Exercise 6-10 Multiproduct Break-Even Analysis (LO6-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper $104,000 32,200 $ 71,800 Makeover $ 52,000 6,800 $ 45,200 Total $ 156,000 39,000 Sales Variable expenses Contribution margin 117,000 Fixed expenses 84,600 $ 32,400 Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the overall contribution margin (CM) ratio for the company? Overall CM ratio % Required 1 Required 2 >

Exercise 6-10 Multiproduct Break-Even Analysis (LO6-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper $104,000 32,200 $ 71,800 Makeover $ 52,000 6,800 $ 45,200 Total $ 156,000 39,000 Sales Variable expenses Contribution margin 117,000 Fixed expenses 84,600 $ 32,400 Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the overall contribution margin (CM) ratio for the company? Overall CM ratio % Required 1 Required 2 >

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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Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Blujets Blupens P20 Selling prices Variable costs P40 8 24 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 4. If the sales mix was to change to 2 units of blujets to 1 unit of Blupen, would this have any effect on the breakeven sales? If so, what would be the new breakeven sales? 5. Assuming that the sales volume would remain at P1 million, what net income would be generated using the sales mix in number (4) above? 6. What sales revenue would be required if the firm wishes to generate a net income of P328,900 if the original mix of 3:1 prevailed?
Question 10 Zulfiqar Incorporation produces and sells a single product, has provided its contribution format income statement for April. Sales (1,500 units) Rs. 1,500,000 Variable Expenses 1,102,500 Contribution Margin 397,500 Fixed Cost 272,950 Net Profit 124,550 Calculate the Break Even Sales in Rs. for Zulfiqar Incorporation?
Exercise 6-1 The Effect of Changes in Activity on Net Operating Income [LO6-1] Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,100 units) $ 251,100 $ 31.00 Variable expenses 145,800 18.00 Contribution margin 105,300 $ 13.00 Fixed expenses 54,600 Net operating income $ 50,700 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,100 units?
QUESTION 4 E22.13 E22.13 (LO 3, 4) Billings Company has the following information available for September 2020. Prepare CVP income statements. Unit selling price of video game consoles $ 400 Unit variable costs $ 280 Total fixed costs $54,000 Units sold 600 Instructions a. Compute the unit contribution margin. b. Prepare a CVP income statement that shows both total and per unit amounts. c. Compute Billings' break-even point in units. d. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Question Content Area Multiple-Product Break-Even and Target Profit Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $62 $14 Unit variable cost $11 $8 Direct fixed cost $25,200 $47,000 Common fixed selling and administrative expenses total $70,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = fill in the blank 614f11ff0fb7fcb_1 : fill in the blank 614f11ff0fb7fcb_2 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number.…
H 05 i Saved Help Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit $ 310,000 217,000 Sales $ 20 Variable expenses 14 Contribution margin 93,000 $ 6 Fixed expenses 73, 200 Net operating income $ 19,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $32,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $84.000 per month and there is change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this…
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
Eercise 1 CVP Relationships high electromagnetic radiation environments. Kelter Company manufactures and sells a specialized cordless telephone contribution format income statement for the most recent year is grven L Exurcises CVP Relationships The companys ur helow Total Per Unit % of Sales Sales (20,000 units) Less: Variable expenses Contribution margin Less Fixed expenses P1,200,000 P60 100% 900,000 45 P 300,000 15 240,000 Net operating income P 60,000 Management is anxious to improve the company's profit performance and has asked for an analysis of a number of items.
Exercise 18 -8 (Static) Computing missing amounts in contribution margin income statements LO A1 Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) \table[[Number of units sold, Company A, Company B], [,,,, 1,975, ], [,, otal,,unit, Total, Per unit], [Sales, $, 208, 000, $, 65.00,, ], [Variable costs,, 150, 400,,, 39, 500, ], [Contribution margin,,,,, 43, 450, ], [Fixed costs,,,,,19, 750, ], [ Income, $, 46, 400,,,,]]
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 7-5 (Algo) Companywide and Segment Break-Even Analysis [LO7-5] 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 $ 675,000 405,000 1. Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even 270,000 132,000 138,000 58,000 $ 80,000 North $ 450,000 315,000 135,000 66,000 $ 69,000 South $ 225,000 90,000 135,000 66,000 $ 69,000 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. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)