Stuart Corporation sells hammocks; variable costs are $71 each, and the hammocks are sold for $136 each. Stuart incurs $450,500 offixed operating expenses annually.Requireda1. Determine the sales volume in units and dollars required to attain a $63,000 profit.a2. Prepare an income statement using the contribution margin format.b. Stuart is considering implementing a quality improvement program. The program will require a $6 increase in the variable costper unit. To inform its customers of the quality improvements, the company plans to spend an additional $39,200 for advertising.Assuming that the improvement program will increase sales to a level that is 5,300 units above the amount computed inRequirement a, prepare a budgeted income statement using the contribution margin format.c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that thequality improvement program is implemented.Complete this question by entering your answers in the tabs below.Req A1Req A2Req BSales volume in unitsSales volume in dollarsReq CDetermine the sales volume in units and dollars required to attain a $63,000 profit.

Sales Volume (in units) = (Fixed costs + Desired profit) / Contribution per unitSales volume (in…

Answered: Stuart Corporation sells hammocks;…

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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Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to: Multiple Choice $13,800 $19,000 $17,733 $ 300,000 240,000 60,000 59,000 $ 1,000 $16,800
Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts
Can i please get help withthis question? Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn a profit of $150,000. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.
Perez Company incurs annual fixed costs of $120,540. Variable costs for Perez’s product are $27.90 per unit, and the sales price is $45.00 per unit. Perez desires to earn an annual profit of $63,000. RequiredUse the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. Do not round answer to the nearest whole number
Help me please
Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's margin of the safety? Select one: a. The margin of the safety is $450,000 b. The margin of the safety is $630,000 c. The margin of the safety is $270,000 d. The margin of the safety is $180,000
Bloom Company management predicts that it will incur fixed costs of $267,000 and earn pretax income of $353,100 in the next period. Its expected contribution margin ratio is 53%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total dollar sales. Dollar Sales Choose Numerator: / Choose Denominator: = 1 of 5 F8 Next > F9 18 F10 F11 F12 Fn Lock 3:25 PM 6/16/2022 Insert
4.
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. Flanders Manufacturing data Current Units sold 216,000 Sales price per unit $2.15 Variable cost per unit $1.75 Contribution margin per unit $0.40 Fixed costs $56,000 Break-even (in units) 140,000 Break-even (in dollars) $301,000 Sales $464,400 Variable costs $378,000 Contribution margin $86,400 Fixed costs $56,000 Net income (loss) $30,400 A) What will the impact be on the break-even point if Flanders purchases the new machinery? New break-even point in units? New break-even point in dollars? B) What will the impact be on net operating income if Flanders purchases the new machinery? New net income(loss)?
Jordan Company incurs annual fixed costs of $51,415. Variable costs for Jordan's product are $3015 per unit, and the sales price is $45.00 per unit. Jordan desires to earn an annual profit of $56,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $590 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $590 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $590 each. 5. Suppose Sandy Bank wants to earn $76,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $590 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Required 3 Required 4 Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ $ $ 500 Required 5 780 0 0.00
Racer Industries has fixed costs of $900,000. The selling price per unit is $250, and the variable cost per unit is $130. Required: a. How many units must Racer sell in order to break even? units b. How many units must Racer sell in order to earn a profit of $480,000? units c. A new e Accounting numeric field dustries sponsor a 10K marathon as a form of advertising. The cost to sponsor the event is $7,200. How many more units must be sold to cover this cost? units

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