Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2.500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Revenue Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 250,000 160,000 90,000 60,000 $ 30,000 Prepare a flexible budget based on sales of 1,200, 3,000, and 4,000 units. (Round unit values to 2 decimal places eg. 15.25 and all other answers to O decimal places, eg. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses eg. (45))

Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2.500 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Revenue Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 250,000 160,000 90,000 60,000 $ 30,000 Prepare a flexible budget based on sales of 1,200, 3,000, and 4,000 units. (Round unit values to 2 decimal places eg. 15.25 and all other answers to O decimal places, eg. 1525. If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses eg. (45))

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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Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 5,000 Per Unit $3 $15,000 1.5 7,500 7,500 3,000 $4,500 If a flexible budget is prepared at a volume of 8,500 units, calculate the amount of operating income. The production level is within the relevant range. OA. $9,750 B. $12,750 OC. $3,000 OD. $4,500
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target income of $130,000. Sales (50,000 units) $1,000,000 Costs: Direct materials $ 270,000 Direct labor 240,000 Fixed factory overhead 100,000 Variable factory overhead 150,000 Fixed marketing costs 110,000 Variable marketing costs 50,000 Income 920,000 $ 80,000 O a. 53,165. O b. 81,250. Oc 36,207. O d. 50,000. Oe. 58,621.
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High Trails manufactures backpacks for adventurers. Totals sales for the year are budgeted at 2,400 backpacks, at a price of $90 each. Variable selling expenses include commissions ( 3% of sales price) and delivery costs ( $12 per backpack). Annual fixed selling and administrative expenses include general liability insurance ( $9,000), sales fleet depreciation ( $135,000), administrative salaries ( $270,000), and rent on the office building ( $63,000). High Trails pays all costs as they are incurred. What is the amount of cash budgeted for Selling and Administrative expenses for the year? Select one: a. $377,280 b. $368,280 c. $477,000 d. $512,280 e. None of these options are correct.
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Ss.
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Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 22,000 23,000 20,000 20,000 The company’s variable selling and administrative expense per unit is $2.10. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $21,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,400 will be paid in the second quarter. Required: Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. Note: Round "Per Unit" answers to 2 decimal places.
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Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income Unit Sales Sales revenue $ 220,000 Cost of goods sold $ 140,800 Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Flexible Budget 79,200 70,000 9,200 LA Sales Volume Variance LA Static Budget