Exercise 5-12 (Static) Multiproduct Break-Even Analysis [LO5-9]Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contributionmargin ratios for the two products follow:SalesCM ratioProductFlightDynamic$ 150,000TotalSure Shot$ 250,00080%36%$ 400,000?Fixed expenses total $183,750 per month.Required:1. Prepare a contribution format income statement for the company as a whole.2. What is the company's break-even point in dollar sales based on the current sales mix?3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase?Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimalplaces (i.e. .1234 should be entered as 12.34).)

Step 1:Excel workings: Formulas:Step 2:Detailed explanations:1. Contribution Format Income…

Answered: Exercise 5-12 (Static) Multiproduct…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Brief Exercise 11-3 (Algo) Contribution margin income statement LO 11-3 Lite Packs Company (LPC) makes and sells ultra-light backpacks. During Year 1, LPC sold 1,600 backpacks for $51 each. Each backpack has a variable cost of $28 and the company had total fixed cost $5,400. Required: Prepare a contribution format income statement for Lite Packs Company. LITE PACKS COMPANY Income Statement Accounts payable $ 0 EA $ 0
H1. Account
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Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sales CM ratio $ 660,000 Sure Shot $340,000 68% 76% Total $1,000,000 ? Fixed expenses total $567,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $57,000 a month, by how much would you expect the monthly net operating income to increase?
Subject : accounting
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ces Exercise 2-17 (Algo) Break-Even and Target Profit Analysis [LO2-4, LO2-5, LO2-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $162,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have…
aung movie to metast: what are your assumpave. EXERCISE 2-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs L02-1, LO2-4 Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 3. Sales (20,000 units) Variable expenses. Contribution margin 4. Fixed expenses.. Net operating income. Total $300,000 180,000 120,000 70,000 $ 50,000 EXERCICE Per Unit $15.00 9.00 $ 6.00 38150123 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? po besupp BekadW do 1 What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? Cuan and Tardot Profit Analveie 102-3-1024 102-5 102-6 og eint 01 stall What is the…
Question 5 Cawley Company makes three models of tasers. Information on the three products is given as follows. Tingler Shocker Stunner Sales revenue $300,000 $500,000 $200,000 Variable expenses 150,000 200,000 145,000 Contribution $150,000 $300,000 $ 55,000 margin Fixed expenses 120,000 230,000 95,000 Net income $ 30,000 $ 70,000 $(40,000) Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Tingler), $80,000 (Shocker) and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The additional fixed expenses would be eliminated if a model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Instructions (a) Compute current net income for Cawley Company. (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner…
Exercise 3-48 (Static) CVP With Income Taxes (LO 3-4) Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $102,900. Gardendale Associates is subject to an income tax rate of 24 percent. Required: a. What total revenue does Gardendale have to generate from selling consultations to break even? b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400 after taxes? Break-even revenue Required revenue
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