Compute the contribution margin percentage. 3. Mr. Welch estimates that he can increase units sold, and hence revenues by 25%, by incurring additional advertising costs of $8,000. Calculate the impact of the additional advertising costs on operating income. 4. What…
The answers I need to be answered are 1-3 in the photo image.
Given: The annual accounting data for 2018, presented below. : 1500K$ : 1000K$ Fixed factory overhead : 300K$ Variable factory overhead: 200KS Fixed admin costs : 500K$ Variable admin costs : 250KS : 400K$ 50KS :6000K$ Direct material Direct labour Sales salaries Sales commissions Sales Revenues Required: Write an income statement for the data given above, using a) the gross margin technique, and b) the contribution margin technique
Please do not give solution in image format thanku
Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin $3,136,000 2,352,000 784,000 567,000 $ 217,000 Fixed costs Pretax income 1. Assume Hudson Co. has a target pretax income of $156,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety %
Subject: accounting
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 480,000 Fixed costs Pretax income 156,000 The marketing manager believes that increasing advertising costs by $110,000 in 2020 will increase the company's sales volume to 12,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company incur the additional advertising costs?
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 480,000 $ 156,000 Fixed costs Pretax income $ 1. Compute Hudson Co's break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. Break-even point units 2. Break-even point
Need detail explanation Q. Find the breakeven point and provide the income statement at break even. ** attached image