CoP5-3A Dousmann Corp.'s sales slumped badly in 2014. For the first time in its history, itoperated at a loss. The company's income statement showed the following results fromselling 500,000 units of product: sales $2,500,000; total costs and expenses $2,600,000; andnet loss $100,000. Costs and expenses consisted of the amounts shown below.act(LCTotalVariableFixedCost of goods soldSelling expensesAdministrative expenses$2,140,000250,000210,000$1,540,00092,00068,000$600,000158,000142,000$2,600,000$1,700,000$900,000Management is considering the following independent alternatives for 2015.1. Increase unit selling price 20% with no change in costs, expenses, and sales volume.2. Change the compensation of salespersons from fixed annual salaries totaling $150,000to total salaries of $60,000 plus a 5% commission on sales.Instructions(a) Compute the break-even point in dollars for 2014.(b) Compute the break-even point in dollars under each of the alternative courses of action.(Round all ratios to nearest full percent.) Which course of action do you recommend?

Name: CoP5-3A Dousmann Corp.'s sales slumped badly in 2014. For the first t
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: CoP5-3A Dousmann Corp.'s sales slumped badly in 2014. For the first time in its history, itoperated at a loss. The company's income statement showed the following results fromselling 500,000 units of product: sales $2,500,000; total costs and expens

Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Business

Accounting

P5-3A Dousmann Corp.'s sales slumped badly in 2014. operated at a loss. The company's income statement showed the following results from selling 500,000 units of product: sales $2,500,000; total costs and expenses $2,600,000; and net loss $100,000. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,140,000 250,000 210,000 $1,540,000 92,000 68,000 $600,000 158,000 142,000 $900,000 $2,600,000 $1,700,000 Management is considering the following independent alternatives for 2015. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions (a) Compute the break-even point in dollars for 2014. (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.) Which course of action do you recommend?

P5-3A Dousmann Corp.'s sales slumped badly in 2014. operated at a loss. The company's income statement showed the following results from selling 500,000 units of product: sales $2,500,000; total costs and expenses $2,600,000; and net loss $100,000. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,140,000 250,000 210,000 $1,540,000 92,000 68,000 $600,000 158,000 142,000 $900,000 $2,600,000 $1,700,000 Management is considering the following independent alternatives for 2015. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions (a) Compute the break-even point in dollars for 2014. (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.) Which course of action do you recommend?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

I don't understand how to get the percentage for the Sales to start off.... Income statement information for Einsworth Corporation follows: Sales $596,000 Cost of goods sold 149,000 Gross profit 447,000 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth CorporationVertical Analysis of the Income Statement Amount Percentage Sales $596,000 fill in the blank 1% Cost of goods sold 149,000 fill in the blank 2 Gross profit $447,000 fill in the blank 3%
Please help me
The events and transactions of Dever Corporation for the year ending December 31, 2014, resulted in the following data. Cost of goods sold Net sales Other income and expense Selling and administrative expenses Income from operations of plastics division Gain from disposal of plastics division R$ 2,600,000 4,400,000 4,000 1,100,000 70,000 500,000 Analysis reveals that: 1. All items are before the applicable income tax rate of 30%. 2. The plastics division was sold on July 1. 3. All operating data for the plastics division have been segregated. 4. Other income and expense is comprised of interest expense of R$6,000 and dividend revenue of R$2,000. Instructions Prepare an income statement for the year.
Po.3.
please solve question 4 to question 7. thanks
A company had $270,000 in sales; $150,000 in goods available for sale; ending finished goods inventory of $30,000, and selling and administrative expenses of $65,000. Which of the following statements is true？ 1. Net income was 28% of sales 2. The costs of goods sold was $137,000 3. The beginning finished goods inventory is not determinable. 4. The gross income was $93,000
The following revenue-based profit functions are for X Company's only two products, A and B, last year: Product A: PA 0.26RA- $32,000 Product B: P0.43R- $63,000 Revenue from sales of A was $220,000, and revenue from sales of of B was $150,000. Assuming there is no change in the product mix, what must total revenue be next year in order for X Company to break even [round the weighted average contribution margin rate to two decimal places? OA: $287,879 OB: $336,818 C: $394,077 OD: $461,070 OE: $539,452 OF: $631,159
None
Sisyphus Inc. records total sales of $657,500 in the current period, with a cost of goods sold of $389,000 . Sisyphus expects 4% of sales to be returned. How much in net sales will Sisyphus recognize for the current period? Group of answer choices $373,400 $268,500 $631,200 $657,500 $257,760 The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow
calculate the fixed and variable components of the selling and administrative expenses by dividing the change in cost of the selling and administrative expenses between 2009 and 2010 to change in sales between 2009 and 2010 and use it to determine the fixed and variable components of the cost of the selling and administrative expenses . Saunders Corporation (amounts in millions of dollars) 2009 2010 Sales 8,296 8,871 Cost of Goods Sold (5,890) (6,290) Selling and Administrative Expenses (1,788) (1,714) Operating Income before Income Taxes 618 867
None
The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses Contribution margin Fixed expenses Net income (loss) (b) Answer the following independent questions. (c) What was the company's break-even sales dollars in 2021? 735,000 Your answer is correct. eTextbook and Media 315,000 360,000 ($45,000) Break-even point in sales dollars $ Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Medial Number of units sold 1,200,000 12,000 Attempts: 3 of 5 used If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unchanged, how many units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 52.75. Final answer to O decimal places, e.g.…