Differential Income Analysis - Keep or Drop Product Line) Кeep Marvel Watches Drop Difference ((column G less column F Sales 500000 -500000 Less Costs Manufacturing expenses (variable) Depreciation Shipping Advertising (for Marvel Watches Product only) Rent (Marvel watch factory space) Sales Commissions General factory overhead (fixed) Salary of Marvel Watch line manager General Administration Expenses - Fixed 120000 50000 5000 100000 70000 75000 60000 90000 30000 1. Contribution Margin 2. subtotal of Variable Expenses 3. subtotal of Fixed Expenses 4. Net Operating Loss 5. What is differential Net Operating Loss (Advantage of Disadvantage) Do I drop the product line or keep it?

Differential Income Analysis - Keep or Drop Product Line) Кeep Marvel Watches Drop Difference ((column G less column F Sales 500000 -500000 Less Costs Manufacturing expenses (variable) Depreciation Shipping Advertising (for Marvel Watches Product only) Rent (Marvel watch factory space) Sales Commissions General factory overhead (fixed) Salary of Marvel Watch line manager General Administration Expenses - Fixed 120000 50000 5000 100000 70000 75000 60000 90000 30000 1. Contribution Margin 2. subtotal of Variable Expenses 3. subtotal of Fixed Expenses 4. Net Operating Loss 5. What is differential Net Operating Loss (Advantage of Disadvantage) Do I drop the product line or keep it?

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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The information below relates to the only product of Catherine Company: Exercise 4-13 Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume. Exercise 4-14 Cristina Corporation has fixed costs of P72,000 per month. It sells two products as follows: Sales Variable Contribution Price Cost Margin Product A P20 P8 P12 B 20 14 REQUIRED: 1. What monthly peso sales volume is required to break-even if three units of product A are sold with one unit of product B? 2. What monthly peso sales volume is required to break-even if one unit of product A is sold with three units of product B?
The question 1 point possible Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current) revenue and 2) operating income. (Hint First, find the contribution margin ratio; then prepare the contribution margin income statement) Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancif's current (1) sales revenue and (2) operating income Begin by computing the contribution margin ratio. (inter the result as a whole number) The contribution margin ratio la Question Viewer Prepare the contribution margin income statement at the calculated sales level. Stancil Drycleaners Contribution Margin Income Statement Submit t
Holding other factors constant, a company's contribution margin per unit will increase with: O a. any decrease in quantity sold. O b. increase in its total fixed costs c. O c. any decrease in the selling price per unit O d. any increase in variable cost per unit O e. None answers given are correct. 14:0 nere to search W A a 10) ENG 15-04-2 prt sc delete home end $ 96 & 6. num 8. + backspace lock V E T P home D F J K enter pause C 1 shift end alt ctrl
Subject : accounting
* CengageNOWv2 | Online teachin x now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $182,500 10 Selling expenses: Sales salaries and commissions 37,900 4 Advertising 12,800 Travel 2,900 Miscellaneous selling expense 3,100 4 Administrative expenses: Office and officers' salaries 37,100 Supplies 4,600 2…
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Subject :- Accounting
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