WileyPLUSKimmel, Accounting, 7eHelp I System AnnouncementsCALCULATORPRINTER VERSIONBACKNEXTProblem 22-03A a-b, c1, dHill Industries had sales in 2019 of $7,200,000 and gross profit of $1,158,000.Management is considering two alternative budget plans to increase its grossprofit in 2020.Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volumewould decrease by 10% from its 2019 level. Plan B would decrease the sellingprice per unit by $0.50. The marketing department expects that the sales volumewould increase by 111,000 units.At the end of 2019, Hill has 40,000 units of inventory on hand. If Plan A isaccepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. IfPlan B is accepted, the ending inventory should be equal to 68,000 units. Eachunit produced will cost $1.80 in direct labor, $1.40 in direct materials, and$1.20 in variable overhead. The fixed overhead for 2020 should be $1,507,530.Prepare a sales budget for 2020 under each plan. (Round nit selling priceanswers to 2 decimal places, e.g. 52.70.)HILL INDUSTRIESSales BudgetPlan APlan BPrepare a production budget for 2020 under each plan.HILL INDUSTRIESProduction Budget CALCULATORPRINTER VERSIONBACKNEXTPrepare a production budget for 2020 under each plan.HILL INDUSTRIESProduction BudgetPlan APlan BCompute the production cost per unit under each plan. (Round answers to 2decimal places, e.g. 1.25.)Plan APlan BProduction cost per unit24Compute the gross profit under each plan.Plan APlan BGross Profit24Which plan should be accepted?should be accepted.

Sales budget is defined as the financial plan which states how the resources to be assigned in order…

Hill Industries had sales in 2019 of $7,200,000 and gross profit of $1,158,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 111,000 units. At the end of 2019, Hill has 40,000 units of inventory on hand. If Plan A is

Hill Industries had sales in 2019 of $7,200,000 and gross profit of $1,158,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 111,000 units. At the end of 2019, Hill has 40,000 units of inventory on hand. If Plan A is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Roberts and Company has a budgeted sales commissions of $200,000 for 2020, based on sales estimates of $300,000 for the same year. After the first quarter however, they realize that sales are exceeding expectations. Sales are now expected to reach $400,000 for 2020. By how much will Roberts and Company adjust their budget beginning in the 2nd quarter for sales commissions? Roberts and Company uses a static budgeting process.
Mars Company is in the period of budgeting for next year. The Sales manager forecasted the number of units to be sold as 5000 units and determined the selling price at 10 OMR per unit. The management revised these estimates with a 10% decrease in seling price and with a 20 % increase in the number of units sold. According to these revised estimates, which of the following is the revised Sales (OMR)? Select one: a. OMR 44000 b. OMR 54000 c. OMR 66000 G. OMR 50000
Top managers of McKnight Industries predicted 2024 sales of 15,000 units of its product at a unit price of $8.50. Actual sales for the year were 14,200 units at $9.50 each. Variable costs were budgeted at $2.80 per unit, and actual variable costs were $2.90 per unit. Actual fixed costs of $47,000 exceeded budgeted fixed costs by $5,200. Prepare McKnight's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Kramer Enterprises reports year-end information from 2022 as follows: Sales (160,000 units) $960,000 Cost of goods sold 640,000 Gross margin 320,000 Operating expenses 260,000 Operating income $60,000 Kramer is developing the 2023 budget. In 2023 the company would like to increase selling prices by 8%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. What is budgeted sales for 2023? A) $1,036,800 B) $1,066,666 C) $933,120 D) $864,000
You are to create a debtor ageing summary report for the year 2017/2018 for the CEO. Forecasted Sales figure for 2017/18 = 16,971,236 Using the percentages provided – calculate the figures for the report. After you have finished your yearly calculations you will then need to break down equally per quarter. Debtors ageing budget The historical records show that the debtors balance at the end of each quarter is usually about 20% of the quarter’s sales. At any time in the debtor’s balances 1% of the total debtors is overdue 90 days and over, 5% is 60 days overdue, 10% is 30 days overdue and the balance of the total debtors is current. The aged debtors’ budgets are only distributed to the accountant and the accounts receivable clerk. Aged debtors Aged Debtors Budget 2017/2018 Total Yearly Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Sales x,xxx x,xxx x,xxx x,xxx x,xxx % Debtors Sales % % % % Total Debtors % Calculation Calculation Calculation…
Mars Company is in the period of budgeting for next year. The Sales manager forecasted the number of units to be sold as 5000 units and determined the selling price at 10 OMR per unit. The management revised these estimates with a 10 % decrease in selling price and with a 20 % increase in the number of units sold. According to these revised estimates, which of the following is the revised Sales (OMR)? Select one: O a. OMR 44000 O b. OMR 54000 O c. OMR 66000 O d. OMR 50000
Ewuarbena & Co Manufacturing Ltd have budgeted to sell these quantities of its products, Chocomix, for the coming months in 2020: January – 160,000 sachets; February – 240,000 sachets; March – 200,000 sachets; April – 400,000 sachets; and May – 150,000 sachets. The company expects to sell each sachet for GHS20. The company has decided that to avoid losing customers arising from production hold-ups it would like to maintain a finished goods inventory in the future equal to one-fifth of the following month's budgeted sales. At the beginning of January 2020, the company had finished goods inventory of 10,000 sachets. What is total budgeted sales and production for the 2020 1st quarter ended (January – March 2020)? (show all workings clearly)
Below are estimates related to Sando's 2022 budget, a company that specializes in crafting unique ornaments for the Caribbean:  Selling Price: $2500  Variable Cost per Ornament: $1625  Fixed Annual Cost: $140,000  Net Profit (After Tax): $600,000  Income Tax Rate: 25% Upon reviewing the income statement mid-year, it was evident that sales did not meet the expected levels. For the first half of the year up to June 2022, 360 units were sold at the projected selling price with variable costs aligning with the plan. However, achieving the projected 2022 net profit appears unlikely without management intervention. Several mutually exclusive options have been presented for consideration: a) Option 1: Reduce the selling price by $180. This adjustment would enable the sale of 1700 units for the remainder of the year. Both the budgeted fixed costs and variable costs per unit will remain unchanged. b) Option 2: Lower the variable cost per unit by $60 by sourcing more cost-effective…
Prepare the Sales Budget of ABC Company. Complete the table using the following information.ABC Company had sales record during the first quarter. However, in the second quarter of 2020the company was suffered due to Covid-19 Pandemic and had sales of only 25% based on thefirst quarter. With the “new normal” condition of the country, the company is expecting to doublesales in the third quarter and a triple sales on the fourth quarter based on the second quartersales. All other data remain the same.
Suppose that the Sales in December 2019 were 86,536. The sales are expected to grow by 9% in January 2020, by 14% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 10%. The company's cash collection is as follows: 60% is collected in the same month and the remainder in the next month. What is the cash collection for June, 2020?
Happy Habanero Inc. has decided to purchase new capital equipment costing $540,000 cash in the next fiscal year. They also intend on selling their old equipment for $31,000 cash. Prepare the capital budget for Happy Habanero Inc. for their upcoming year-end (June 30, 2019). Do not enter dollar signs or commas in the input boxes. Use the negative sign for values that must be subtracted. Happy Habanero Inc. Capital Budget for year-ending June 30, 2019 Capital Expenditures $Answer Sale of Capital Assets $Answer Total Capital Expenditures $Answer
please help me with this?