Omega Corporation prepared the following tentative budgetfor next month:• • Sales Revenue = $600,000•Selling Price per Unit = $10•Variable Expenses= $360,000•Fixed Expenses = $200,000The sales manager proposes that the unit selling pricecould be increased by 15%, with an expected volumedecrease of only 12%.Compute the budgeted net income if these changes areincorporated.

Step 1: Definition of Budgeted Net IncomeExplanation: Budgeted Net Income is the projected profit of…

Answered: Omega Corporation prepared the…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

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Similar questions

Review the completed master budget and answer the following questions: Is Ranger Industries expecting to earn a profit during the next quarter? If so, how much? Does the company need to borrow cash during the quarter? Can it make any repayments? Explain. (Carefully review rows 74 through 80.)
Using sensitivity analysis Caputo Company prepared the following budgeted income statement for the first quarter of 2018: Caputo Company is considering two options. Option 1 is to increase advertising by $1,100 per month. Option 2 is to use better-quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 55% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20%. Requirements Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $10,000. Round all calculations to the nearest dollar. Which option should Caputo choose? Explain your reasoning.
Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root'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.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit 7.5 2.7 Root Industries Flexible Budget Performance Report For the Year Ended…
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
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.)
Top managers of Juda Industries predicted 2025 sales of 14,500 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $13.00 each. Variable costs were budgeted at $3.20 per unit, and actual variable costs were $3.30 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $2,000. Prepare Juda Industries' 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. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.) Juda Industries Flexible Budget…
The firm’s tentative budget for next year includes: Sales- ₱400,000; Variable Expenses-₱250,000; Fixed Manufacturing Overhead- ₱80,000; Selling and Administrative Expenses-₱150,000. With a tax rate of 25%, the forecasted net income is ₱52,500. Mr. Bong, the marketing manager proposed an aggressive advertisement costing additional ₱25,000 that he predicts will result in a 25% unit sales increase. Assuming that Bong’s proposal will be incorporated into the budget, what should be the increase in the budgeted net income for next year? a. ₱12,000 b. ₱25,000 c. ₱103,125 d. ₱56,250 e. ₱37,500
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Please help me
Prepare budgets for your business for the upcoming five years. Specifically, you need to prepare the following budgets: Make reasonable assumptions about the safety stock and prepare the production budgets for each of the upcoming five years. You may need to estimate unit sales for the five year for this budget.
Coronado Company estimates that unit sales will be 11,800 in quarter 1, 16,520 in quarter 2, 17,700 in quarter 3, and 21,240 in quarter 4. The unit selling price is $70. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2025,

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