What is the amount of purchasing costs? Richardson Enterprises is preparing its annual profit plan. As part of its analysisof the cost of its purchasing activity, management estimates that the $144,000for purchasing support should be assigned to the individual vendors from theinformation given as follows:Units PurchasedPurchase Orders (Annual)Vendor X Vendor Y120,000 240,00018Number of Shipments Received 3672144What is the amount of purchasing costs that should be allocated to Vendor Y,assuming Richardson Enterprises uses the number of shipments received tocompute activity-based costs?

Explanation of Activity-Based Costing (ABC):Activity-Based Costing is a costing method that assigns…

Answered: Richardson Enterprises is preparing its…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

See similar textbooks

Similar questions

Rogers company is operating accounting questions
I want to correct answer accounting
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $15,000 for sales support should be assigned to the individual customers from the information given as follows: Multiple Choice Units purchased Purchase orders (annually) What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses purchases orders to compute activity-based costs? $3,000 $6,000 $9,000 Customer A 200,000 $12,000 Customer B 300,000 32 8
The GAAP income statement for Carla Vista Company for the year ended December 31, 2022,s shows sale $930,000, cost of good sold $555,000, and operating expenses $235,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
Required: . Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:
Use below information for Questions 1 to 3: Company X manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission at a percent of sales basis. Partial income statement for the year ending Dec 31, 2017, is as follows: Item Amount (TL) Sales 79,000,000 COGS Variable 31,540,000 8,610,000 Fixed Selling and marketing expenses Commissions 13,530,000 10,210,000 Fixed costs The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8.10% and incur additional fixed costs of TL7,530,000. Q-1) Calculate the degree of operating leverage at sales TL79,000,000 if the company uses sales agents. Q-2) Assume the company employs its own sales staff. Calculate the change in net income in TL if sales decrease by 10%. Q-3) Calculate the estimated sales volume in sales TL that would generate an identical net income for the year ending December 31, 2017, regardless of whether the…
Pharoah Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 22% of sales. The income statement for the year ending December 31, 2025, is as follows. PHAROAH BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2025 Sales | Cost of goods sold Variable Fixed Gross profit Selling and marketing expenses Commissions Fixed costs Operating income $30,760,000 8,580,000 $16,918,000 10,070,400 $76,900,000 39,340,000 $37,560,000 26,988,400 $10,571,600 (a) ✓ Your answer is correct. Under the current policy of using a network of sales agents, calculate the Pharoah Beauty Corporation's break-even point in sales dollars for the year 2025. (b) Break-even point $ eTextbook and Media Calculate the company's break-even point in sales dollars for the year 2025 if it hires its own sales force to replace the network of agents. Break-even point $ eTextbook and Media Save for Later Attempts: 1 of 2 used The…
Cullumber Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 22% of sales. The income statement for the year ending December 31, 2025, is as follows. Sales Cost of goods sold Variable Fixed Gross profit Selling and marketing expenses Commissions CULLUMBER BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2025 Fixed costs Operating income (a) Your answer is correct. (b) Break-even point $ $33,411,000 8,500,000 eTextbook and Media $17,094,000 10,470,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 7% and incur additional fixed costs of $11,655,000. $77,700,000 41,911,000 Under the current policy of using a network of sales agents, calculate the Cullumber Beauty Corporation's break-even point in sales dollars for the year 2025. 54200000 $35,789,000 27,564,000 $8,225,000 Attempts: 1 of 2 used Calculate…
Sunland Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2022, is as follows. SUNLAND BEAUTY CORPORATIONIncome StatementFor the Year Ended December 31, 2022 Sales $71,200,000 Cost of goods sold Variable $30,616,000 Fixed 8,560,000 39,176,000 Gross profit $32,024,000 Selling and marketing expenses Commissions $14,952,000 Fixed costs 10,660,400 25,612,400 Operating income $6,411,600 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 7% and incur additional fixed costs of $9,968,000. Calculate the company’s break-even point in sales dollars for the year 2022 if it hires its own sales force to replace the network of agents. Break-even…
Please use data table to calculate Gliss’s operating income for 2019,
Blossom Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $8.496,000.
The following information on actual and projected costs and revenues is available for Carson Enterprize. Dates Sales $ Purchases $ Oct. 2020 80 000 65 000 Nov. 2020 60 000 45 000 Dec. 2020 90 000 75 000 Jan. 2021 50 000 35 000 Feb. 2021 60 000 45 000 Mar. 2021 70 000 55 000 April 2021 60 000 45 000 You are given the following additional information: Based on past analysis, 20% of sales tend to be for cash while the remainder is normally settled as follows: 60% in the month following sales and 40% two months after sale. Carson enterprise normally pays 50% of the cost of purchases in the month of purchase and the remainder in the following month. New equipment will be purchased for $9,000 in January and this will be paid for in equal instalments in January, February and March. Old equipment is expected to be sold for $2,500 in February. Depreciation of the new equipment will be 10% per annum and will be charged to the…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS