The following income statements illustrate different cost structures for two competing companies:Number of customers (a)Sales revenue (ax $250).Variable cost (ax $190)Contribution marginFixed costNet incomeIncome StatementsCompany NameBENSON COMPANYIncome StatementSales revenueVanable costBenson82$20,500N/A20,500(15,580)$4,920Requireda. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird bylowering the sales price to $150 per customer.b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson bylowering the sales price to $150 per customer.Contribution marginFixed costNet income (loss)Complete this question by entering your answers in the tabs below.Baird82$20,500(15,580)4,9200$4,920Required A Required BReconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Bairdby lowering the sales price to $150 per customer.

Income statement is the financial statement of the company that shows the revenue and expenditures…

Answered: The following income statements…

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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A company has two divisions, C and E; both are operating as a profit center. C charges E $35 per unit for each unit transferred to B. Other data follow:C's variable cost per unit $35C's fixed costs $25,000C's annual sales to B 15,000 unitsC's annual sales to outsiders 70,000 unitsC is planning to raise its transfer price to $45 per unit. Division E can purchase units at $43 each from outsiders, but doing so would idle C's facilities now committed to producing units for E. Division C cannot increase its sales to outsiders. From the perspective of the company as a whole, from whom should Division E acquire the units, assuming E's market is unaffected? a. Division C, but only at the variable cost per unit b. Outside vendors c. Division C, in spite of the increased transfer price d. Division C, but only until fixed costs are covered, then should purchase from outside vendors
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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Perez Munoz Number of customers (a) 81 81 Sales revenue (a × $250) $ 20,250 $ 20,250 Variable cost (a × $175) N/A (14,175 ) Variable cost (a × $0) 0 N/A Contribution margin 20,250 6,075 Fixed cost (14,175 ) 0 Net income $ 6,075 $ 6,075 Required Reconstruct Perez’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Munoz by lowering the sales price to $150 per customer. Reconstruct Munoz’s income statement, assuming that it serves 162 customers when it lures 81 customers away from Perez by lowering the sales price to $150 per customer.
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Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 937,500 637,500 300,000 142,000 158,000 62,000 $ 96,000 North $ 750,000 600,000 150,000 71,000 $ 79,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. South $ 187,500 37,500 150,000 71,000 $ 79,000
Munabhai
The following income statements illustrate different cost structures for two competing companies: Income Statements Number of customers (a) Sales revenue (a $200) Variable cost (ax $140) Contribution margin Fixed cost Net income Company Name Hill 200 $40,000 N/A 40,000 (28,000) $12,000 Creek 200 $40,000 (28,000) 12,000 0 $12,000 Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below.
The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a x $230) Variable cost (a x $185) Contribution margin Fixed cost Net income Required Income Statements Required A Required B a. Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. b. Reconstruct Franklin's income statement, assuming that it serves 178 customers when it lures 89 customers away from Gibson by lowering the sales price to $130 per customer. Complete this question by entering your answers in the tabs below. GIBSON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Reconstruct Gibson's income statement, assuming that it serves 178 customers when it lures 89 customers away from Franklin by lowering the sales price to $130 per customer. $ Company Name Franklin 89 $ Gibson…
Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $ 825,000 495,000 330,000 144,000 186,000 64,000 $ 122,000 1. Dollar sales for company to break even 2. Dollar sales for North segment to break even 3. Dollar sales for South segment to break even North $ 550,000 385,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. 165,000 72,000 $ 93,000 $ $ $ Note: For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar. South $ 275,000 110,000 165,000 72,000 $ 93,000 5,200 x 2,400 X 1,200 x
please answer completely and correctly in text form with all working describe each and every step with explanation computation formula

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