EA9. LO 3.3 Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national salesmanager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units.Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using thisinformation:Sales (6,500 units at $115)Variable costs (6,500 units at $69)Contribution marginFixed costsNet income (loss)$747,500448,500299,00019,500279,500

Contribution Method - Under Contribution Method income statement Contribution is derived by…

Answered: EA9. LO 3.3 Brahma Industries sells…

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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Can you help me with CVP Drill #14?
please provide explanations to answers.
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per unit and cost $164 per unit in variable costs to make. Fixed costs total $60,000. 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: I Denominator: 1 3. Compute income if 5,000 units are produced and sold. Income Contribution Margin Ratio = Contribution margin ratio 0
Dellcom Inc. sells two products: a regular and a deluxe version. The owner would like to better understand the impact of the sales mix on the company's sales. The following information is available: Regular Deluxe Sales price per unit Variable cost per unit $38 $61 $15 $34 The company has total fixed costs of $384,615 for the year and they sell 9 Regular products for every 4 Deluxe product. The owner would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell units of the Regular product. Enter the number of units given the current sales mix. The company must sell units of the Deluxe product. Enter the number of units given the current sales mix.
what is the break even point in units and the break even point in sales dollars?
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,990 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $35,880
Company XYZ has $2,500,000 in fixed costs. It sells products at an average selling price of $50.Average variable costs amount to 60% of selling price. The marketing department proposesspending $500,000 on an advertising campaign which will result in increased volume ofbetween 10,000 and 30,000 units.Determine:1.Breakeven volume before the proposed ad campaign2. Breakeven volume if ad campaign undertaken3. Minimum and maximum incremental profit if ad campaign undertaken4. Would you support the proposal? Why or why not?5. Unit volume to achieve an operating profit of $800,000 assuming the ad campaign isundertakenOperating income at unit volume of 200,000 units assuming ad campaign is undertaken7. Margin of safety assuming volume of 200,000 units is achieved and ad campaignundertaken8. Incremental operating income if an additional 1,000 units are sold can you please review and answer questions 4-8?
THIS PROBLEM IS WITH COMPLETE DETAILS. SO, PLEASE ANSWER WHAT IS BEING ASKED USING THE GIVEN INFORMATION. I WILL RATE YOU AS HELPFUL IF YOU ANSWER THIS CORRECTLY. THANK YOU!
Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Assume the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in selling price, combined with a P700,000 increase in advertising expenditures, would cause annual sales in units to increase by 50%. REQUIRED: 1. Prepare two contribution margin income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. 2. Would you recommend that the company do as the sales manager suggests? Why?
Crane Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Crane and offered to purchase 264000 pounds of dog food for $1.40 per pound. Crane can produce 2048000 pounds of dog food per year, and its results for last year are as follows: Sales (1844000 at $1.65) Variable costs Contribution margin Fixed costs Operating income $3042600 O $1392800 O $1336400 O $2084400 O $1270400 1106400 1936200 814000 $1122200 If Crane accepts the offer, it will only be able to sell 1784000 pounds of dog food at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer?
Help!
5. What is the Contribution Margin Ratio (CMR) if the price is $8.82 per gallon? IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon. Fixed costs (per year) Variable Costs per gallon Rent: $18000 Glycol: $1.50 Utilities: 13200 FreezeFree 312: .50 Managerial salaries: 20000 Mfg labor: .20 Flammability permit: 12000 Packaging: .20 Other fixed expense: 2400 Inert ingredients: .60 Total fixed: $65600 Advertising: .30 Total: $3.30

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