Corp used the following data for the year. Its actual and budgeted selling price is$18 per unit.Actual Static Budgetunits sold 41,000 units. 40,000variable costs $164,000. $156,000fixed costs $46,000 $48,000If Corp had known ahead of time (when making its static budget for the year) that itwould actually sell41,000 units, what would it have budgeted/estimated its operating income to be?In other words, what isthe flexible budget amount for operating income?

The objective of the question is to calculate the flexible budget amount for operating income if…

Answered: Corp used the following data for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q10. A company has prepared the following budget for a given month: Product Selling Price (per unit) Variable Cost (per unit) Unit Sales A $10 $4 15k B $15 $9 21k C $19 $8 4k Assuming that total fixed expenses will be $150.9 and the sales mix remains constant, determine the firm’s dollar sales to break-even. Note: The term “k” is used to represent thousands (× $1,000).
) ML sells three products: Good, Better and Best. The market for the products dictates that the number of products sold are always in the ratio of 3Good:4Better:5Best. Budgeted sales volume and prices, and cost details for the previous period were as follows: Good Better Best Sales units 300 400 500 Selling price per unit GHS80 GHS55 GHS70 Contribution to sales ratio 70% 65% 50% The budgeted total fixed costs for the period were GHS31,200 Required: Calculate for that period: (i) The break-even sales revenue. (ii) The volume of each product that would have needed to be sold if the company had wanted to earn a profit of GHS29,520 in that period.
A company’s flexible budget for 19,000 units of production showed sales, $87,400; variable costs, $43,700; and fixed costs, $24,000. The variable costs expected if the company produces and sells 24,000 units is?
. Nintendo was at year-end and was disappointed based on its preliminary results. Management expected sales volume to be 25,000 handheld video gaming units instead of the actual sales of 23,000 units. The company's budgeted information was as shown below: Unit selling price $100 Unit DM cost $25 Unit DL cost $10 Unit Variable-MOH cost $5 Fixed-MOH costs $360,000 Fixed SG&A costs $280,000 a. Prepare a master budget and a flexible budget for Nintendo. b. Compare the flexible budget to the master budget, determining the sales activity variances for all budgeted income statement accounts, specifying amount, and whether the variance is favorable (F) or unfavorable (U).
None
A company’s flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs,$20,000. What are the sales expected if the company produces and sells 20,000 units?
Two businesses, p td. And q Itd. Sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the coming year are as under: Q Ltd. P Ltd. Sales 1,50,000 1,50,000 Less: Variable Costs 1,20,000 1,00,000 Fixed Costs 15,000 1,35,000 35,000 1,35,000 Budget Net Profit 15,000 15,000 You are required to: Calculate the break-even point for each business Calculate the sales volume at which each business will earn rs.5,000 Profit. State which business is likely to earn greater profit in conditions of 1. Heavy demand for the product 2. Low demand for the product, and, briefly give your argument also.
Corporation has a normal capacity of 2,000,000 units. The current year's budget was based on the production and sales of 1,400,000 units. Actual statistics came out to be: production of 1,440,000 units and sales of 1,200,000 units. Selling price is at P20 per unit and the contribution margin ratio is 30%. What is the peso value that best quantifies the marketing division's failure to achieve budgeted performance for the current year?
A company predicts its production and sales will be 24,000 units. At that level of activity, its fixed costs are budgeted at $300,000, and its variable costs are budgeted at $246,000. If its activity level declines to 20,000 units, what will be its budgeted fixed costs and its variable costs?
Abel Company manufactures a single product. Budgeted data are as follows: Production /sales 12,000 units Variable costs per unit P 7.20 Fixed costs P 9,600 Current assets 60% of sales Fixed assets P 48,000 The company wants to earn 20% return on investment (Assets), What should be the selling price per unit?a. 8.00b. 10.00c. 12.00d. 12.50
The company just hired a new marketing manager who insists unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 105,000 60,000 90,000 100,000 Selling price per unit $7 What are the total expected cash disbursements for raw materials for the year under this revised budget?
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit. Actual Budgeted Units sold 43,000 units 33,000 units Variable costs $166,000 $150,000 Fixed costs $41,000 $58,000 What is the static-budget variance of operating income? A. $164,000 unfavorable B. $181,000 favorable C. $181,000 unfavorable D. $164,000 favorable

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