Answered: Sales 200,000 Variable expenses 140,000…

Business

Accounting

Sales 200,000 Variable expenses 140,000 Fixed expenses 100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A firm contemplates to drop a segment that shows a contribution margin of P25,000. Overhead…

A: Solution: Effect of this discontinuance on the company’s profit before tax = Avoidable overhead…

Q: Tower Inc.’s break-even point in sales revenue is $675,000. Tower’s variable costs are 75% of its…

A: Sale revenue is the amount of revenue earned by an entity. From this, the variable and fixed costs…

Q: Company A sales Sales 100% 70% Variable costs 33,000 Contibution Margin P 44,000 Fixed Costs Net…

A: Operating leverage indicates the ability of the business to manage fixed and variable costs to…

Q: Z Company plans to discontinue a department with the following average monthly operating results:…

A: Lets understand the basics. In cost accounting, management needs to choose between various…

Q: Sunland Company is deciding whether or not to discontinue one of its divisions. The division's…

A: The contribution is calculated as difference between sales sand variable costs. If contribution…

Q: Coronado Machines has four product lines, one of which reflects the following results: Sales…

A: Avoidable fixed costs = Total Fixed costs x 40% = 111000 x 40% = $44,400

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how…

A: The CPV or cost volume profit analysis helps in determining the effects on the operating income from…

Q: If total fixed cost of company increases from $250,000 to $300,000, variable cost remainsunchanged…

A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…

Q: Mazoon Company has fixed costs of $12,000 and a breakeven point of 600 units . If the company plans…

A: break even point = fixed cost / contribution per unit

Q: Your Company's residual income was $8,500. Net income was $170,000 and average operating assets…

A: Residual income = Net Operating income - Minimum return required of return where, Minimum return…

Q: 20 Hsu, Inc. sells a single product for $12. Variable oosts are $8 per unit and total 5360,000 at a…

A: Contribution margin per unit = sales price per unit = variable cost per unit = $12 - $8 = $4 per…

Q: Variable Costs Contribution Margin Direct fixed expenses Common fixed expenses Total fixed expenses…

A: Relevant cost in management The term relevant cost really matters. The relevant cost is the cost…

Q: What are total variable costs for Morris with their current product mix? Total variable costs $ B.…

A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…

Q: Contribution Margin of Walls Corporation, Consumer division isRs. 1900,000 and the fixed expenses is…

A: Formula: Contribution margin = Sales - variable cost Deduction of variable cost from sales value…

Q: the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses…

A: Lets understand the basics.Whether to discontinue business operation or not needs to require…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: Increase in profit = current contribution margin x increase in sales % = 450000 x 10% = $45000

Q: Your Company's residual income was $13.500. Net income was $67.500 and average operating assets were…

A: Residual income = Net income - Minimum profit required where, Minimum profit required = Average…

Q: A company provided the following results from It's operations: Total Sales $400,000 Variable…

A: Lets understand the basics. Contribution margin is a margin generated from sales. Contribution…

Q: sales = 950,000, variable costs = 450,000, and fixed costs = 310,000. if an addition is offered to a…

A: Calculation of Income before Additions Particulars Amount ($) Sales 950,000 Less: Variable…

Q: Mazoon Company has fixed costs of 12000 and a breakeven point of 600 units . If the company plans to…

A: Break even point = fixed cost / contribution per unit

Q: Income statements for the most recent period for each product line are presented below: Product A…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Sales Variable expenses Contribution margin Fixed expenses Net operating income. Amount $ 140,000…

A: Degree of operating leverage indicates the how much change in net operating income will be there if…

Q: None

A: The formula to calculate this is:Operating Break-even Point = Fixed Costs/(1−Variable Cost Ratio)…

Q: A segment of a company reports the following loss for the year. All $178,500 of its variable costs…

A: Please comment down for any doubt. I hope my answer helps you.

Q: Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of…

A: Given, Contribution margin = $ 49000 Total Fixed Costs = $ 96000 Unavoidable FC = $ 42000…

Q: Q3.…

A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…

Q: What would be the expected change in profit?

A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: National Co. had the following economic data for 2022: ...*** ..

A: Margin of safety = (Actual sales - Break-even point) / Actual sales where, Margin of safety = 10%…

Q: Using the data below, calculate the ROI for Company A Company A Operating assets Required rate of…

A: Positive residual income shows that the person or company is making more money than the legally…

Q: Shannon Company segments its income statement into its North and South Divisions. The company's…

A: Workings :- 1) Calculation of contribution margin of total company :- Sales * contribution margin…

Q: Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $534,000, and…

A: In CVP analysis, operating income is a key metric because it helps businesses determine the level of…

Q: Mazoon Company has fixed costs of $10,000 and a breakeven point of 500 units. If the company plans…

A: Hence option e is correct.

Q: The following information relates to Pug Company Sales revenue Contribution margin Net operating…

Q: Farhan Corporation fixed monthly fixed expenses are Rs. 370,000 and its contribution margin ratio is…

A: Given, fixed expense=3,70,000 Contribution margin ratio= 55%

Q: SALES $8 per unit $160,000 LESS: VARIABLE EXPENCES (128,000) Contribution margin $32,000 LESS:…

A: Break-even analyses are used for decision-making in almost every organization. the management can…

Q: Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000…

A: Avoidable fixed costs = fixed costs x (100%-42%) = $50,000 x 58% = $29,000

Q: a.) b.)

A: The amount of potential profit in the retail price of merchandise is measured by initial markup…

Q: A company has five product lines, one of which has Fixed expenses of $173,657 and a Net loss of…

A: Segment Reporting; When a company's operating segments are reported in the financial statements that…

Q: Angela Company is concerned about its operating performance, as summarized below: Revenues (P12.50…

A: Break even is point at which an entity is in situation of no profit no loss. It is the point whereby…

Q: 6. Chung-Ang Company has two department. The company's most recent monthly contribution format…

A: Sunk Cost :— It is the cost that is already incurred in past and it is now irrecoverable.…

Q: What is the shutdown point (in units) for one month? P 1,500 P 2,000 P 2,500 P 3,000

Q: Assume that sales are predicted to be $15,000, the expected contribution margin is $6,000, and a net…

A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio of…

Q: Last month Dexter Company had a $20,520 loss on sales of $144,000. Fixed costs are $72,360 a month.…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or loss.…

Question

40% of the fixed expenses will be eliminated and the remaining 60% will be allocated to the other if this segment is eliminated. What will be the over-all effect on the remaining company?

12,000 increase

60,000 decrease

No effect

20,000 decrease

A segment of Theta Company has the following data:
Sales
200,000
Variable expenses
140,000
Fixed expenses
100,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Bran Corporation plans to discontinue a division that generates a total contribution margin of $40,000 per year. Fixed overhead associated with this division is $150,000, of which $100,000 cannot be eliminated. What will be the impact on Bran's overall profitability if the division is discontinued? Increase by $60,000. None of these. Decrease by $60,000. Increase by $10,000. Decrease by $10,000.
The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $7320007 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
13 XYZ Company is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annual fixed costs. Of the fixed costs, $20,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be $15,000 ($35,000) $35,000 ($15,000)
A company shows you the following data: Sales Costs: Variable costs Fixed costs Total costs Income (loss) Product Data O $20,000 decrease O $30,000 increase O $30,000 decrease O $20,000 increase F Product G Total $300,000 $210,000 $340,000 $850,000 $180,000 $180,000 $220,000 $580,000 50,000 50,000 40,000 140,000 $230,000 $230,000 $260,000 $720,000 $ 70,000 $(20,000) $ 80,000 $130,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. How much would net income for the current year change if they discontinue Product G?
Variable costs as a percentage of sales for Lemon Inc. are 77%, current sales are $601,000, and fixed costs are $202,000. How much will operating income change if sales increase by $36,800? a.$8,464 increase b.$28,336 decrease c.$28,336 increase d.$8,464 decrease
The Alligator segment of Carla Vista Specialty Meats is operating at a loss and has the following data: Sales S 576000 Variable expenses 403200 Fixed expenses 288000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. Select answer from the options below $28800 increase. $28800 decrease. $345600 increase. $144000 increase.
Manor Company plans to discontinue a department that has a contribution margin of$24,000and 548,000 in foed costs. of the fixed costs,$21,000cannot be avoided. The effect of this discontinuance on Manor's overall net operating income would be an: a increase of$24,000 b increase of$3,000 c. decrease of$3,000 d. decrease of$24,000
If Fairfield Company can reduce fixed expenses by $22,500, breakeven sales in units will
7. Boone Corporation's income statement for the most recent month is given below. Company Store G Store H Sales 150,000 60,000 90,000 Variable expenses 60,000 30,000 30,000 Contribution margin 90,000 30,000 60,000 Traceable fixed expenses 60,000 15,000 45,000 Division segment margin 30,000 15,000 15,000 Common fixed expenses 10,000 Net operating income $20,000 Store H sales will increase by $15,000 with no change in fixed costs. What is the new division segment margin for Store H? Group of answer choices $35,000 $25,000 $40,000 $50,000
18. The Disney Company's breakeven sales is P400,000 at a certain level of fixed costs. When such fixed costs are increased by P30,000, the breakeven sales will be P520,000. The variable cost ratio is A. 76.9% B. 75% C. 28.6% D. 25% 19. Variable cost ratio is 60%. While breakeven ratio is 65%. Net income is P42,000. Fixed cost must be A. P 78,000 B. P 22,615 C. P 63,000 OD. P 65,000
Sales $48,000 Variable Expenses $32,000 Contribution Margin $16,000 Fixed Expenses $13,000 Net Operating Income $3,000 8.1 What is the contribution margin per unit? 8.2 What is the contribution margin ratio? 8.3 If sales increased to 1,010, what would be the increase in net operating income? 8.4 If sales decreased to 950, what would be the net operating income? 8.5 What is the breakeven point in units? Round up to nearest unit 8.6 How many units must be sold to achieve a target profit of $7,000? 8.7 What is the margin of safety in dollars and in percentage? 8.8 What is the degree of operating leverage? Consider the following for Sports Stuff Corporation. The following contribution format income statement is based on a sales volume of 1,000 units. The relevant range is 700 to 1,400 units. 8.9 If the selling price increased by $4 but the sales volume decreased by 10%, what would be the net operating income? 8.10 If the company…
Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000 in fixed costs. Of the fixed costs, 42%6 cannot be eliminated. What is the effect of this discontinuance on net operating income? O decrease by $24,000 increase by $ 7,000 O decrease by $ 7,000 O increase by $ 1,000 O decrease by $ 1,000