EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1]Whirly Corporation's most recent income statement is shown below:TotalPer UnitSales (10,000 units)Variable expenses$350,000$35.00200,00020.00Contribution margin .Fixed expenses$15.00150,000135,000$ 15,000Net operating incomeRequiredPrepare a new contribution format income statement if the sales volume increases by 300 unitsAnswerTitleTotalPer UnitSales RevenueVariable ExpensesContribution MarginFixed ExpensesNet Operating Income

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EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1] Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (10,000 units) Variable expenses $350,000 $35.00 200,000 20.00 Contribution margin Fixed expenses .. 150,000 $15.00 ... 135,000 Net operating income $ 15,000 ....

EXERCISE 5–1 Preparing a Contribution Format Income Statement [LO5–1] Whirly Corporation's most recent income statement is shown below: Total Per Unit Sales (10,000 units) Variable expenses $350,000 $35.00 200,000 20.00 Contribution margin Fixed expenses .. 150,000 $15.00 ... 135,000 Net operating income $ 15,000 ....

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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EXERCISE 5-1 Preparing a Contribution Format Income Statement [LO1] Wheeler Corporation's most recent income statement follows: Total Per Unit Sales (8,000 units) ... Variable expenses . $208,000 144,000 $26.00 18.00 Contribution margin . 64,000 $ 8.00 Fixed expenses . 56,000 Net operating income $ 8,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): 1. The sales volume increases by 50 units. 2. The sales volume declines by 50 units. 3. The sales volume is 7,000 units.
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Question 23 v Saved Dreamworks Ltd. produces dream spheres. Projected sales and production for 2021 are as follows: 2021 1 2 4 Quarter (Jan - Mar) (Apr - Jun) (Jul - Sep) (Oct - Dec) Expected Sales (units) 30,000 33,000 38,000 35,000 Unit Selling Price $75 $75 $75 $75 Expected Production (units) 30,300 33,500 37,700 35,100 Manufacturing overhead consists of variable costs of $9 per unit produced and annual fixed costs of $2,000,000. Selling and administrative expenses consist of sales commissions of 15% of sales and fixed costs of $248,000 per quarter. Required: a) What is the total manufacturing overhead for the fourth quarter? (Use the space below to show your work) b) What are the total Selling, General and Administrative expense for the fourth quarter? (Use the space below to show your work) U v II Paragraph B I + Part a) Add a File Record Audio Record Video
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Problem 21-2A Cost behavior estimation LO P1 Skip to question [The following information applies to the questions displayed below.] Alden Co.’s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold Total Cost 1 315,500 $ 153,000 7 364,500 $ 311,084 2 160,500 96,750 8 265,500 147,250 3 260,500 201,100 9 76,900 69,500 4 200,500 95,500 10 145,500 126,125 5 285,500 197,000 11 89,500 89,500 6 185,500 107,500 12 95,500 86,150 Problem 21-2A Part 2 2. Predict future total costs when sales volume is (a) 371,000 units and (b) 411,000 units.
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PROBLEM 7–18 Relevant Cost Analysis in a Variety of Situations [LO 7–2, LO 7–3, LO 7–4]Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this level of activity are given below: Direct materials................................$10.00 Direct labor ...................................4.50 Variable manufacturing overhead................2.30 Fixed manufacturing overhead ..................5.00($300,000 total) Variable selling expenses.......................1.20 Fixed selling expenses ......................... 3.50($210,000 total) Total cost per unit..............................$26.50 1. Assume that Andretti Company has sufficient capacity to produce 90,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the present 60,000 units each year if it were willing to increase the fixed selling…