illmax Company plans to sell 3,50
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: The income statement is an annual statement produced at the end of the accounting year to know the…
Q: ales (54,600 units @ $34) $1,856,400 Total variable cost 1,064,700 Contribution margin $ 791,700…
A: At break-even point, net is $0. So the contribution margin is equal to the total fixed cost.
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement :— It is one of the financial statements that shows the profitability, total…
Q: Adams Enterprises produces a product with fixed costs of $49,900 and variable cost of $2.70 per…
A: Contribution margin is the difference between the sales and the variable cost, or in other words it…
Q: Head-First Company plans to sell 5,120 bicycle helmets at $74 each in the coming year. Unit variable…
A: Margin of safety is the measure which is determined by the entity by deducting the breakeven sales…
Q: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban…
A: The Contribution Format Income Statement makes it easy to see how much of a profit is made and fixed…
Q: Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans…
A: Break even point (Units)= Fixed cost / Contribution margin per unit Break even point ($)= Fixed…
Q: Helen corporation produces and soils a single product bate concerning that product appear below:…
A: A financial metric called net operating income (NOI) shows how profitable a company's core business…
Q: Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the variable cost is $44…
A: The break-even point is the point where the company is able to cover all its costs but does not make…
Q: Margin of Safety Head-First Company plans to sell 5,150 bicycle helmets at $68 each in the coming…
A: Margin of safety is defined as sales more than the break even sales, hence if we have sales more…
Q: Margin of Safety Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year.…
A: MARGIN OF SAFETYSales Above the Break-Even Point is Called Margin of Safety Sales.Margin of Safety…
Q: Markham Farms data Sales Variable costs 1.550 units at $63 per unit Fixed cost 1.550 units at $21…
A: Net income /(loss) = contribution - fixed cost =(Net sales - variable cost) - fixed cost
Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and…
A: To decide the business volume at the desired degree of benefit, the current equation for discovering…
Q: K-Too Everwear Corporation can manufacture mountain climbing shoes for $11 per pair in variable raw…
A: The production costs indicate the total of costs associated in the process of making product readily…
Q: Carter's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Karishtha Company have a plan to sell 10,000 shirts at $15 each in the coming year. Product costs…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: Head-First Company plans to sell 4,200 bicycle helmets at $71 each in the coming year. Variable cost…
A: Income statement :— It is one of the financial statements that shows profitability, total revenue…
Q: A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells…
A: The incremental cost is the difference between the cost at different level of production. The…
Q: Atlantic Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: ummer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are…
A: The break-even sales are the sales where the business earns no profit or loss during the period. The…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: The income statement is prepared to record the revenue and expense of the current period. The net…
Q: Harry Company produces shoes. Harry plans to sell 29000 pairs of shoes at a selling price of $59 per…
A: Income Statement is a part of financial statements in which the revenues and expenditures…
Q: Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for…
A: The cost of manufacturing is directly correlated with the type of cost accounting known as variable…
Q: Suppose that Patron Company sells a product for $24. Unit costs are as follows: Direct materials…
A: 1. Variable Cost per Unit: The cost that varies with the level of production for each unit.2.…
Q: If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to…
A: A break even point is the production level at which the company is able to recover all of its fixed…
Q: Shock Company manufactures electronic equipment. The following is a summary of its basic cost and…
A: Operating income = Total contribution - Fixed cost
Q: White Lake Inc. produces and sells a single product. Data concerning that product appear below:…
A: 1. BREAK EVEN SALES : = (FIXED COST X SALES) / CONTRIBUTION PER UNIT 2. UNITS TO SELL TO ATTAIN…
Q: Head-First Company plans to sell 4,950 bicycle helmets at $72 each in the coming year. Unit variable…
A: Margin of Safety = Total Sales - Breakeven Sales
Q: Maple Enterprises sells a single product with a selling price of $60 and variable costs per unit of…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.Variable cost…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is…
A: Break-even sales is the amount of sales where the net income is zero. Contribution margin is given…
Q: Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the…
A: Contribution margin is defined as the excess of the selling price over the variable cost incurred in…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: A segmented contribution format income statement by product provides a detailed breakdown of revenue…
Q: Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat…
A: Special order decisions are those decisions which helps in deciding whether to accept the special…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Aqua Primavera, Inc. has provided the following information for the year: Units produced 6,000…
A: Unit product cost under variable costing is based on direct material , labor and variable overhead.…
Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable…
A: Break-even point in units can be defined as the unit at which there is no profit or loss situation.…
Q: Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Contribution format income statement help us to understand the contribution margin and the variable…
Q: 3. JRT, Inc., predicts the following unit costs of making and selling its single product at a volume…
A: Break-even-point: The break-even point is the point where a company’s revenues equal its costs. The…
Q: Blossom Company makes radios that sell for $40 each. For the coming year, management expects fixed…
A: Solution: Contribution margin ration = Contribution margin / Sales price = (40 - 32) / 40 = 8/40 =…
Q: Eddie Barzoon Inc. produces a variety of products. One division makes extremely realistic Halloween…
A: Part a) Contribution per unit = contribution/units = $6864000/65000 = $105.60 Break even point =…
Q: A. Break-even point in units Assume that you are part of the accounting team for Koller Computing.…
A: Contribution=Sales-Variable cost
Units to Earn Target Income
Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense).
Required:
1. Calculate the number of pairs of shoes Chillmax must sell to earn operating income of $81,900.
2. Check your answer by preparing a contribution margin income statement based on the number of units calculated.
Step by step
Solved in 3 steps with 1 images
- Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 10.00 $2.40 $ 131,000 Greengrow $ 34.00 $14.00 $ 31,000 Last year the company produced and sold 42,000 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban GreengrowVandenberg, 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 $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: 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 = ______ : _____ 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. Break-even ceiling fans ______ Break-even table fans ______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement 2. If…Margin of Safety Head-First Company plans to sell 5,180 bicycle helmets at $72 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,833. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue.
- Pam-Tees Company plans to sell 11,000 T-shirts at $15 each in the coming year. Product costs include: Direct materials per T-shirt $4.75 Direct labour per T—shirt $2.25 Variable overhead per T- shirt $0.50 Total fixed factory overhead $32,000 Variable selling expense is the redemption of a coupon, which averages $0.70 per T-shirt; fixed selling and administrative expenses total $17,000. Required: Calculate the: 1. Variable product cost per unit 2. Contribution margin ratio (rounded to four significant digits) 3. Total fixed expense for the year 4. Break Even point in quantity (Q) 5. Margin of Safety in Quantity (Q)Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 10.00 $ 31.00 Variable expenses per unit $ 2.40 $ 10.00 Traceable fixed expenses per year $ 130,000 $ 31,000 Last year the company produced and sold 38,000 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $101,000. Required: Prepare a contribution format income statement segmented by product lines.Manly Beach Enterprises projects the following information for the coming year. Sales Production 1,900 units 2,000 units Selling price per sewing machine Total variable manufacturing cost Total fixed manufacturing cost Marketing and administrative cost (40% variable based on sales) $200 $160,000 $60,000 $80,000 a. Determine the projected net income using absorption costing: $ b. Determine the projected net income using variable costing: $
- Head-First Company plans to sell 4,400 bicycle helmets at $84 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 5.50 Variable factory overhead per helmet 2.00 Total fixed factory overhead 20,000 Variable selling expense is a commission of $2.90 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year.Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $30,000 and fixed selling and administrative expense is $48,000. Required: 1. Calculate the variable cost ratio. % 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. Enter amounts as positive numbers. Chillmax Company Contribution Margin Income Statement For the Coming Year Percent of Sales Sales Total variable cost Total contribution margin Total fixed cost Operating incomeWheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Select one: The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? a. $39,000 b. $78,000 C. 1. $62,000 $20 3 d. they are all wrong 6 10 $39
- Variable Cost, Fixed Cost, Contribution Margin Income Statement Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product costs include: Direct materials per pair $ 12 Direct labor per pair 4 Variable factory overhead per pair Total fixed factory overhead 30,000 Variable selling expense is a commission of $3 per pair; fixed selling and administrative expense totals $48,000. Required: 1. Calculate the total variable cost per unit. $ 2. Calculate the total fixed expense for the year. $ 3. Prepare a contribution margin income statement for Chillmax Company for the coming year. Enter all amounts as a positive number. Chillmax Company Contribution Margin Income Statement For the Coming Year Total Per Unit Sales 2$ Total variable cost Total contribution margin $ Total fixed cost Operating incomeRoyal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 9.00 $ 2.50 $ 135,000 Greengrow $33.00 $ 13.00 $ 49,000 Last year the company produced and sold 36,500 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban GreengrowRoyal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $9.00 $ 2.60 $ 137,000 Product Greengrow $36.00 $ 10.00 $ 38,000 Last year the company produced and sold 36,500 units of Weedban and 17,500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
