Oriole Inc. earned operating income of $110,000 during 2021. The company wants to earn operating income of $154,000 during2022. Its fixed costs are expected to be $61,600, and variable costs are expected to be 30% of sales.(a)Determine the required sales to meet the target operating income during 2022.Required sales $

Income statement is a financial statement that shows profitability, total revenue and total…

Answered: Oriole Inc. earned operating income of…

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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The President of Leyesa Corporation was informed that production costs were 3% lower in 2023 than that of 2022. Statistics shown by the selling division indicated that the quantity sold in 2023 was significantly greater than quantity sold in 2022. The President is wondering why, despite the favorable information provided by the selling and production division, gross margin for 2022 was still higher than that of 2023 as shown below: December 31, 2020 December 31, 2019 Net Sales 1,305,00 1,160,000 Cost of Sales 843, 900 696,000 Gross Margin 461, 100 464,000
In 2019, Crane Company sold 3000 units at $250 each. Variable expenses were $140 per unit, and fixed expenses were $780000. The same variable expenses per unit and fixed expenses are expected for 2020. If Crane cuts selling price by 4%, what is Crane’s break-even point in units for 2020? 7386. 7091. 7500. 7800.
Victoria Company reports the following operating results for the month of April. VICTORIA COMPANYCVP Income StatementFor the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 270,000 30.00 Contribution margin 180,000 $20.00 Fixed expenses 150,000 Net income $30,000 Management is considering the following course of action to increase net income: Reduce the selling price by 4%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%.Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.)(a) Assuming no changes to selling price or costs. Break-even point ? units Break-even point $ ? Margin of safety $ ? (b1)…
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs $2,160,000 1,728,000 432,000 324,000 Pretax income $ 108,000 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co's break-even point in sales dollars. X Answer is complete but not entirely correct. 1. Contribution margin 2$ 60 per unit 2. Contribution margin ratio % 25 3. Break-even point 7,200 X units 4. Break-even sales dollars $ 1,620,000 x < Prev 13 14 of 1 ост 20
Current Attempt in Progress Crane Company had $290,600 of net income in 2021 when the unit selling price was $154, the unit variable costs were $94, and the fixed costs were $573,400. Management expects per unit data and total fixed costs to remain the same in 2022. The president of Crane Company is under pressure from stockholders to increase net income by $57,600 in 2022. (a) Your answer is correct. Compute the number of units sold in 2021. Sales in 2021 eTextbook and Media 14400 units Attempts: 1 of 3 used
Matthew's Fish Fry has a monthly target operating income of $6600. Variable expenses are 80% of sales and monthly fixed expenses are $840. What is the monthly margin of safety in dollars if the business achieves its operating income goal? Question 20 options: $29,760 $37,200 $33,000 $41,400
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Compute the new operating income (profit) if sales are 10% higher than expected.
Q3The ABC Company manufactures three products – product X, product Y and product Z. The variable expenses and sales prices of all the products are given below: Product X Product Y Product Z Sales per Unit Variable cost per Unit 300 200 400 150 100 200 The total fixed expenses of the company are OMR 90,000 per month. For the coming month. ABC expects the sale of three products in the following ratio: Product X: 20%; Product Y: 40%; Product Z: 40% Required: Compute the break-even point of ABC company in units and OMR for the coming month.
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 Fixed costs 480,000 Pretax income $ 156,000 If the company raises its selling price to $320 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars. 1. Contribution margin per unit 2. Contribution margin ratio 3. Break-even point units 4. Break-even sales dollars
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Calculate the Following: 2022 Revenue: $600,000 Net units sold in 2022: 3,000 access points 2022 ending total units: 3,500 access points Monthly revenue per unit (ARPU) = ? Monthly gross margin per unit (AMPU) = ? One time cost per unit (access point and licensing): $400 One time cost for sales compensation per unit: $100 One time cost per unit to install service: $84 Monthly support costs per unit: $1.50 Payback period per unit sold = ? Contract term: 36 months Instructions: Based upon fictitious data points in the above table please calculate: 1. Monthly revenue per unit (ARPU) 2. Monthly Gross Margin per unit ( AMPU) 3. Payback period per unit sold (How long will it take in months to start making profit off of 1 unit sold)? Once calculated explain your findings in a short analysis and recommendations you have associated with the findings.

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