Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost Informationrelating to the products follow:Selling price per unitVariable expenses per unitProductWeedban$ 6.00$ 2.40$ 45,000Greengrow$ 7.50$ 5.25$ 21,000Traceable fixed expenses per yearLast year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixedexpenses are $33,000.Required:Prepare a contribution format Income statement segmented by product lines.× Answer is not complete.Product LineTotalCompanyWeedbanSalesVariable expensesContribution margin$ 300,000$ 90,000183,000 →38,000 ✔Greengrow$ 210,000147,000117,00054,00063,000Traceable fixed expensesGross margin66,00045,00063,000 xx51,000$ 9,000 $033,000Net operating incomeS 18,000

To prepare a contribution format income statement segmented by product lines, we'll follow these…

Answered: Royal Lawncare Company produces and…

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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Pathways Careers, Inc. has two products-Resume Reader and Cover Letter Cure. Financial data for both the products follow: Resume Cover Letter Reader Cure 2,600 units 1,300 units Units sold Sales price per unit Variable manufacturing cost per unit Sales commission (% of sales) $600 320 6% $1,000 650 4% Pathways has two sales representatives-Curtis Muller and Willow Brown. Each sales representative sold a total of 1,950 units during the month of March. Curtis had a sales mix of 60% Resume Reader and 40% Cover Letter Cure. Willow had a sales mix of 80% Resume Reader and 20% Cover Letter Cure. Based on the above information, calculate Willow's total contribution to company profits. OA. $380,640 O B. $120,900 OC. $501,540 OD. $573,300
Andretti Company has a single product called a Dak. The company normally produces and sells 82,000 Daks each year at a selling price of $64 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 11.00 2.20 5.00 3.70 3.00 $ 32.40 ($410,000 total) ($246,000 total) A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume Andretti Company has sufficient capacity to produce 102,500 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 82,000 units each year if it increased fixed selling expenses by $100,000. What is the financial advantage (disadvantage) of investing an additional $100,000 in fixed selling expenses? 1-b. Would the additional…
Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 11.00 3.70 6.00 ($510,000 total) 4.70 3.50 ($297,500 total) $ 38.40 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 106,250 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 85,000 units each year if it were willing to increase the fixed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an additional $120,000 in fixed selling expenses? 1-b. Would…
Ovation Company has a single product called a Bit. The company normally produces and sells 64,800 Bits each year at a selling price of $47 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $10.50 7.50 3.60 4.80 ($311,040 total) 6.60 2.70 ($174,960 total) $35.70 A number of questions relating to the production and sale of Bits follow. Each question is independent. Required. 1. Assume that Ovation Company has sufficient capacity to produce 97,200 Bits each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the current 64,800 units each year if it were willing to increase the fixed selling expenses by $105,000. a. Calculate the incremental net operating income. Incremental operating income $ 199,560 b. Would the increased fixed selling…
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Wren Co. manufactures and sells two products with selling prices and variable costs as follows: A) selling price $18.00, variable costs $12.00, and B) selling price $22.00, variable costs $14.00. Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income was $28,800 what was the number of units Wren sold?
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 37.00 Variable expenses per unit $ 3.00 $ 13.00 Traceable fixed expenses per year $ 134,000 $ 36,000 Last year the company produced and sold 45,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $107,000. Required: Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 9.00 $ 2.50 $ 135,000 Greengrow $33.00 $ 13.00 $ 49,000 Last year the company produced and sold 36,500 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $9.00 $ 2.60 $ 137,000 Product Greengrow $36.00 $ 10.00 $ 38,000 Last year the company produced and sold 36,500 units of Weedban and 17,500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year $ $ $ 133,000 Greengrow $ $ $ 44,000 8.00 34.00 2.40 13.00 Common fixed expenses in the company total $95,000 annually. Last year the company produced and sold 37,000 units of Weedban and 16,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $54 $12 Unit variable cost $11 $9 Direct fixed cost $20,800 $41,000 Common fixed selling and administrative expenses total $84,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = _______ : __________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans _______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales…
SBD Phone Company sells its waterproof phone case for $112 per unit. Fixed costs total $172,000, and variable costs are $32 per unit. Compute the units of product that must be sold to earn pretax income of $210,000.

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