evenue account of Goodwill Ltd. Has been summarised as snown below: |60,00,000 Sales Direct Materials Direct Wages Variable Overheads Fixed Overheads 18,00,000 12,00,000 | 4,80,000 17,20,000 52,00,000 Profit 8,00,000 The licensed capacity of the company is $ 80,00,000 but the proposed by the management that in order co utilise the existing capacity, the selling price of the product should be reduced by 5%. showing the effect of the proposed reduction You are required in selling price after taking into account the following changes in costs : Sales forecast $ 76,00,000 (at reduced prices) (i) (ii) (ii) Direct wages rates and variable overheads are expected to increase by 5%. Direct material prices are expected to increase by 2%. Fixed overheads will increase by $ 80,000. (iv)

evenue account of Goodwill Ltd. Has been summarised as snown below: |60,00,000 Sales Direct Materials Direct Wages Variable Overheads Fixed Overheads 18,00,000 12,00,000 | 4,80,000 17,20,000 52,00,000 Profit 8,00,000 The licensed capacity of the company is $ 80,00,000 but the proposed by the management that in order co utilise the existing capacity, the selling price of the product should be reduced by 5%. showing the effect of the proposed reduction You are required in selling price after taking into account the following changes in costs : Sales forecast $ 76,00,000 (at reduced prices) (i) (ii) (ii) Direct wages rates and variable overheads are expected to increase by 5%. Direct material prices are expected to increase by 2%. Fixed overheads will increase by $ 80,000. (iv)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
ss
Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS Cash P 150,000 Accounts Receivables-net 290,600 Inventory 50,000 Prepaid Expenses 10,400 Building 380,000 Goodwill 80,000 TOTAL P 961.000 LIABILITIES AND EQUITY Salaries Payable P 85,000 Accounts Payable 120,700 Mortgages Payable 428,000 Loan Payable 130,000 Notes Payable 84,300 Ordinary Shares 170,000 Deficit (57,000) TOTAL P961.000 The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280,…
Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A B C Sales $ 330,000 $ 480,000 $ 500,000 Cost of goods sold (242,000 ) (184,000 ) (190,000 ) Sales commissions (30,000 ) (44,000 ) (44,000 ) Contribution margin 58,000 252,000 266,000 General fixed operating expenses (allocation of president’s salary) (92,000 ) (92,000 ) (92,000 ) Advertising expense (specific to individual divisions) (6,000 ) (20,000 ) 0 Net income (loss) $ (40,000 ) $ 140,000 $ 174,000 Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…
Sagar
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Perez Munoz Number of customers (a) 81 81 Sales revenue (a × $250) $ 20,250 $ 20,250 Variable cost (a × $175) N/A (14,175 ) Variable cost (a × $0) 0 N/A Contribution margin 20,250 6,075 Fixed cost (14,175 ) 0 Net income $ 6,075 $ 6,075 Required Reconstruct Perez’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Munoz by lowering the sales price to $150 per customer. Reconstruct Munoz’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Perez by lowering the sales price to $150 per customer.
genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
Jacoby Company received an offer from an exporter for 29,500 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Line Item Description Amount Domestic unit sales price $25 Unit manufacturing costs: Variable 9 Fixed 4 The differential revenue from the acceptance of the offer is a. $1,268,500 b. $206,500 c. $737,500 d. $531,000
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637,500 300,000 142,000 158,000 62,000 $ 96,000 North $ 750,000 600,000 150,000 71,000 $ 79,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. South $ 187,500 37,500 150,000 71,000 $ 79,000
Munabhai
The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a x $230) Variable cost (a x $185) Contribution margin Fixed cost Net income Required Income Statements Required A Required B a. Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. b. Reconstruct Franklin's income statement, assuming that it serves 178 customers when it lures 89 customers away from Gibson by lowering the sales price to $130 per customer. Complete this question by entering your answers in the tabs below. GIBSON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. $ Company Name Franklin 89 $ Gibson…
7)