Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.)Breakeven saleseTextbook and MediaSave for Later(b2)SWhat is Pharoah's margin of safety?Margin of safety$ Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company's income statement from last month is as follows:Sales revenueVariable expensesContribution marginFixed expensesOperating income(a)Total$756,000Variable cost ratio264,600491,400282,750$208,650Contribution margin ratioPer Unit$5418.90What is Pharoah's contribution margin ratio? Its variable cost ratio? (Round ratios to 2 percentage places, eg. 0.38-38%)$35.10%%6

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Pharoah sells a learning system that…

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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Using the information in the example we have been using, how much would net income be if the company sold 500 bikes? (Reminder: Sales Price = $500, Variable Costs = $300)
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing expense $254,400.00 4 Selling expense 21,200.00 5 Administrative expense 63,600.00 339,200.00 6 Contribution margin $84,800.00 7 Fixed costs: 8 Manufacturing expense $5,000.00 9 Selling expense…
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Publix sold 1,000 units last month which yielded the income statement below. Sales $20,000 Variable Expenses 12,000 Contribution Margin 8,000 Fixed Expenses 6,000 $2,000 Net Income Answer the questions that follow using the given information. 1. What is Publix's contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the break-even point in units? 4. What is the break-even point in dollars? 5. How many units have to be sold to reach a target profit of $5,000?
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The contribution margin income statement of Unique Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Data table Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs: Cost of Goods Sold Selling Costs Administrative Costs Contribution Margin Fixed Costs: Selling Costs Administrative Costs Operating Income $ 32,300 17,200 1,300 42,210 14,070 $ $ - 127,000 50,800 76,200 56,280 19,920 Requirements Unique sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.10, with total variable cost of $1.24 per dozen. A dozen custard-filled donuts sells for $7.20, with total variable cost of $2.88 per dozen. d-filled donuts 1. Calculate the weighted-average contribution margin. 2. Determine Unique's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by preparing a summary contribution margin income…
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Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,180,000 1,248,000 2,932,000 2,180,000 $ 752,000 Answer is complete but not entirely correct. $ (52,100) Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? Financial (disadvantage) Department Hardware $ 3,100,000 830,000 2,270,000 1,380,000 $ 890,000 A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 12% decrease in the sales of the Hardware Department. Linens $ 1,080,000 418,000 662,000 800,000 $ (138,000)
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Carlos's Bike Company produces two lines of cycles, Trikes and Bikes. At the end of last year, the income statement was as follows: Trikes $135,000 102,250 32,750 15,000 20,000 $(2,250) Sales revenue Variable expenses Contribution margin Direct expenses Allocated expenses Segment margin What was the company's total operating income? O $29,750 O $25,250 O $2,250 O $27,500 Bikes $250,000 162.500 87,500 35,000 25,000 $27,500
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,070,000 1,273,000 2,797,000 2,220,000 $ 577,000 Financial (disadvantage) I Department Hardware $ 3,060,000 870,000 2,190,000 1,370,000 $ 820,000 Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department? A study indicates that $372,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 18% decrease in the sales of the Hardware Department. Linens $ 1,010,000 403,000 607,000 850,000 $ (243,000)
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