1R x 8C3456=7-8=9101112137142File16Dv2312Jay Corporation has decided to prepare contribution income statements for internal planning.7717 20221819202122HomevAQuarter 1Quarter 2Quarter 3Quarter 4Review View Help✓11 v BEA ... Ev abX✓ fx Accessibility tab summary: Information about Jay Corporation is presented in row 2. Financial information of the comFKNBudgeted information for Quarter 1 of 2024:Sales in unitsSales price per unit2023InsertQuarter 1Quarter 2Quarter 3Quarter 4CalibriRent Expense (per quarter)Depreciation Expense (per quarter)Draw-15 Shipping has been determined to be a mixed cost with the following total costs and units:→BAfter analyzing expenses, the company has determined the following cost patterns.Cost of Goods Sold (per unit)$29.00Sales Commissions (per dollar of sales)9.50%Administrative Salaries (per quarter)$45,000$27,000$36,000Formulas242525262728 use the data to answer the following17,000$48.00CTotal Cost$67,000$94,000$89,800$92,600MData$72,500$80,000$84,000$100,000Units12,50021,00013,80020,000D13,70014,00014,30022,500EGHEditing ✓GeneralLM-0.000 3435361R x 8C373839404142434445Dv6044High level of activityLow level of activityChange in activityvariable cost per unitFixed cost portion:Total cost at high level of activityLess: Variable cost elementTotal fixed costCost of goods soldSales commissionsShipping expense555657 Contribution margin5859✓ ✓ Av.. Ev abX✓ fx Accessibility tab summary: Information about Jay Corporation is presented in rowCJUnitsTotal variable expensesCalibri46 2. Prepare a contribution margin income statement for Quarter 1 of 2024.4748495051Sales52 Variable expenses:5354Fixed expenses:Adminstrative salariesRent expenseB11 v BTotal CostJay CorporationBudgeted Income StatementFor 2024, Quarter 1DEGH+I

Contribution margin income statement is prepared for internal purpose only. The main objective of preparing contribution margin income statement is to know the contribution margin of the product so that break even analysis can be done. Breakeven analysis helps management to know the sales level the firm must achieve in order to cover all its costs.The variable shipping cost per unit and fixed portion of shipping cost can be determined as follows: Formula Snip:The budgeted contribution margin income statement can be prepared as follows: Formula snip:

Business

Accounting

Jay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of 2024: Sales in units Sales price per unit after analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) Shipping has been determined to be a mixed cost with the following total costs and units: 2022 17,000 $48.00 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $45,000 $27,000 $36,000 Total Cost $67,000 $94,000 $89,800 $92,600 Units 12,500 21,000 13,800 20,000

Jay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of 2024: Sales in units Sales price per unit after analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) Shipping has been determined to be a mixed cost with the following total costs and units: 2022 17,000 $48.00 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $45,000 $27,000 $36,000 Total Cost $67,000 $94,000 $89,800 $92,600 Units 12,500 21,000 13,800 20,000

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

1R x 8C
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=
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=
9
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File
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1
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Jay Corporation has decided to prepare contribution income statements for internal planning.
77
17 2022
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Home
v
A
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Review View Help
✓11 v B
EA ... Ev ab
X✓ fx Accessibility tab summary: Information about Jay Corporation is presented in row 2. Financial information of the com
F
K
N
Budgeted information for Quarter 1 of 2024:
Sales in units
Sales price per unit
2023
Insert
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Calibri
Rent Expense (per quarter)
Depreciation Expense (per quarter)
Draw
-
15 Shipping has been determined to be a mixed cost with the following total costs and units:
→
B
After analyzing expenses, the company has determined the following cost patterns.
Cost of Goods Sold (per unit)
$29.00
Sales Commissions (per dollar of sales)
9.50%
Administrative Salaries (per quarter)
$45,000
$27,000
$36,000
Formulas
24
25
25
26
27
28 use the data to answer the following
17,000
$48.00
C
Total Cost
$67,000
$94,000
$89,800
$92,600
M
Data
$72,500
$80,000
$84,000
$100,000
Units
12,500
21,000
13,800
20,000
D
13,700
14,000
14,300
22,500
E
G
H
Editing ✓
General
L
M
-0
.00
0

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36
1R x 8C
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High level of activity
Low level of activity
Change in activity
variable cost per unit
Fixed cost portion:
Total cost at high level of activity
Less: Variable cost element
Total fixed cost
Cost of goods sold
Sales commissions
Shipping expense
55
56
57 Contribution margin
58
59
✓ ✓ Av.. Ev ab
X✓ fx Accessibility tab summary: Information about Jay Corporation is presented in row
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Units
Total variable expenses
Calibri
46 2. Prepare a contribution margin income statement for Quarter 1 of 2024.
47
48
49
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51
Sales
52 Variable expenses:
53
54
Fixed expenses:
Adminstrative salaries
Rent expense
B
11 v B
Total Cost
Jay Corporation
Budgeted Income Statement
For 2024, Quarter 1
D
E
G
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