None Perreth Dry Cleaners has capacity to clean up to 8,000 garments per month.View the cost schedule.Assume that Perreth charges customers $7 per garment for dry cleaning. Prepare Perreth's projected income statement if 4,400 garments are cleaned in March. First, prepare theincome statement using the traditional format; then, prepare Perreth's contribution margin income statement.Begin by preparing the projected income statement using the traditional format. (Use a minus sign or parentheses to indicate a deduction or loss.)Perreth Dry CleanersProjected Income StatementCost schedulere help.Month Ended March 315,000Garments6,500Garments8,000GarmentsTotal variable costs$3,250 $4,225 $5,200Total fixed costs15,60015,60015,600$18,850 $19,825 $20,800Total operating costsVariable cost per garment $0.65 $0.65 $0.65Fixed cost per garment3.122.401.95$3.77 $3.05 $2.60Average cost per garmentPrintDone- XClear allCheck answer

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Pierce Drycleaners has capacity to clean up to 6,000 garments per month. E (Click the icon to view the cost schedule.) Assume that Pierce charges customers $12 per garment for dry cleaning. Prepare Pierce's projected income statement if 4,220 garments are cleaned in March. First, prepare the income statement using the traditional format; then prepare Pierce's contribution margin income statement. Data table swers to the nearest whole dollar. Enter losses with parentheses or a 4,500 Garments 3,000 6,000 Garments Garments Total variable costs $ 2,100 $ 3,150 $ 4,200 Total fixed costs 10,800 10,800 10,800 $ 12,900 $ 13,950 $ 15,000 Total operating costs Variable cost per garment 2$ 0.70 $ 0.70 $ 0.70 3.60 2.40 1.80 Fixed cost per garment $ Average cost per garment 4.30 $ 3.10 $ 2.50 Print Done
Accel Corp makes two products: C and D. The following data have been summarized (Click the icon to view the data.) Accel Corp desires a 28% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Accel have to charge the customer to achieve that gross profit? Round to two decimal places Begin by selecting the formula to compute the amount that the company should charge for each product Direct labor cost per unit Direct materials cost per unit Indirect manufacturing cost per unit Product cost as a percentage of sales price Target gross profit percentage Total product cost per unit Get more help. Clear all Show work Required sales price per unit Check answer
Price Drycleaners has capacity to clean up to 9,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, David Price, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 6,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) Total variable costs 6,000 Garments 7,500 Garments 9,000 Garments $ 6,750 Total fixed costs Total operating costs Variable cost per garment $ 1.80 Fixed cost per garment Average cost per garment
Price Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Price, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 3,500 Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,000 Garments $ 2,450 1.80 5,000 Garments
The cost data for BC Billing Solutions for the year 2020 is as follows: A. Using the high-low method, express the company’s overtime wages as an equation wherexrepresents number of invoices processed. Assume BC has monthly fixed costs of $3,800. B. Predict the overtime wages if 9,000 invoices are processed. D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $160,000, its total variable expenses were $78,600, and its total fixed expenses were $55,500. Required: a. Construct the company's contribution format income statement for April. b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. Complete this question by entering your answers in the tabs below. Required a Required b Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) 0 0
Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. required: 1: How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? 2: Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. 3) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?
Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Revenues Costs: Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Total C Per Unit For 2019, Guppy buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. Calculate Guppy's operating income for 2019.
The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs +(9) x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) X Monthly Overhead Costs and Billable Hours Data Overhead Costs Billable Hours $315,000 3,000 $360,000 4,000 $385,000 5,000 $438,000 6,000 $520,000 7,000 $540,000 8,000 D Print Done
In July, Meers Corporation sold 3,200 units of its only product. Its total sales were $108,800, its total variable expenses were $51,200, and its total fixed expenses were $35,300. Required: a. Construct the company's contribution format income statement for July. b. Redo the company's contribution format income statement assuming that the company sells 3,650 units. Complete this question by entering your answers in the tabs below. Required a Required b Construct the company's contribution format income statement for July. Note: Do not round intermediate calculations. 0 $ 0
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