Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a contribution format income statement for the next quarter.Variable expensesMilden CompanyContribution Format Income StatementFor the Next QuarterTotal variable expensesContribution marginFixed expensesTotal fixed expensesComplete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a traditional format income statement for the next quarter.Milden CompanyTraditional Format income StatementFor the Next QuarterSelling and administrative expensesTotal selling and administrative expenses Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter at a selling price of $67 per unit. Thecompany also gathered the following cost estimates for the next quarter:CostCost of good sold.Advertising expenseSales commissionsShipping expenseAdministrative salariesInsurance expenseDepreciation expenseCost Formula$34 per unit sold$190,000 per quarter.5% of sales$36,000 per quarter + $4.00 per unit sold$100,000 per quarter$11,000 per quarter$70,000 per quarterRequired:1. Prepare a contribution format income statement for the next quarter.2. Prepare a traditional format income statement for the next quarter.

An income statement is a company's revenues, expenses, and profitability over a period of time.

Answered: Milden Company is a merchandiser that…

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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A company reported the following data: • Sales price per unit: $10 • Fixed cost per month: $20,000 Variable cost per unit: $2 How many units must this company sell each month in order to reach a target profit of $50,000?
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Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs Expenses April May June Selling and marketing expenses (i) $200,000 $250,000 $300,000 Office insurance expense (ii) 800 800 800 Office depreciation expense 500 500 500 Property tax expense (iii) 700 700 700 Jenny’s payment policy for selling and administrative expenses is as follows: Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October). Property taxes are paid once a year in December. The projected total selling and admin expenses for April are: Group of answer choices None of the above $172,400 $202,000 $204,400
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)
Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 42 30% Contribution margin $ 98 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change?
Stratford Company distributes a lightweight lawn chair that sells for $ 40 per unit . Variable expenses are expenses total $ 672,000 annually . 40\% of sales , and fixed Required : Answer the following independent questions : 1. What is the product's CM per unit ?Refer to the original data . Assume that the company sold 44,000 units last year . The sales manager is convinced that a 7 % reduction in the selling price , combined with a increase in advertising expenditures , would increase annual unit sales by . Prepare two contribution format income statements : one showing the results of last year's operations , and one showing what the results of operations would be if these changes were made . ( Do not round intermediate calculations . Round " Per Unit " answers to 2 decimal places . ) 30\% Answer is not complete . Last Year Proposed Total Per Unit Total Per Unit Sales Less Variable expenses Contribution margin $ 24.00 $ 7.00 Less Fixed expenses Net operating income 5 - b . Would you…
Ozark Metal Company makes a single product that sells for $45.5 per unit. Variable costs are $29.1 per unit, and fixed costs total $65,355 per month. Required: a. Calculate the number of units that must be sold each month for the firm to break even. b. Assume current sales are $414,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate operating income if 5,300 units are sold in a month. d. Calculate operating income if the selling price is raised to $48.5 per unit, advertising expenditures are increased by $10,000 per month, and monthly unit sales volume becomes 6,000 units. e. Assume that the firm adds another product to its product line and that the new product sells for $22 per unit, has variable costs of $16 per unit, and causes fixed expenses in total to increase to $87,000 per month. Calculate the firm's operating income if 5,300 units of the original product and 4,200 units of the new product are sold each month. For the original product, use the…
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Milden Company is a merchandiser planning to sell 12,000 units next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $35 per unit sold $210,000 per quarter 6% of sales $28,000 per quarter + $9.10 per unit sold $145,000 per quarter $9,000 per quarter $76,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs Expenses April May June Selling and marketing expenses (i) $200,000 $250,000 $300,000 Office Insurance expense (ii) 800 800 800 Office depreciation expense 500 500 500 Property tax expense (iii) 700 700 700 Jenny’s payment policy for selling and administrative expenses is as follows: Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October). Property taxes are paid once a year in December. The cash payments for selling and admin expenses projected in the month of April are: Group of answer choices None of the above $202,000…

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