This topic is about CVP Analysis. Check the photo for the problem Presented are comparative 20x1 and 20x2 incomestatements for Holiday Productsm Inc.Holiday Products, Inc.Comparative Income StatementsFor the Years Ending December 3, 20x1 and 20x220x1 20x2Unit sales5,000 8,000Sales revenueP65,000P104,000Expenses75,000 90,000Net income (loss)14,000(P10,000)PRequirements:a. Determine the break-even sales in units.b. Determine the unit sales volume in (P) and (U)required to earn a profit of P10,000.

Variable cost per unit = Difference between expenses of two years/Difference between unit sales of…

Answered: CVP Analysis

Business

Accounting

CVP Analysis

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 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...

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Comparative Income Statements Consider the following income statement data from the Ross Company: Current Year Previous Year $525,000 $451,000 336,000 280,000 105,000 100,000 60,000 55,000 7,800 6,400 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANY Comparative Income Statements Sales Revenue Cost of Goods Sold Selling Expenses Administrative Expenses Total Income before Income Taxes Increase Current Year Previous Year (Decrease) $ $ $ $ $ $ Percent Change % % % % % % % % %
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
Horizontal analysis of the income statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000
Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ % Sales $725,000 $645,000 Cost of goods sold 570,800 293,200 Gross profit 154,200 351,800 Operating expenses 128,000 251,600 Net income $26,200 $100,200 Reason for Decline in Net Income Using the common-size percentages, which item is most responsible for the decline in net income?
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income?
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Current Year $381,300 312,000 $69,300 $19,210 18,150 $37,360 $31,940 12,800 $19,140 Previous Year $310,000 260,000 $50,000 $17,000 15,000 $32,000 $18,000 7,200 $10,800
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
Saved Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year %24 % Sales $ 740,000 $ 655,000 Cost of goods sold 570,800 282,200 Gross profit 169.200 Operating expenses Net income 372,800 258,800 $ 114,000 129,200 40,000 ere to search a f6 24 4 & L. 8. E T Y
1. Prepare a comparative statements for Sunshine Co. showing an income statement for 3 year period. 2020. 2021Sale 475,000. 505,000Less: Cost of sales. 210,000. 250,000Gross Profit on Sales. 265,000 255,000Less: Operating Expenses. 180,000. 155,000Net Income 85,000. 100,000
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $369,600 $280,000 Cost of goods sold 312,000 240,000 Gross profit $57,600 $40,000 Selling expenses $17,080 $14,000 Administrative expenses 15,600 12,000 Total operating expenses $32,680 $26,000 Income before income tax $24,920 $14,000 Income tax expenses 10,000 5,600 Net income $14,920 $8,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $369,600 $280,000 $ % Cost of goods sold 312,000 240,000 % Gross profit $57,600 $40,000 %
Comparative Income StatementsConsider the following income statement data from the Ross Company: Current Year Previous Year Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 105,000 99,000 Administrative expenses 60,000 54,000 Income tax expense 7,800 5,400 Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANYComparative Income Statements Current Year Previous Year Increase(Decrease) PercentChange Sales Revenue Answer Answer Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Selling Expenses Answer Answer Answer Answer Administrative Expenses Answer Answer Answer Answer Total Answer Answer Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer…