Price, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Pricemarkets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.For 2015, Price marketing managers project monthly sales of 420,000 12-ounce bottles and 170,000 1-galloncontainers. Average selling prices are estimated at $0.20 per 12-ounce bottle and $1.50 per 1-gallon container. Howmuch is the total budgeted revenue for Price, Inc., for the year ending December 31, 2015?Answer:

The sales budget is prepared to estimate the sales revenue for the period. The budget helps to…

Answered: Price, Inc., bottles and distributes…

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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Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $3,200 each. Variable selling expenses are $300 per ATV. The remaining selling expenses are fixed. Administrative expenses are 60% variable and 40% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,910 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales Cost of goods sold Gross margin $630,400 376,270 254,130 Operating expenses Selling expenses $160,000 40,600 Administrative expenses Net income 200,600 $53,530 Required: 1. Prepare an income statement for the current year using the contribution margin format. (Do not round intermediate calculations. Round contribution margin per ATV value to the nearest whole number.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 < Prev Microsoft Store Next O G
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