Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 500 unitsProduct C, what would the minimum sale price per unit be for this order?Minimum sale price$per unit Shamrock Co. manufactures three types of computer desks. The income statement for the three products and the whole company isshown below:SalesVariable costsFixed costsTotal costsOperating income (loss)Product A Product B Product C$110,000$135,00075,000125,000$88,00046,00025,20071,200$16,80018,00093,000$17,00018,000143,000$(8,000)Total$333,000246,00061,200307.200$25,800The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for eachproduct are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.

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shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A $88,000 46,000 25,200 71,200 $16,800 Product B $110,000 Product C $135,000 125,000 18,000 143,000 75,000 18,000 93,000 $17,000 $(8,000) Total $333,000 246,000 61,200 307,200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machim

shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A $88,000 46,000 25,200 71,200 $16,800 Product B $110,000 Product C $135,000 125,000 18,000 143,000 75,000 18,000 93,000 $17,000 $(8,000) Total $333,000 246,000 61,200 307,200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machim

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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Projected Income Statement Sales $844,000 Less variable costs: Variable manufacturing costs $286,000 Variable Selling costs $117,000 _________ Total variable costs 403,000 Contribution Margin $441,000 Less fixed costs: Fixed manufacturing costs $146,000 Fixed Selling and admin costs 82,200 Total fixed costs 228,200 Operating Income $212,800 The projected income statement was based on sales of 92,900 units. Company has the capacity to produce 125,500 units during the year. A. Determine the break-even point in units. Round up to the next whole unit B. The sales manager believes that the company could increase sales by 7,700 units if the advertising expenditures were increased…
Sales Cost of goods sold Gross profit Expenses: $186,000,000 (102,000,000) $84,000,000 Selling expenses $16,000,000 Administrative expenses 5,200,000 Total expenses (21,200,000) Operating income $62,800,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Administrative expenses Variable Fixed 70% 30% 75% 25% 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,160,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 86,000,000 ✓ 37,700,000 X 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 86 V ✓ 100 3. Compute the break-even sales (units) for the…
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?
Tackett Company sells a single product for $75 each. the variable costs are $45 each. Total fixed costs are $225,600. How many units must the company sell to achieve operating income of $90,000? A. 7013 O B. 10520 O C.6230 O D. 4208
Tackett Company sells a single product for $75 cach. the variable costs are $45 cach. Total fixed costs are $225,600. How many units must the company sell to achieve operating income of $90,000? O A. 7013 O B. 10520 O C. 6230 O D.4208
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income a. b. $ $ What is the company's unit contribution margin? $0.86 per unit $2.35 per unit $4.10 per unit $1.75 per unit C. d. 520,000 2,132,000 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000
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Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $374,700 $1,056,000 Variable costs 150,300 633,600 Contribution margin $224,400 $422,400 Fixed costs 158,400 246,400 Income from operations $66,000 $176,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ %
ABCDE Inc. has three divisions: AB, CD, and E. All fixed costs are unavoidable. Following is the income statement for the previous year: AB CD E Total Sales $ 515,000 $ 274,500 $ 226,000 $ 1,015,500 Variable Costs 182,000 124,500 100,500 407,000 Contribution Margin 333,000 150,000 125,500 608,500 Fixed Costs (allocated) 272,000 165,250 112,750 550,000 Profit Margin $ 61,000 $ (15,250 ) $ 12,750 $ 58,500 a. What would company’s profit margin be if the CD division were dropped?
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The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 138,000 100.00 $ 138,000 100.00 Variable costs 82,800 60.00 41,400 30.00 Contribution margin 55,200 40.00 96,600 70.00 Fixed costs 36,450 72,500 Operating income (πB) $ 18,750 $ 24,100 Y Company's margin of safety (MOS) in sales dollars (rounded) is:
Guava Corporation has two divisions, Beverages and Snacks. Here are data for the most recent year: Total company Sales Variable costs Contribution margin Traceable fixed costs Segment margin O $720,000 O $750,000 O $760,000 O $780.000 ? O None of the above $390,000 ? ? ? Beverages ? $180,000 ? $150,000 $(30,000) Guava's total company operating income is $45,000 and its common fixed costs are $75,000. What are Guava's total company sales? ? Snacks $300,000 $210,000 ? ?