Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. income statement from last month is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $756,000 264,600 491,400 282,750 $208,650 Per Unit $54 18.90 $35.10

Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. income statement from last month is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $756,000 264,600 491,400 282,750 $208,650 Per Unit $54 18.90 $35.10

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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Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 4, 000 meals: Amount Per Unit Sales revenue $ 28,000 $7.00 costs of meals produced 20,000 5.00 Gross Profit $ 8,000 $ 2.00 Administrative costs 3,200 .08 Operating profit $ 4,800 $ 1.20 Fixed costs included in this income statement are $6,400 for meal production and $800 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $4.00 per meal for 300 meals on April…
The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: Demand Next Selling Price year (units) per Unit 61,000 $ 20.00 53,000 46,000 Direct Materials $ 5.40 $2.20 $ 8.09 $ 3.10 $ 6.50 $33.50 44,400 $14.00 336,000 $ 9.10 $ 4.30 Product Debbie Trish Sarah Mike Sewing kit The following additional information is available: a. The company's plant has a capacity of 113,140 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pa rate will be $9 per hour. c. Fixed manufacturing costs total $630,000 per year. Variable overhead costs are $2 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor-hours are used to manufacture one unit of each of the company's five products? 2. How much variable overhead…
How many T-shirts must the company sell this year in order to earn $56,640 in net income? (Use the rounded contribution margin per unit calculated in the previous part to calculate Target Sales units. Round Target Sales units to 0 decimal places, e.g. 25,000.) W Promotions sells T-shirts imprinted with high school names and logos. Last year the shirts sold for $20.00 each, and variable costs were $8.50 per shirt. At this cost structure, the breakeven point was 24,600 shirts. However, the company actually earned $24,840 in net income.This year, the company is increasing its price to $22 per shirt. Variable costs per shirt will increase by 20%, and fixed expenses will increase by $30,980. The tax rate will remain at 40%.
Edward Food Processing Company is a wholesale distributor of biscuits in Holborn.The Company has achieved steady growth over the past few years while Biscuitprices have been on the increase. The Company is planning its budget for the nextfinancial year. Presented below are the data used to project the current year’s aftertax income of £110,400. £Average Sales Price per Box 4.00Average variable costs per Box Cost of Biscuits 2.00 Profit on sale 0.40 Total 2.40Annual fixed cost Selling 160,000 Administrative 280,000 Total 440.000Expected annual sales volume (390,000 boxes) £1,560,000Tax rate 20%Biscuit manufacturers have announced that they will increase prices of theirproducts by an average of 15% in the coming year due to increase in material andlabour costs. Edward Food Processing expects same rates or levels as the currentyear. Required: Determine the Volume of sales the company must achieve in the comingyear to maintain the same net income as projected for the current yearif the…
Unit Activity: Mathematical Models and Consumer Finance Part A Jenna’s monthly monetary income is $1,200. Her total spending last month was $1,400. Why would Jenna need a budget? 15px Space used (includes formatting): 0 / 15000 Part B Maria has $3,000 in the bank, has a home worth $150,000, and has a $75,000 home loan. She also has $10,000 in investments and a $15,000 student loan. What is Maria’s net worth? Show your work. 15px Space used (includes formatting): 0 / 15000 Part C Nina is trying to decide between two jobs. The first job pays $10 an hour. The second job offers a $20,000 a year salary, which would equal a gross pay of $769 every two weeks. Nina would work 40 hours a week at both jobs. Nina decides to take the salaried job because she thinks it pays better. Evaluate Nina’s decision. Explain your answer. 15px Space used (includes formatting): 0 / 15000 Part D Lola is 15 years old and works in a factory every weekend. Why might…
Laredo, Inc. has a contribution margin ratio of 55%. This month, sales revenue was $186,000, and profit was $28,000. If sales revenue increases by $45,000, by how much will profit increase? Multiple Choice $1,540 $5,500 $21,950 $24,750
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