Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,000,000 500,000 500,000 200,000 $ 300,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio?
Q: A company is planning to manufacture rocking chairs. The fixed cost is $40,000 and the cost pre…
A: Revenue means amount to be received from sale of goods and services. Sales revenue can be calculated…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games…
A: Magic Realm Incorporated Question - 1) (a)…
Q: Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year…
A: Prepare a contribution format income statement for the game last year and compute the degree of…
Q: Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets.…
A: The total cost of truck would be calculated as the total gasoline costs and insurance costs. The…
Q: Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,700 games last year at…
A: Degree of Operating leverage (DOL) is a measure of the change in the operating income of the company…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 28,800 games…
A: The contribution margin refers to the difference between the sales and the contribution margin. The…
Q: Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of…
A: Variance :Variance in standard costs means, the deviation of actual cost from budgeted cost.In other…
Q: axine's Pumps (MP) sells bilge pumps for $250 each. Each pump cost $100 to produce and MP's fixed…
A: Break-even point is the level of sales at which, sale revenue is equal to the fixed and variable…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 60,000 games…
A: Formula: Net income = Revenues - Expenses.
Q: Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct…
A: Variable costs are those costs which changes along with change in activity level. Fixed costs are…
Q: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual…
A: 1. Cost at highest level of activity (1,05,000*0.114) 11,970Cost at Lowest level of…
Q: Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year…
A: 1. Reference:
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games…
A: Solution.. Selling price per unit = $64 Variable cost per unit = $44 Fixed cost = $440,000…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 60,000 games…
A: Lets understand the basics. Contribution margin income statement is prepared by the management to…
Q: Magic Realm, Inc., has developed a new fantasy board game. The company sold 42,500 games last year…
A: Introduction: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…
Q: Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for…
A: Assumption: Requirement is to compute the Expected annual worth for each location
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 38,000 games…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Use the following information for the Quick Study below. (Algo) Skip to question [The following…
A: Using absorption costing, the fixed and variable manufacturing costs are included in the product…
Q: Magic Realm, Incorporated, developed a new fantasy board game and sold 47,500 units last year at a…
A: Contribution margin is the difference between the sales and the variable cost. It thus contributes…
Q: Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing…
A: Contribution margin ratio is the contribution margin expressed in terms of sales / revenue.…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 55,800 games…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 19,000 games…
A: 1 Degree of operating leverage means the division of contribution with operating income.Degree of…
Q: BBMLOVESLENI Company operates a fleet of delivery trucks in Luzon. The company has determined that…
A: SOLUTION- WORKING NOTE-1 CALCULATION OF VARIABLE COST AND FIXED COST USING LOW HIGH METHOD-…
Q: Required: 1-a. Prepare a contribution format income statement for the game last year.
A: The income statement commonly referred to as the profit and loss account, is a crucial financial…
Q: Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable…
A: Breakeven refers to the point where the total cost and total revenue are equal which means there is…
Q: ! Required information [The following information applies to the questions displayed below.] C. W.…
A: Market share variance: = Actual Market Sales Quantity x (Budgeted Market Share % - Actual Market…
Q: A company rents snow skis and transports customers to and from their ski trip at a local ski slope.…
A: Break-even in units = Fixed costs/Contribution margin per unit Target sales = (Fixed costs +…
Q: Pharoah Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some…
A: Lets understand the basics.Management needs to calculate break even point in ordered to determine…
Q: The Reward One Company manufactures windows. Its manufacturing plant has the capacity to produce…
A: Workings:
Q: Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct…
A: Opportunity cost per unit=Regular selling price per unit-Variable cost per unit
Q: Oak Island Amusements Center provides the following data on the costs of maintenance and the number…
A: Variable cost per unit using high-low method (Highest Cost - Lowest Cost) / (Highest no. of visitors…
Q: A company that sells radios has yearly fixed costs of $600,000. It costs the company $45 to produce…
A: Given that Cost function = C(x) = 600,000 + 45x Revenue function = R(x) = 65x
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 52,200 games…
A: Answer 1-a) Contribution Margin Income Statement Sales Revenue (52,200 units X $ 68 per…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 1,920,000 960,000 960,000 160,000 $ 800,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 42,000 units and $3,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 11%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the…Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $ 2,160,000 Variable expenses 1,080,000 Contribution margin 1,080,000 Fixed expenses 200,000 Net operating income $ 880,000 Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $50,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 18%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is…Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales $ 3,240,000 Variable expenses 1,620,000 Contribution margin 1,620,000 Fixed expenses 180,000 Net operating income $ 1,440,000 Required: Answer each question independently based on the original data: 1. The sales manager is convinced that a 12% reduction in the selling price, combined with a $71,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year? 2. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.20 per unit. He…
- Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,160,000 Variable expenses 1,080,000 Contribution margin 1,080,000 Fixed expenses 160,000 Net operating income $ 920,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year’s unit sales and total sales increase by 44,000 units and $3,520,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in net operating…Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,160,000 Variable expenses 1,080,000 Contribution margin 1,080,000 Fixed expenses 160,000 Net operating income $ 920,000 Required: Answer each question independently based on the original data: 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $72,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income…Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales $ 2,160,000 Variable expenses 1,080,000 Contribution margin 1,080,000 Fixed expenses 180,000 Net operating income $ 900,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year’s unit sales and total sales increase by 59,000 units and $4,720,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 13%. Using the degree of operating leverage from last year, what percentage increase in net…
- Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $12 per unit, and fixed expenses total $140,000 per year. Its operating results for last year were as follows: Sales (24,000 units) 480,000 Variable expenses 288,000 Contribution margin 192,000 Fixed expenses 140,000 Operating income 52,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio?Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses $ 1,040,000 520,000 520,000 160,000 Net operating income 360,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 48,000 units and $1,920,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize…Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $8 per unit, and fixed expenses total $180,000 per year. Its operating results for last year were as follows: Sales $ 400,000 Variable expenses 160,000 Contribution margin 240,000 Fixed expenses 180,000 Net operating income $ 60,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $75,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 20%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is…
- Feather Friends, Inc distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40 per unit and fixed expenses total 200000 per year. Its operating results for last year were as follows: Sales 2240000 Variable expenses 1120000 Contribution Margin 1120000 Fixed Expenses 200000 Net Operating income 920000 Answer this question independently based on the original data: Assume this year's unit sales and total sales increase by 54000 units and 4320000 respectively. If the fixed expenses do not change, how much will net operating income increase?Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 3,120,000 Variable expenses 1,560,000 Contribution margin 1,560,000 Fixed expenses 160,000 Net operating income $ 1,400,000 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 17%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $66,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales manager's ideas are…A-7