Profit-Volume ChartFor the coming year, Loudermilk Inc. anticipates fixedcosts of $600,000, a unit variable cost of $75, and a unitselling price of $125. The maximum sales within therelevant range are $2,500,000.a. Determine the maximum possible operating loss.b. Compute the maximum possible operating profit.c. Construct a profit-volume chart on paper. Indicatewhether each of the following levels of sales is in theoperating profit area, operating loss area, or at thebreak-even point.4,800 units8,000 units12,000 units16,000 units20,000 unitsd. Estimate the break-even sales (units) by using theprofit-volume chart constructed in part (c).units

Answer a. Maximum Operating Loss will occur when sale is $0. If Sale is $0, then Variable Cost will…

Answered: Profit-Volume Chart For the coming…

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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Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $140, a unit variable cost of $70, and fixed costs of $476,000. Instructions: 1. Compute the anticipated break-even sales in units.fill in the blank 1 units 2. Compute the sales (units) required to realize operating income of $217,000.fill in the blank 2 units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 13,600 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $1,330,000 $1,190,000 $952,000 $714,000 $574,000 4. Determine the probable operating income (loss) if sales total 10,900 units. If required, use the minus sign to indicate a loss.$fill in the blank 8
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Compute the new operating income (profit) if sales are 10% higher than expected.
If forecasted sales of #150,000 ,Total cost of sales $123,000 includes Variable cost of 100,500 and variable of 23,000 equals total cost sales of $123,000 what is Income before income taxes total
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 Assets 13,500 Net income $15,500 Total $9,800 The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice O O O $24,384 $16,655 $16,642 Balance Sheet $9,800 Debt $16,649 $ 4,100 5,700 $9,800 Equity Total
For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000. Required: 1. Compute the anticipated break-even sales (units). units
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $28 Direct labor — 19 Factory overhead $98,800 14 Selling expenses: Sales salaries and commissions 20,500 6 Advertising 6,900 — Travel 1,500 — Miscellaneous selling expense 1,700 6 Administrative expenses: Office and officers' salaries 20,100 — Supplies 2,500 2…
For a table manufacturing company, variable cost is $125.00 per Unit, rent is $2,544.00 per month and insurance is $1,095.00 per month. Selling price for a table is $200.00 per Unit, How much is the company contributing to covering their fixed costs or generating profits? Submit
Question 5 ) Answer with Formulas
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $13 Direct labor 9 Factory overhead $210,100 6 Selling expenses: Sales salaries and commissions 43,700 3 Advertising 14,800 Travel 3,300 Miscellaneous selling expense 3,600 3 Administrative expenses: Office and officers' salaries 42,700 Supplies 5,300 1…
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $13 Direct labor 9 Factory overhead $212,900 6 Selling expenses: Sales salaries and commissions 44,200 3 Advertising 15,000 Travel 3,300 Miscellaneous selling expense 3,700 3 Administrative expenses: Office and officers' salaries 43,200 Supplies 5,300 1…
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $22 Direct labor 14 Factory overhead $514,300 11 Selling expenses: Sales salaries and commissions 106,900 5 Advertising 36,200 Travel 8,000 Miscellaneous selling expense 8,800 4 Administrative expenses: Office and officers' salaries 104,500 Supplies 12,900 2…
54) For the current year ending April 30, MJW Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95. (a) Compute the anticipated break-even sales (units). (b) Compute the sales (units) required to realize an operating profit of $8,000. (a) (b)

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