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nswer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage

nswer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage

FINANCIAL ACCOUNTING
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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Please answer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage . Thx ( please provide explanations).
Sales 2,880,000 Cost of goods sold: Direct materials 600,000 Direct labor 360,000 Factory overhead 422,000 1,382,000 Cost of goods sold Gross profit 1,498,000 Expenses: Selling expenses: Sales salaries and commissions Advertising 116,000 Travel 4,000 Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers' salaries 325,000 Supplies Miscellaneous administrative expense Total administrative expenses Total evnenses 100% 99+ PrtSc Insert Delete FO F10 F11 F12 & Backspace Num Lock 8. Y
Transcribed Image Text:Sales 2,880,000 Cost of goods sold: Direct materials 600,000 Direct labor 360,000 Factory overhead 422,000 1,382,000 Cost of goods sold Gross profit 1,498,000 Expenses: Selling expenses: Sales salaries and commissions Advertising 116,000 Travel 4,000 Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers' salaries 325,000 Supplies Miscellaneous administrative expense Total administrative expenses Total evnenses 100% 99+ PrtSc Insert Delete FO F10 F11 F12 & Backspace Num Lock 8. Y
Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit, Maximum sales within the relevant rang 18,000 units. Required: 1. Prepare an estimated income statement for 20Y7. 99+ 100% PriSc Insert Dalete F9 F10 FII F12 Backspace Num 9 Lock
Transcribed Image Text:Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price of $240 a unit, Maximum sales within the relevant rang 18,000 units. Required: 1. Prepare an estimated income statement for 20Y7. 99+ 100% PriSc Insert Dalete F9 F10 FII F12 Backspace Num 9 Lock
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