Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations,for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes.Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows:CupcakesVariable Expenses as a % ofSalesCookie Baker Salary/monthCupcakes BakerSalary/monthAssistant Baker Salary(assists both bakers)Cashier Salary (sells bothproduct lines)Cookies37.5%15%36%50%55%$4,000$1,5001,00050%$5,000$1,5001,000In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised bothproduct lines. The company also has corporate fixed costs of $10,000 per month (to pay company president,secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurredregardless of the product lines sold. The cashier and assistant baker would continue to be employed with thecompany regardless of the product lines sold.What is the segment margin for the cupcake?

Segment reporting is the reporting of the operating segments of a company in the disclosures…

Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations, for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes. Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows: Cupcakes Variable Expenses as a % of Sales Cookie Baker Salary/month Cupcakes Baker Salary/month Assistant Baker Salary (assists both bakers) Cashier Salary (sells both product lines) Cookies 55% $4,000 $1,500 1,000 50% $5,000 $1,500 1,000 In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised both product lines. The company also has corporate fixed costs of $10,000 per month (to pay company president, secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurred regardless of the product lines sold. The cashier and assistant baker would continue to be employed with the company regardless of the product lines sold. What is the segment margin for the cupcake?

Simply Sweets has provided the following relating to the most recent month (August 31, 2016) of operations, for their two main products, cookies and cupcakes. The company sold 20,000 cookies and 10,000 cupcakes. Cookies sell for $2.00 and cupcakes sell for $4.00. Other data relating to the product lines is as follows: Cupcakes Variable Expenses as a % of Sales Cookie Baker Salary/month Cupcakes Baker Salary/month Assistant Baker Salary (assists both bakers) Cashier Salary (sells both product lines) Cookies 55% $4,000 $1,500 1,000 50% $5,000 $1,500 1,000 In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised both product lines. The company also has corporate fixed costs of $10,000 per month (to pay company president, secretary, accountant etc. and general administrative costs). These corporate fixed costs would be incurred regardless of the product lines sold. The cashier and assistant baker would continue to be employed with the company regardless of the product lines sold. What is the segment margin for the cupcake?

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

The annual data that follow pertain to Carl's Crazy Eyewear, a manufacturer of swimming goggles. (Carl's Crazy Eyewear had no beginning Finished Goods Inventory in January.) (Click the icon to view the data.) Read the requirements. Data table Number of goggles produced Number of goggles sold Sales price per unit Variable manufacturing cost per unit Sales commission cost per unit Fixed manufacturing overhead Fixed selling and administrative costs Print Done $ 235,000 195,000 30 7 3 940,000 230,000 Requirements 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Carl's Crazy Eyewear for the year ended December 31. 2. Which statement shows the higher operating income? Why? 3. Carl's Crazy Eyewear's marketing vice president believes a new sales promotion that costs $360,000 would increase sales to 225,000 goggles. Should the company go ahead with the promotion? Give your reasoning. Print Done - X ember 31. (Round intermediary
Mcdale Incorporated produces and sells two products. Data concerning those products for the most recent month appear below. Product 149V Product Z500 Sales $ 14,000 Variable expenses $ 15,000 $ 3,300 $ 2,790 The fixed expenses of the entire company were $18,460. The break-even point for the entire company is closest to: Multiple Choice $23,367 $10,540 $24,550 $18,460
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Number of orders Units per order Sales returns: Number of returns Total units returned Jerry, Incorporated 6 Kate Company 60 3,000 460 4 50 15 3 190 4 es Number of sales calls Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Deliveries Cost Driver and Rate $800 per visit 280 per order. 440 per order Order processing 240 per return and $3 per unit returned 83,000 per month. Sales returns Sales salary Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen…
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
Zachary Corporation paid one of its sales representatives $8,500 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 170 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months. Month Number of units sold i Total variable cost Total fixed cost Total salary cost $ April 210 0 $ May 120 0 $ June 220 0 $ July 130 0
Joson Incorporated produces and sells two products. Data concerning those products for the most recent month appear below: Product A Product B Sales $ 30,000 $ 35,000 Variable expenses $ 11,800 $ 26,550 The fixed expenses of the entire company were $39,160. The break-even point for the entire company is closest to:
Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: (Click the icon to view the data.) Read the requirements. Less Less: Less: Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing. Less: Montn Endea Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 As inventory ▼ In February, absorption costing operating income January 31 February 28 Requirement 3. Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing. In January, absorption costing…
A condensed income statement by product line for British Beverage Inc. indicated the following for Royal Cola for the past year: Sales $236,800 Cost of goods sold 109,000 Gross profit $127,800 Operating expenses 145,000 Loss from operations $(17,200) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis, dated March 3, to determine whether Royal Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0". Use a minus sign to indicate a loss. Differential Analysis Continue Royal Cola (Alt. 1) or Discontinue Royal Cola (Alt. 2) January 21 Continue RoyalCola (Alternative 1) Discontinue RoyalCola (Alternative 2) Differential Effecton Income(Alternative 2)…
Fanning Corporation paid one of its sales representatives $4,000 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 150 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months. Month April May June July Number of units sold Total variable cost Total fixed cost Total salary cost 190 100 200 110 24 $
Mario’s Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: (picture chart 1) Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.
Rey Company’s only product sells for $226 per unit. Data for its first year of operations follow. Direct materials $ 30 per unit Direct labor $ 38 per unit Variable overhead $ 14 per unit Fixed overhead $ 456,000 per year Variable selling and administrative expenses $ 28 per unit Fixed selling and administrative expenses $ 220,000 per year Units produced and sold 28,500 units 1. Prepare an income statement for the year using absorption costing2. Prepare an income statement for the year using variable costing.
Finch Corporation paid one of its sales representatives $6,500 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 120 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months: Month Number of units Total variable cost Total fixed cost Total salary cost $ April 160 0 $ LA May 70 0 $ June 170 0 $ July 80 0