Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing incomestatements for the two companies showing their different cost structures:AngeloRemo Co.Inc.Sales revenue$315,000$315,000140,000Less: Variable cost225,000Contribution margin$ 90,000$175,000130,000$ 45,000Less: Fixed cost45,000Net operating income$ 45,000Required:Calculate the break-even sales revenue for each company. (Round your "Contribution Margin Ratio" percentage to 2 decimal places(i.e. 1524 = 15.24%) and final answers to 2 decimal places.)Remo Co.Angelo Inc.Break-Even Sales Revenue On the graph presented, match each element to its appropriate description.HBE(AElementDescriptionPoint AArea GArea CLine HLine IArea BArea FAxis EAxis D

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Description: Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing incomestatements for the two companies showing their different cost structures:AngeloRemo Co.Inc.Sales revenue$315,000$315,000140,0

Contribution Margin Ratio is calculated at 2 decimal places . And final answer of Break Even Sales…

Answered: Remo Company and Angelo Inc. are…

Business

Accounting

Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures:

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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Indirect and common costs often make up a significant portion of the cost of a product. All of the following are reasons for indirect cost allocation to cost objects except to Multiple Choice reduce total costs identified with products. measure income and assets for external reporting purposes. justify costs for reimbursement purposes. provide information for economic decision making.
Shipping, selling, marketing, sales order processing, return processing, and advertising activities can be related to products by using activity-based costing. Would allocating these activities to products for financial statement reporting be acceptable according to GAAP? What would happen to net income if the activities noted in Discussion Question 6 were allocated to products for financial statement reporting and the inventory increased? Under what circumstances might the activity-based costing method provide more accurate product costs than the multiple production department factory overhead rate method? When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products? Under what two conditions would the multiple production department factory overhead rate method provide more accurate product costs than the single plant wide factory overhead rate method?
Complete the following income statements using absorption costing. Cost of goods sold: Production volume 300 320 workstations workstations Cost of goods sold per unit Number of workstations sold Total cost of goods sold Bison Business Solutions Absorption Costing Income Statements Production volume 300 320 Sales volume - 300 Workstations workstations workstations volume and sales volume affect the reported net income (loss)? E IUIUwing income statements using variable costing. Under absorption costing, can the difference between production Bison Business Solutions Variable Costing Income Statements Production volume (units) 300 320 workstations 300 workstations workstations 300 Sales volume (units) workstations 0 $ Net income (loss) Under variable costing, can a company increase aomo by increasing production?
Consider the following statements regarding traditional costing system: I – Overhead costs are applied to products on the basis of volume-related measures II – All manufacturing costs are easily traceable to the goods produced III – Traditional costing system tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements Which of the above statements is/are true?
Explain the variable costing income statement and provide a hypothetical example of a variable costing income statement in a manufacturing enterprise.
Which ONE of the following statements concerning costing is correct?a) The procedures used to calculate unit costs in manufacturing industries are notapplicable to service industries.b) Within process costing the cost per unit of output is found indirectly by dividingtotal costs by the number of units produced.c) In process and job costing the cost per unit of output is found directly byaccumulating costs for each unit.d) Costing is irrelevant because the same level of detailed information can beextracted from the financial accounts.
What are the three major types of product costs in a manufacturing company?
The following is a list of costs incurred by several businesses:Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense.
Under absorption costing, which of the following costs would not be included in finished goods inventory? a.direct labor cost b.direct materials cost c.variable and fixed selling and administrative expenses d.variable and fixed factory overhead cost
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Engineering LLC is facing a cost issues in their production department. The Production manager of Al Maha Engineering LLC wants to adopt standard costing in their company to tackle cost issues. He wants know the meaning of standard cost of a product. Which of the following statement is the meaning of standard cost of a product? a. The average unit cost of products produced during a particular period. b. The average unit cost of products produced in the previous period. c. The unit cost of products incurred at the start of a particular period. d. The planned unit cost of products produced during a particular period.
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