The following information pertains to Catnip Company: Sales (25,000 units) $250,000 Manufacturing expenses: Variable 85,000 Fixed 17,500 Selling and general expenses: Variable 27,500 Fixed 14,950 Catnip's break-even point in number of units is:
Q: The following information is available from the accounting records of Oklahoma Manufacturing. Sales…
A: Break even point is the state where the company is not able to earn profit from its business nor it…
Q: Sargasso Company offers two products. At present, the following represents the usual results of a…
A: Break even point is a level at which there is no profit no loss. here, fixed cost is the amount…
Q: Assume the following information for a company that produced 10,000 units and sold 8,000 units…
A: Variable cost per unit remains constant per unit. Fixed cost is constant in total. Contribution…
Q: During August, Tyson Company sold 6,600 units and reported the following income statement: Sales…
A: Lets understand the basics.Degree of operating leverage indicates how much change in net operating…
Q: Granfield Company has a piece of manufacturing equipment with a book value of $45,500 and a…
A: Hi studentSince there are multiple questions, we will answer only first question.Incremental costs…
Q: Consider the following information for Presidio Incorporated's most recent year of operations.…
A: In absorption costing method, the unit product cost is the sum of all manufacturing costs per unit…
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: The phrase "financial advantage" refers to the sum of the incremental profit that the firm would…
Q: Assume the following information for the first year of operations for a company that sells only one…
A: The net income is calculated as the excess of revenues over the total costs incurred. Under…
Q: Information from SAAX, Inc's first year of operations is available below: Sales in units 5,000…
A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…
Q: Assume the following information for the first year of operations for a company that sells only one…
A: The supervariable costing assumes only direct materials to be the variable cost. Other costs…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Product cost refers to the total cost that is required to be incurred by the companies for…
Q: A condensed income statement by product line for British Beverage Inc. indicated the following for…
A: Variable cost of goods sold = (110000 * (100-13)%) =95700 Fixed Cost of goods sold = 110000*13% =…
Q: Summarized data for Walrus Co. for its first year of operations are: Sales (100,000 units)…
A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…
Q: The following information pertains to ABC Company: Manufacturing costs: $2,240,000 Units…
A: Gross margin is difference between sales revenue and cost of goods sold. Cost of goods sold =…
Q: Jasper Company provided the following information for last year: Costs Sales in units Selling price…
A: 1. Income Statement of Jasper for the last year Sales (285,000 units * $17) 4,845,000.00…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A:
Q: The records of the Dodge Corporation show the following results for the most recent year: Sales…
A: Step 1: Contribution margin Contribution margin = Sales - Variable expensesContribution margin =…
Q: he following information for the past year for the Magic Corporation has been provided: Fixed costs:…
A: Contribution margin refers to a gross or per unit basis. it shows that the incremental money is…
Q: The following information were obtained from the records of HILO Company: Production in units 8, 000…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Whitman Company has just completed its first year of operations. The company's absorption costing…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: A manufacturer of has supplied the following data: Kilograms produced and sold 350,000 Sales…
A:
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The field of accounting known as cost accounting is utilized by manufacturing organizations to…
Q: The total sales revenue of Black Stone Crushing Company was $150,000 for the last year. The fixed…
A: We have the following information: Total Sales Revenue: $150,000 Variable Expenses:Manufacturing:…
Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…
A: Solution:- Calculation of Differential cost analysis as follows:-
Q: PB6. LO 16.3 Use the following excerpts from Kayak Company's financial information to prepare the…
A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…
Q: xed costs ariable costs ermine for 2 variable cos
A: 1) Total Cost Fixed Cost in % Fixed Cost in $ Variable Cost in % Variable Cost in $…
Q: Sales revenue (6,000 units) $150,000 Cost of goods sold:…
A: Total Contribution Margin = Sales - All Variable Cost
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The income statement can be prepared using different methods as variable and absorption costing. The…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Unit product cost refers to the cost incurred in factory for the production of goods. Under variable…
Q: A review of Parson Corporation's accounting records found that at a volume of 138,000 units, the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Foggs Corporation has provided the following data for its two most recent years of operation:…
A: ABSORPTION COSTING Absorption costing considers direct materials, direct labor, variable…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Under Variable Costing, only variable manufacturing costs i.e. expenses that change depending on the…
Q: A company has a single product. The monthly data concerning the single product follows: Item Amount…
A: Income statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: A manufacturer of flour has supplied the following data: Tons of flour produced and sold 254,000…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: In the last reporting period, Global Tech Company recorded 140,000 units sold for the first time in…
A: The contribution margin is calculated by subtracting the variable cost per unit from the selling…
Q: Whitman Company has just completed its first year of operations. The company's absorption costing…
A: The income statement in the contribution format is organised to divide expenses into fixed and…
Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of…
A: Under Full Absorption Income Statement , Gross Profit = Sales - Cost of goods sold Net Operating…
Q: Farrow Company reports the following annual results. Contribution Margin Income Statement Per…
A: Special Order Decision is an accounting method which is used to make decision regarding making or…
Q: At a volume of 28,000 units, Almount Industries reported sales revenues of $1,268,000, variable…
A: Variable cost refers to the expenses that change in proportion to the production volume or the level…
Q: A condensed income statement by product line for Master Energy Co. indicated the following for the…
A: One of a company's primary financial statements, the Income Statement, displays profit and loss for…
Q: At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution…
A: Under the variable costing, fixed costs are taken as period costs and taken as a whole amount.…
Sales (25,000 units)
|
$250,000
|
Manufacturing expenses:
|
|
|
Variable
|
85,000
|
|
Fixed
|
17,500
|
Selling and general expenses:
|
|
|
Variable
|
27,500
|
|
Fixed
|
14,950
|
Catnip's break-even point in number of units is:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- A condensed income statement by product line for Crown Beverage Inc. indicated the following for King Cola for the past year: Sales $236,100 Cost of goods sold 112,000 Gross profit $124,100 Operating expenses 142,000 Loss from operations $(17,900) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 21% of the operating expenses are fixed. Since King Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. Question Content Area a. Prepare a differential analysis, dated March 3, to determine whether King 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 AnalysisContinue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2)January 21 Continue KingCola (Alternative 1) Discontinue KingCola (Alternative 2) Differential Effecton Income(Alternative 2)…A condensed income statement by product line for British Beverage Inc. indicated the following for King Cola for the past year: Sales $235,100 Cost of goods sold 112,000 Gross profit $123,100 Operating expenses 145,000 Loss from operations $(21,900) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are fixed. Since King 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 to Continue King Cola (Alternative 1) or Discontinue King Cola (Alternative 2). If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisContinue King Cola (Alt. 1) or Discontinue King Cola (Alt. 2)March 3 Continue KingCola (Alternative 1) Discontinue KingCola (Alternative 2) Differential…Skolnick Corporation has provided the following information: Cost per Unit Direct materials $ 5.20 Direct labor $ 4.70 Variable manufacturing overhead $ 1.80 Cost per Period Fixed manufacturing overhead $ 126,000 Sales commissions $ 1.40 Variable administrative expense $ 0.60 Cost per Period Fixed selling and administrative expense $39,600 Selling price $20.6 per unit. The value of break-even point sales is:
- North Wood Company reported net sales of $500,000 variable cost of goods sold of $200,000, variable selling and administrative expense of $85,000 fixed manufacturing cost of $105,000, and mixed selling and administrative expenses of $80,000. The contribution margin isDuring Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@$62 per unit) Cost of goods sold (@ $40 per unit) Gross margin Selling and administrative expenses* Net operating income * $3 per unit variable; $249,000 fixed each year. The company's $40 unit product cost is computed as follows: Units produced Units sold Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($330,000 22,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Year 1 Year 2 $ 1,054,000 $ 1,674,000 1,080,000 594,000 330,000 $ 264,000 Year 1 22,000 17,000 Required 1 680,000 374,000 300,000 $ 74,000 Required 2 Required 3 Year 2 22,000 27,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable…A condensed income statement by product line for British Beverage Inc. indicated the following for Royal Cola for the past year: Sales $233,300 Cost of goods sold 111,000 Gross profit $122,300 Operating expenses 145,000 Loss from operations $(22,700) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% 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)…
- 2. A condensed income statement by product line for Master Energy Co. indicated the following for the Master Energy product line for the past year: Revenues and Costs Dollar Amount Sales $12,500,000 Cost of goods sold Gross profit Operating expenses Loss from operations 8,250,000 4,250,000 6,010,000 (1,760,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Master Energy 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 January 31st to determine whether Master Energy should be continued (Alternative 1) or discontinued (Alternative 2). b. Should Master Energy be retained? Explain.Aya Company Sold a total of 7,000 units of its product. More data are as follows: Sales 700,000 Variable and manufacturing cost 400,000 Fixed manufacturing overhead Contribution margin 180,000 250,000 What is the amount of variable selling and administrative cost?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)…
- During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: sales (@$64 per unit) Cost of goods sold (@ $39 per unit) Gross margin selling and administrative expenses* Net operating income *$3 per unit variable; $252,000 fixed each year. The company's $39 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($400,000 25,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 25,000 20,000 Year 2 25,000 30,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using variable costing, what is the unit product cost for both years? Unit product cost Required 3 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating Income In Year 1 and In Year 2? 3.…The following information is available from the accounting records of Wisconsin International Inc.. Sales at 65% of Capacity $89,500 Fixed costs $36,950 Variable costs $28,350 Total costs $65,300 Net Income $24,200 a) Compute the break-even point in sales dollars (round off two the nearest cent) $ b) Compute the break-even point as a percent of capacity. (round off two decimal places) %Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (9,000 units) $ 20.00 $ 180,000 Variable costs Direct materials 4.25 38,250 Direct labor 6.00 54,000 Overhead 2.00 18,000 Contribution margin 7.75 69,750 Fixed costs Fixed overhead 4.25 38,250 Income $ 3.50 $ 31,500 A foreign company offers to buy 2,500 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,000 for the purchase of special tools. Markson’s annual productive capacity is 13,500 units. If Markson accepts this additional business, its profits will: