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 unitTraceable fixed expenses per yearWeedban$9.00$ 3.10$ 133,000ProductGreengrow$34.00$12.00$ 36,000Last year the company produced and sold 44,000 units of Weedban and 19,000 units of Greengrow. Its annual common fixedexpenses are $97,000.Required:Prepare a contribution format income statement segmented by product lines.TotalCompanyProduct LineWeedbanGreengrow

The income statement is prepared to report profit or loss for the period. The profit is made when…

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

See similar textbooks

Similar questions

Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company’s costs is as follows. Variable manufacturing cost per unit $ 2 Variable selling and administrative cost per unit 1 Fixed manufacturing overhead per month $ 250,000 Fixed selling and administrative cost per month 200,000 a. Determine the company's monthly break-even point in units. b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000. c. Compute the company’s margin of safety if its current monthly sales level is $1,400,000. d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume.
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 $ 2.70 $ 129,000 Greengrow $35.00 $ 12.00 $ 44,000 Last year the company produced and sold 38,000 units of Weedban and 21,000 units of Greengrow. Its annual common fixed expenses are $100,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company $ Product Line 0 Weedban 0 $ 0 0 0 Greengrow $ 0 0
Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kate's Kale Chips for the upcoming quarter: Sales Production Variable manufacturing cost per bag Sales and distribution costs per bag Total fixed manufacturing overhead Fixed administrative overhead 1. Product cost under full costing 2. Projections 22,500 bags 24,500 bags $2.50 $ 0.40 Required: 1. Compute the projected product cost per bag produced under full costing. 2. Compute the projected product cost per bag under variable costing. (Round your answers to 2 decimal places.) Product cost under variable costing $ 49,000 $ 20,500 per bag per bag
XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes: Price $1,200 for phones, $910 for tablets. Unit Variable Cost $225 for phones, $265 for tablets Direct Fixed Cost $272,100 for phones, $191,680 for tablets Common fixed selling and administrative expenses total $194,855. Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places. Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Total Flight Dynamic Sure Shot Sales $ 650,000 $ 350,000 $ 1,000,000 CM ratio 66% 74% ? Fixed expenses total $575,000 per month. 3. If sales increase by $57,000 a month, by how much would you expect the monthly net operating income to increase?
Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Total Flight Dynamic Sure Shot Sales $ 650,000 $ 350,000 $ 1,000,000 CM ratio 66% 74% ? Fixed expenses total $575,000 per month. 2. What is the company's break-even point in dollar sales based on the current sales mix?
Irene LLC produces and sells a single product with the following costs: Var SG&A $2 per unit Var Production $4 per unit Fixed SG&A $12,000 per year Fixed Production $15,000 per year The company produced and sold 6,000 units.At this level of activity, net operating income was $18,000.What was the company's sales price per unit?
LUZEHO438 Corporation produces and sells a single product. The information about their operation for the last month is given below. Price per unit $240.00 (ID#81414) Contribution margin ratio 50% LUZEHO438's Fixed expenses $72,000 LUZEHO438's Operating leverage 2 (Baruch College Exam) Q. How many units did LUZEHO438 sell during the last month? A units
Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price per unit $35 Manufacturing cost $4,000 per month plus $17 per unit Administrative expense $2,500 per month plus $2.50 per unit Sales commissions 15% of sales Advertising expense $2,000 per month If Buffo expects to produce and sell 2,000 units next month, compute the total expected manufacturing cost.
Acme Inc. manufactures and sells widgets. Acme Inc. sells widgets for $15 each. Acme Inc. uses 3 gizmos for each widget. Gizmos cost $2 each. In December, Acme sold 300 widgets. Acme also pays rent of $500 per month. please show work. A.) What is Acme Inc.'s contribution margin per unit? B.) What is Acme Inc.'s contirbution margin ratio? C.) Assuming the about information is all revenue and expenses for scme, what is December's net income? D.) Determine the fixed cost give the following information: Lowest level of activity- 200 units at a total cost of $600 Highest level of activity- 800 units at a total cost of $1,800 Fixed cost =
Denger
Bacob Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $103.40 per unit. Sales volume (units) Cost of sales Selling and administrative costs O $213,590 The best estimate of the total contribution margin when 5,300 units are sold is: O $41,340 O $133,560 5,000 $315,500 $ 162,500 $56,710 6,000 $378,600 $177,600

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS