Harrison Company expects to sell 180,000 units of its product next year, which would generate total sales of $14,940,000.Management predicts that income for next year will be $1,230,000 and that the contribution margin per unit will be $27.Complete the below table to calculate the next year's expected variable costs and fixed costs.HARRISON COMPANYForecasted Contribution Margin Income StatementUnits$ per unitContribution margin180,00027

Income statement is a financial statement that shows profitability, total revenue and total…

Answered: Harrison Company expects to sell…

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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Apple company has the following information: Annual sales= 7.5 Million, annual interest rate amount= 729166, variable costs = 35% of sales, DFL=6. Based on these details, the total fixed cost will be approximately:
calculate the break even number of units with a target profit of 12,000 if fixed expenses are 15,000 and the contribution margin is 60 dollars per unit
Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Compute the new operating income (profit) if sales are 10% higher than expected.
At current production volume of 100 units, fixed costs are $10 per unit and variable costs are $4 per unit. Production is expected to increase to 120 units in the next period. This is a short-term change within the relevant range. Predict total costs for the next period. $1,680 $1,480 O $1,400 $1,600 $480
For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000. Required: 1. Compute the anticipated break-even sales (units). units
[The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 2 3 4 5 6 320,000 160,000 280,000 200,000 300,000 200,000 Total Cost $ 160,000 100,000 220,000 100,000 230,000 120,000 Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs Month 7 8 9 10 11 12 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) Total Cost $ 220,000 160,000 64,000 140,000 100,000 80,000 High-Low method - Calculation of…
Data concerning Lancaster Corporation's single product appear below: Per Unit Percent of Sales Selling Price $200 100% Variable Expenses $60 30% Contribution Margin $140 70% Fixed expenses are $105,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $44. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change? A. Decrease of $38,400 B. Decrease of $5,600 C. Increase of $38,400 D. Increase of $5,600 2.
Calculating breakeven point for two products, margin of safety, and operating leverage The contribution margin income statement of Delectable Donuts for August 2020 follows: DELECTABLE DONUTS Contribution Margin Income Statement Month Ended August 31,2020 Sales Revenue $ 150,000 Variable Costs: Cost of Goods Sold $ 41,000 Selling Costs 15,000 Administrative Costs 4,000 60,000 Contribution Margin 90,000 Fixed Costs: Selling Costs 37,800 Administrative Costs 12,600 50,400 Operating Income $ 39,600 Delectable sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $5.00, with total variable cost of $2.00 per dozen. Requirements 1 Calculate the weighted-average contribution margin. 2 Determine Delectable's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by preparing a summary contribution margin income…
2Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farms assuming it purchases the new equipment. Assume sales level remains unchanged.
Lewis Production Company had the following projected information for the year: Selling price per unit Variable cost per unit Total fixed costs What is the break-even point in units? Select one: O. A. 60,000 units O B. 3,333 units OC. 5,000 units O D. 2,000 units £150 £90 £300,000
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 Saw! 3 4 5 6 7 8 9 10 11 12 Units Sold 315,000 160,000 260,000 200,000 Total cost 285,000 185,000 365,000 265,000 77,000 145,000 89,000 95,000 Total Cost: $152,500. 96,250 200,600 95,000 196,500 107,000 314,800 146,750 70,000 125,625 89,000 86,650 2. Predict future total costs when sales volume is (a) 370,000 units and (b) 410,000 units. 370,000 units 410,000 units

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