Evan's margin of safety in dollars and percentage are closest to:
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Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month:
Sales | $ | 17,600 |
Variable expenses | 9,680 | |
Contribution margin | 7,920 | |
Fixed expenses | 3,600 | |
Net operating income | $ | 4,320 |
Evan's margin of safety in dollars and percentage are closest to:
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- Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Fixed expenses are $2,340 per month. Required: 1. Assuming the sales mix above, do the following: Break-even sales dollars Margin of safety in dollars Margin of safety in percentage Warm $10.00 $ 2.50 2,700 units $ a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm 0 % 0.00 $ Cozy $ 15.00 $ 7.50 % 900 units Cozy 0 % 0.00 $ Total 0 0 % b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales. (Do not round your intermediate…Cullumber provides shuttle service between 4 hotels near a medical center and an international airport. Cullumber uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is as follows. Sales (1,370 passengers) Variable costs Fuel Tolls and parking Maintenance Contribution margin Fixed costs Salaries Depreciation (straight-line) Insurance Net income Break-even point Break-even point $3,836 $ 2,359 655 12,300 1,100 1,000 $34,250 6,850 Calculate the break-even point in (1) sales dollars and (2) number of passengers. 27,400 14,400 $13,000 passengers: The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles ofshoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus asmall base salary.The following data pertains to Shop 48 and is typical of the company’s many outlets:Per Pair ofShoesSelling Price $30Variable Expenses:Invoice Cost 13.50Sales Commission 4.50---------Total Variable Expenses $ 18.00AnnualFixed Expenses:Advertising $ 30,000Rent 20,000Salaries 100,000---------------Total Fixed Expenses $ 150,000Required:a. What is Shop 48’s annual break-even point in unit sales and dollar sales?b. Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000pairs of shoes sold each year. Clearly indicate the break-even point on the graph.c. If 12,000 pairs of shoes are sold in a year, what would be Shop 48’s net operating income(loss)?d. If this year’s sales increase by $75,000 and fixed expenses do not…
- Please prepare h contribution margin income statement for the month of June thankuEspresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,400 and the variable cost per cup of coffee served is $0.54. 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,000 1,100 1,200 Fixed cost Variable cost Total cost $0 $0 $0 Average cost per cup of coffee servedMetlock sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Selling price Variable cost/unit (a) (b) Books $9 3 Your answer is correct. Books In addition, Metlock incurs facility and administrative costs that average $28,080 per month. eTextbook and Media Movies Movies Weighted-average contribution margin $ Magazines $14 Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.) Your answer is incorrect. 9 Magazines $5 units 1 Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.) units units 5.2 per unit Attempts: unlimited
- I could use some help with this problem no need for a long explanation just simple and with an answerI need a finantial statement for this: Sales of Soaps $50, 000 Sale of candles $ 32,000 Expenditure on materials $6, 775 Electricity payment $1,960 Rent Payment $9, 600 Depression 240 Assistant Will Be Paid $1,200 Purchase in Candle Materials $2,735 Purchase in Soap Materials 4,040 Website Payment (Shoppify) $6,000 The content manager was paid $5, 100 Cleaning Services 600 Received $1,500 in seminars 150 products sold for $8 = 1,200 300 products sold for $10 = 3,000 Paid $75 for security Took out a $1,200 loan for workshop materials 150 MRO Expenses 100 workshop materials were used The soap cutter had a depreciation of $20 $1,200 was invested in paint for the venue Took out a $500 loan for event promotion A collaboration was made with a brand where $1,000 was invested 200 inventory materials were used Paid $1,440 for soap creation Paid $1,440 in candlestick creation $600 was paid for an on-site mural $600 worth of candle manuals sold $600 worth of candle manuals soldTiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140,000 of net income in 2015, when 50 students were enrolled and data for variable costs per child and total fixed costs were as follows: CostSchedule : Variable Costs: Lunch & snacks $1,000 Education Supplies 750 Other supplies (toiletries etc.) 250 $2,000 Fixed Costs: Rent $20,000 Utilities 3,000 Insurance 3,000 Salaries 30,000 Miscellaneous 4,000 $60,000 Required: a) Compute the charge per child, using the equation method. b) What is the contribution per child? What is the contribution margin ratio? c) Calculate Tiny Tot’s break-even point in number of children and in sales dollars. d) Calculate the margin of safety in number of children and sales dollars. e) Given the expected enrolment of 50 children, prepare a contribution margin…
- Crazy Canucks is a small, family-owned retailer specializing in alpine ski and snowboard equipment located in Squamish, B.C. An income statement for the ski department's most recent month is shown below. Operating income CRAZY CANUCKS Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Income Statement-Crazy Canucks For the Month Ended January 31 Variable expenses: Crazy Canucks Income Statement-Crazy Canucks For the Month Ended January 31 $60,600 20,200 Skis sell, on average, for $1,500 per pair. Variable selling expenses are $152 per pair of skis sold. The remaining selling expenses are fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an average cost of $900 per pair. $ 303,000 181,800 121,200 Required: 1. Prepare an income statement for the month using the contribution approach. 0 80,800 $ 40,400 2Linda Robert sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $53,000 Cost of goods sold (all variable) 30,000 Gross margin 23,000 Selling expenses (70% variable) 8,000 Administrative expenses (20% variable) 12,000 Operating income $3,000Following is relevant information for Philly's Sandwich Shop, a small business that serves sandwiches: Total fixed cost per month Variable cost per sandwich $1,020.00 1.50 Sales price per sandwich 5.75 During the month of June, Philly's sold 580 sandwiches. Required: Complete the contribution margin income statement for the month of June. Note: Round your final answers to the nearest whole dollar. Philly's Sandwich Shop Contribution Margin Income Statement Month of June Contribution margin Net Operating income