Sage Hill Corporation had sales of $3,360,000 for the year ended December 31, 2022. The unit selling price was $12. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $832,000 $760,000 Selling expenses 113,000 64,000 Administrative expenses 231,000 71,000
Q: During Heaton Company’s first two years of operations, it reported absorption costing net operating…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: profit for the year
A: Gross sales P6,100,000 Less Deductions Sales returns P100,000 Sales discounts P200,000 Net…
Q: Blossom Company has sales of $1,664,000 for the first quarter of 2022. In making the sales, the…
A: Under CVP income statement, Contribution margin is calculated as (Sales - Variable cost)Net…
Q: CraneManufacturing Inc. had sales of $2.75 million for the first quarter of 2022. In making the…
A: Income statement :— It is one of the financial statements that shows the profitability, total…
Q: JBC Ltd. sells goods on a gross profit of 25%. Depreciation of TZS 60,000 is considered as a part of…
A: Working capital refers to the funds that a company has available for its daily operations. It…
Q: Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The…
A: The CVP analysis is done by the companies to estimate the units that will bring the desired profit…
Q: During Heaton Company’s first two years of operations, it reported absorption costing net operating…
A: Unit product cost refers to the cost incurred in factory for the production of goods. Under variable…
Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…
A: Step 1: Income from operations is the income earned after deducting all the expenditures incurred…
Q: ngbird Corporation had sales of $3,000,000 for the year ended December 31, 2022. The unit selling…
A: The income statement shows the net income or net loss of the company. It is calculated by deducting…
Q: A retail company TGT has sales of $1,120,000 and total costs of $955,000, including depreciation and…
A: Profit margin = Net profit / Sales * 100
Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…
A: Step 1: Compute the unit variable cost as shown below: Thus, unit variable cost is $31.41
Q: Spike Industries had a bad year in 2021, experiencing an operating loss for the first time. The…
A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…
Q: Prepare a CVP income statement for the quarter ended March 31, 2022
A: SolutionCPV statement is a internal report. Which is used to analyze the variable cost and fixed…
Q: Bogs company has a net profit margin of 5%, an operating profit margin of 10%, and a gross profit…
A: Gross Profit = Sales Revenue x Gross Profit Margin Cost of Goods Sold = Sales - Gross Profit
Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…
A: Step 1: Compute the unit variable cost as shown below: Thus, unit variable cost is $31.41
Q: Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity,…
A: Total costs include both fixed, variable, and semi-variable costs. Fixed costs remain constant…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The Absorption Costing Method is a method of determination of the total product cost of the goods…
Q: Your answer is partially correct. Pharoah Inc. had sales of $2.220.000 for the first quarter of 2022…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…
Q: Company has sales of $1.573,000 for the first quarter of 2022. In making the sales, the company…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: Please help me answer questions 4-6 on the attached problems.
A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Unit product cost refers to the cost incurred in factory for the production of goods. Under variable…
Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…
A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…
Q: Deton pen Manufacturers sales= $980,000 cost of goods sold represented 64 percent of sales.…
A: Net income of an firm can be calculated by subtracting the cost of goods sold and other expenses…
Q: currently relie s on a thırd-party carrier to deliver its frozen lobster o different narts of the
A: Marginal Costing is a traditional costing system. It focuses…
Q: During Heaton Company’s first two years of operations, it reported absorption costing net operating…
A: Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead…
Q: Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of…
A: Operating income refers to that income that is left with a business after considering all its…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The income statement can be prepared using different methods as variable and absorption costing. The…
Q: During Heaton Company’s first two years of operations, it reported absorption costing net operating…
A: Absorption costing and variable costing are defined as two method of calculating net profit. There…
Q: During Heaton Company's first two years of operations, It reported absorption costing net operating…
A: The income statement can be prepared using various methods as variable costing and absorption…
Q: A company reports the following information for the current year: Units Produced (25,000)< Units…
A: FOH per unit = Total FOH / No. of units produced = $137500/25000 units = $5.5 per unit
Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…
A: Step 1: Compute the unit variable cost as shown below: Thus, unit variable cost is $31.41
Q: Kingsbury Manufacturing has net sales revenue of $940,000, cost of goods sold of $346,400, and all…
A: Gross profit = Sales - cost of goods soldGross Profit Margin in Decimals= (Gross profit/sales) Net…
Q: he following data are taken from the records of Dove Company, a division of Oasis Corporation for…
A: Return on sales :— It is calculated by dividing net income by net sales. Asset Turnover :— It is…
Q: The gross margin for Corona Company for the third quarter of the year was R3 250 000, when sales…
A: Cost accounting is one of the branches of accounting, under which all costs are being analyzed and…
Q: Required: 1. Determine the total variable costs and the total fixed costs for the current year.…
A: solution note : Dear student as per the Q&A guideline we can answer the first three subparts…
Q: I want correct answers
A: Step 1: Calculate the total cost of goods sold (COGS). Total COGS = Variable COGS + Fixed COGSTotal…
Q: Darby Company, operating at full capacity, sold 90,450 units at a price of $48 per unit during the…
A: “Hey, since there are multiple questions posted, we will answer three questions. If you want any…
Q: 50% 50% Administrative expenses Management is considering a plant expansion program for the…
A: Fixed cost are those costs which remain constant on volume basis and decreases on per unit basis as…
Q: 17. What is the unit selling price? $20 per unit $30 per unit O $41 per unit O $50 per unit None of…
A: Contribution Margin Ratio = Contribution Margin / Sales
Q: Darby Company, operating at full capacity, sold 101,250 units at a price of $84 per unit during the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales $2,000,000; total costs and expenses $2,235,000; and net loss $235,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,568,000 $1,050,000 $518,000 Selling expenses 517,000 92,000 425,000 Administrative expenses 150,000 58,000 92,000 $2,235,000 $1,200,000 $1,035,000 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. 3. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,000 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019.…During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 Sales (862 per unit) Year 2 $930,000 $1,550,000 495,000 Cost of goods sold t# $33 per unit) Gross margin 625,000 435,000 725,000 Selling and adninistrative expenses 292.000 322,000 Set operating income $ 143,000 $ 403,000 *$3 per unit variable: $247,000 fixed each year. The company's $33 unit product cost is computed as follows: Dirpet materials Diret labor Variable manufacturing overhead 3 13 Fixed manufacturing overhead (5260,000 20,000 unita) Absorption costing unit product cost Production and cost data for the first two years of operations are Year 1 Year 2 Units produced 20,000 20,000 thits sold 15,000 25,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 27 3. Reconcile the absorption costing and the variable costing net operating income figures…Whitman Company has just completed its first year of operations. The company's traditional format income statement for the year follows: Whitman Company Income Statement Sales (35,000 units × $25 per unit) Cost of goods sold (35,000 units × $15 per unit) Gross margin Selling and administrative expenses Net operating income Amount $ 875,000 525,000 350,000 278,000 $ 72,000 The company's selling and administrative expenses consist of $208,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $15 unit product cost given above is computed as follows: Direct materials Direct labor Variable overhead Fixed overhead ($100,000 ÷ 50,000 units) Unit product cost (under traditional costing) $ 6 6 1 2 $15 Required: 1. Prepare a contribution format income statement for the year ended December 31. 2. What was the contribution toward fixed expenses and profits for each unit sold? (State this figure in a single dollar amount per snowboard.) 3. What would operating income be if…
- Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 83,700 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $4,017,600 Cost of goods sold 1,984,000 Gross profit $2,033,600 Expenses: Selling expenses $992,000 Administrative expenses 992,000 Total expenses 1,984,000 Income from operations $49,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $336,000 in yearly sales. The expansion will increase fixed costs by $33,600, but…Blossom Manufacturing Ltd.'s sales for the year ended December 31, 2022 are $1.00 million. The expenses for 2022 are as follows: Cost of goods sold Selling expenses Administrative expenses Variable $320,000 56,000 27,920 Fixed $180,000 26,400 36,000 Prepare a detailed CVP income statement for the year ended December 31, 2022. Blossom Manufacturing Ltd. CVP Income Statement $ $During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $62 per unit) $ 1,178,000 $ 1,798,000 Cost of goods sold (@ $42 per unit) 798,000 1,218,000 Gross margin 380,000 580,000 Selling and administrative expenses* 306,000 336,000 Net operating income $ 74,000 $ 244,000 * $3 per unit variable; $249,000 fixed each year. The company’s $42 unit product cost is computed as follows: Direct materials $ 8 Direct labor 11 Variable manufacturing overhead 5 Fixed manufacturing overhead ($432,000 -: 24,000 units) 18 Absorption costing unit product cost $ 42 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 24,000 24,000 Units sold 19,000 29,000 Required: Using variable costing, what is the unit product cost for both years? What is the variable costing net operating income in Year 1 and in Year 2? Reconcile the absorption costing and the variable costing net operating…
- NoneBurger Shack, Inc. Product Line Income Statement For the Year Ended December 31, 2023 Hamburgers Hot Dogs Tacos Sales $120,000 $110,000 $90,000 Cost of Goods Sold (Variable) $56,000 $48,000 $60,000 Gross Profit $64,000 $62,000 $30,000 Selling and Administrative Expenses (Variable) $11,000 $14,000 $15,000 Income from Operations $53,000 $48,000 $15,000 Fixed Expenses* Net IncomeAJ Manufacturing Company Incurred $55,500 of fixed product cost and $44,400 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17.650 of fixed and $14.100 of variable selling and administrative costs. The company sold all of the units it produced for $182.000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP) b. Prepare an income statement using the contribution margin approach. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). AJ MANUFACTURING COMPANY Income Statement
- Shown here is an income statement in the traditional format for a firm with a sales volume of 17,500 units: Revenues $ 175,500 Cost of goods sold ($11,500 + $2.95/unit) 69,025 Gross profit $ 106,475 Operating expenses: Selling ($2,000 + $1.20/unit) 25,400 Administration ($5,250 + $0.45/unit) 14,025 Operating income $ 67,050 Required: a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Variable expenses: Total variable expenses 0 0 Fixed expenses: Total fixed expenses 0 $0 b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c|. Calculate the firm's operating income (or loss) if the volume changed from 19,500 units to 1. 24,500 units. 2. 11,500 units. d. Refer to your answer to part a when total revenues were $175,500. Calculate the firm's operating income (or loss) if unit selling price and variable expense…Crane Company has sales of $1,594,000 for the first quarter of 2022. In making the sales, the company incurred the following costs and expenses. Product costs Selling expenses $513,000 113,000 Administrative expenses 93,000 Variable Net Income $ Fixed $563,000 88,000 80,000 Calculate the company's net income under CVP for 2022.Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400