Kindly help me with accounting questions Dragon Games Co. has developed a new strategy card game. Thecompany sold 45,000 games last year at a selling price of $45 per game.Fixed expenses associated with the game total $825,000 per year, andvariable expenses are $15 per game. Production of the game isoutsourced to a card manufacturing company. Variable expenses consistmainly of payments to this manufacturer.a. Prepare a contribution format income statement for the game last year.b. Compute the degree of operating leverage.

Step 1: Definition of Contribution Format Income StatementThe Contribution Format Income Statement…

Answered: Dragon Games Co. has developed a new…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
What is the economic order quantity of this financial accounting question?
naru
Olongapo Sports Corporation distributes two premium golf balls—the Flight Dynamic and the Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: picture1 Fixed expenses total $183,750 per month. Required:1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.2. Compute the break-even point for the company based on the current sales mix.3. If sales increase by $100,000 a month, by how much would you expect net operating incometo increase? What are your assumptions?
Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the production capacity, the production cost per computer,and the fixed cost of operating a plant for a year are given in the file P06_56.xlsx. Determine how Toshovo can maximize its yearly profit from computer production.
Ultrasonic Company manufactures ultrasound equipment. Based on past experience, Ultrasonic has found that total annual repair and maintenance cost can be represented by the following formula: Total annual repair and maintenance cost = $205,000 + $7.50x, where x = machine hours. Last year, Ultrasonic incurred 145,000 machine hours. A. What was the total repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 1 of 6$ B. What was the total fixed repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 2 of 6$ C. What was the total variable repair and maintenance cost incurred by Ultrasonic last year?fill in the blank 3 of 6$ D. What was the total repair and maintenance cost per machine hour last year? (Round answer to two decimal places.)fill in the blank 4 of 6$ E. What was the fixed repair and maintenance cost per machine hour last year? (Round answer to two decimal places.)fill in the blank 5 of 6$ F. What was the variable repair…
Falcon Tech Co. manufactures and sells portable chargers. The company has annual fixed costs of $12,000,000. Each charger sells for $20 and incurs $11 in variable manufacturing costs. If the company’s total sales revenue last year was $45,000,000, how many chargers must Falcon Tech sell to achieve EBIT = 0?
Thank you.
Computate Inc. produces microprocessors for laptops. Last year, the company recognized revenues of $4,000,000. Total costs for the period were $2,000,000, of which $500,000 were fixed. If sales were to increase by $150,000, by how much would Computate’s operating income increase?
"Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $200,000 based on a sales volume of 200,000 video disks. Disk City has been selling the disks for $16 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $600,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.). "Required: 1.Calculate Disk City’s break-even point for the current year in number of video disks. 2.What will be the company’s net income for the current year if there is a 10 percent increase in projected unit sales volume? 3.What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $16? 4.In order to cover a 30 percent increase in…
Acme Inc. manufactures and sells widgets. Acme Inc. sells widgets for $15 each. Acme Inc. uses 3 gizmos for each widget. Gizmos cost $2 each. In December, Acme sold 300 widgets. Acme also pays rent of $500 per month. please show work. A.) What is Acme Inc.'s contribution margin per unit? B.) What is Acme Inc.'s contirbution margin ratio? C.) Assuming the about information is all revenue and expenses for scme, what is December's net income? D.) Determine the fixed cost give the following information: Lowest level of activity- 200 units at a total cost of $600 Highest level of activity- 800 units at a total cost of $1,800 Fixed cost =

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