The following data relate to a year's budgeted activity for Blossom Limited, a company that manufactures one product:Beginning inventoryProductionAvailable for saleSalesEnding inventoryUnits(a)41,360144,760186,120134,420Selling priceVariable manufacturing costsVariable selling, general, and administrative expensesFixed manufacturing costs (based on 100,000 units)Fixed selling, general, and administrative expenses (based on 100,000 units)Break-even sales51,700Per unit$8.003.003.00Total fixed costs and expenses remain unchanged within the relevant range of 25,000 units to a total capacity of 160,000 units.units0.550.85Calculate the projected annual break-even sales in units. (Round answer to O decimal places, e.g. 5,275.)

The objective of this question is to calculate the break-even sales in units for Blossom Limited…

Answered: The following data relate to a year's…

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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Zachary Manufacturing Company established the following standard price and cost data. Sales price $ 8.60 per unit Variable manufacturing cost 4.00 per unit Fixed manufacturing cost 2,900 total Fixed selling and administrative cost 800 total Zachary planned to produce and sell 2,100 units. Actual production and sales amounted to 2,300 units. Required Prepare the pro forma income statement in contribution format that would appear in a master budget. Prepare the pro forma income statement in contribution format that would appear in a flexible budget. Prepare the pro forma income statement in contribution format that would appear in a master budget. ZACHARY MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 0 $0 Prepare the pro forma income statement in contribution format that would appear in a flexible budget.…
Felsen Industries manufactures basketballs. The budgeted income statement for the year, before any special orders, is as follows: Per Unit $10.00 Amount $4,000,000 3,200,000 800,000 300,000 $500,000 Sales Cost of goods sold Gross Profit Selling expenses Operating income 8.00 2.00 .75 $1.25 Fixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in selling expenses. A special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There will be no additional selling expenses if the order is accepted. Assuming Felsen has enough capacity to manufacture 50,000 more basketballs, or decreased as a result of accepting the special order? $ decrease] (circle one) what amount would operating income be increased [increase,
The following data relate to a year's budgeted activity for Coronado Limited, a company that manufactures one product: Beginning inventory Production Available for sale Sales Ending inventory Units 40,480 (a) 141,680 Selling price Variable manufacturing costs Variable selling, general, and administrative expenses Fixed manufacturing costs (based on 100,000 units) Fixed selling, general, and administrative expenses (based on 100,000 units) 182,160 131,560 50,600 Break-even sales Per unit $9.00 units 2.00 3.00 Total fixed costs and expenses remain unchanged within the relevant range of 25,000 units to a total capacity of 160,000 units. 0.50 0.80 Calculate the projected annual break-even sales in units. (Round answer to O decimal places, e.g. 5,275.)
Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 643,000 units, estimated beginning inventory is 101,000 units, and desired ending inventory is 88,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ Material B 1.00 lb. per unit @ Material C 1.20 lb. per unit @ $0.64 per pound $2.47 per pound $0.94 per pound The dollar amount of material A used in production during the year is Oa. $205,760 Ob. $1,556,100 Oc. $710,640 Od. $201,600
The following data have been extracted from the budgets of Kelvin Ltd,a company that manufacture and sells a single product $per unit Selling price Direct material cost Direct wages Variable overhead Fixed overhead 45 10 4 2.50 1.50 Fixed production overhead costs are budgeted at $400,000 per annum. Normal production levels are expected to be 200,000 units per annum. Actual Fixed Production overheads are $120,000 Budgeted administration costs are $120,000 per annum. The following pattern of sales and production is expected during 2003: Sales (units) Production (units) 60,000 70,000 You are required a. To prepare budgeted profit statements for the year using (i) (ii) Marginal Costing Absorption Costing b. To reconcile the profits for the year
Haresh
Current Attempt in Progress The following data relate to a year's budgeted activity for Blossom Limited, a company that manufactures one product: Beginning inventory Production Available for sale Sales Ending inventory Units 41,360 144,760 (a) 186,120 134,420 Selling price Variable manufacturing costs Variable selling, general, and administrative expenses Fixed manufacturing costs (based on 100,000 units) Fixed selling, general, and administrative expenses (based on 100,000 units) (b) 51,700 Total fixed costs and expenses remain unchanged within the relevant range of 25,000 units to a total capacity of 160,000 units. Calculate the projected net income for the year under variable costing. Per unit $8.00 Projected net income $ 3.00 3.00 0.55 0.85
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The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 10,000 $ 13,000 Cost of Goods Sold (5,000 ) (6,600 ) Gross Margin 5,000 6,400 Variable Cost (2,000 ) (2,700 ) Fixed Cost (2,500 ) (1,900 ) Net Income $ 500 $ 1,800 Based on this information Ashton Company has a Multiple Choice $1,300 favorable sales variance $1,300 unfavorable sales variance $3,000 favorable sales variance $3,000 unfavorable sales variance
Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount @ $ 700 @ 380 $ 319,200 (168,000) 151,200 $ 487,200 (259,200) 228,000 (114,000) $ 114,000 Sales 240 $168,000 560 @ $ 570 800 Variable cost (91,200) 76,800 |(19,000) $ 57,800 240 560 @ 300 = 800 %3D Contribution margin 240 320 560 @ 270 800 Fixed cost (95,000) Net income $ 56,200 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. f. Determine the margin of safety based on the combined sales…
Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 662,000 units, estimated beginning inventory is 110,000 units, and desired ending inventory is 87,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.52 per pound Material D 1.00 lb. per unit @ $2.46 per pound Material C 1.20 lb, per unit @ $1.01 per pound The dollar amount of Material t used in production during the year is O&$1571,940 Ob $1.257.552 O $2,357910 Od $1.886.320
Sheridan Company has invested 3,420,000 in assets to produce 11,400 units of its finished product. Sheridan's budget for the year is as follows: net income 478,000; variable costs, 2,736,000; fixed costs, 456,000 Compute each of the following: (Round answers to 1 decimal place, e.g. 15.2%.) 1. Budgeted ROI ____% 2. Markup percentage using the total cost approach %

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