The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold atthe same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small basesalary.The following data pertains to Shop 48 and is typical of the company's many outlets:Selling priceVariable expenses:Invoice costSales commissionTotal variable expensesPer Pair ofShoes$ 40.00$ 16.004.00$ 20.00Fixed expenses:AdvertisingRentSalariesAnnual$ 45,00031,000155,000Total fixed expenses$ 231,000Required:1. What is Shop 48's annual break-even point in unit sales and dollar sales?Note: Do not round intermediate calculations.Break-even point in unit salespairs

Answered: Image /qna-images/answer/3c82592d-1277-41ce-9bce-2c48247961fa.jpg

Answered: The Fashion Shoe Company operates a…

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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Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied Operation $ 35,400 Administration $ 62,400 Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Operation costs Administration costs Operating profit Activity-Based Income Statement Resources Used Unused Resource Capacity…
Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston purchased 40 bicycles at $68 each. On October 31, when the average cost per unit was $62.00, Boston sold 34 bicycles for $100 each. Boston's cost of goods sold under the FIFO, LIFO and weighted-average methods is summarize follows: FIFO LIFO Weighted-average Cost of Goods Sold $ 2,000 $ 2,312 $ 2,108 Read the requirements. Requirement 1. Which inventory costing method produced the lowest cost of goods sold? The inventory costing method produced the lowest cost of goods sold. Requirement 2. Which inventory costing method produced the highest cost of goods sold? The inventory costing method produced the highest cost of goods sold. Requirement 3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold? If prices had been declining instead of rising, the V method would have produced the highest cost of goods sold. Requirements 1.…
Paint Company has two customers Commercial and Consumer with data as follows: Commercial Consumer Selling Price per unit $15 $15 Units Sold 5,000 8,000 Manufacturing Cost per unit $8.25 $8.25 Number of Purchase Orders 76 212 Number of Deliveries 104 287 Number of Expedited deliveries 357 589 Customer Visits 58 75 Paint Company’s management accountant has gathered the following ABC rate information: ABC Cost Rate Purchase Orders $ 72 per purchase order Deliveries $ 43 per delivery Expedited Deliveries $ 18 per expedited delivery Customer Visits $ 56 per customer visit Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the Commercial customer?
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required 1 Required 2 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Amount $ 1,540,000 $ 440 $ 48 Complete this question by entering your answers in the tabs below. Required 3 What was the contribution margin per unit? Note: Round your final answer to nearest whole dollar. Contribution margin per unit $ 17 $ 130,000 $ 115,000 $ 65,000 $ 120,000 $ 305,000
Ramirez Corp. has two customers, C1 and C2. Ramirez Corp currently allocates indirect costs to customers at a rate of 5% of customer revenue. Data for C1 and C2 are as follows: C1 C2 Selling Price per Unit $20.00 $20.00 Units Sold 50,000 12,000 Manufacturing Cost per unit $15.00 $15.00 Number of Purchase Orders 112 27 Number of deliveries 105 68 Number of Inspection 77 50 Customer Visits 40 35 A. Using the current costing system to allocate support costs, calculate Operating Income for customers C1 and C2. Ramirez Corp.'s Management Accountant has gathered the following ABC rate information: ABC Cost Rate Number of purchase orders $40 per purchase order $85 per delivery $200 per expedited delivery Number of deliveries Number of inspections Number of customer visits $400 per customer visit b. Calculate the total support cost allocated to C1 & C2 using the Activity Based Costing (ABC) system. c. Comparing the indirect cost allocated in part a. to the indirect cost allocated in part b.…
Pound Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dustin Pound, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,000 3,500 5,000 Garments Garments Garments Total variable costs $ 2,450 Total fixed costs Total operating costs Variable cost per garment 2.00 Fixed cost per garment Average cost per garment %24
Aidel Inc., a merchandising company, reported the following results for September. Cost of goods sold 205,837 Fixed selling and administrative expense 41,331 Variable selling and administrative expense, 86,269 Sales revenue 563,800 This question is independent of all other questions. Please use only the information in this question to calculate the answer. Based on the information provided above, calculate break – even in dollars. Cost of goods sold is a variable cost in this company. Enter only the amount for the break – even in dollars in the box provided below ( rounded to a whole number, based on general rounding rules). Enter the amount only. Do not enter letters, words, dollar signs or the calculation.
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 Number of sales calls Jerry, Incorporated Kate Company 6 30 1,000 420 4 5 50 13 140 5 Colleen sells its products at $290 per unit. The firm's gross margin ratio is 20%. 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 Cost Driver and Rate $800 per visit Order processing Deliveries Sales returns Sales salary Required: 180 per order 410 per order 270 per return and $3 per unit returned 107,000 per month 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 Company…

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