The Gasson Company sells three products,Product A, Product B and Product C, andhad sales of $1,000,000 during the month ofJune. The company's overall contributionmargin ratio was 37% and fixed expensestotalled $350,000.ProductProductProductABсSales $500,000$300,000 $200,000Traceable 120,000 100,00060,000fixed costsVariable 300,000 180,000expensesThe net operating income for the companyas a whole for June was:Select one:a. $20,000b. $90,000c. $170,000d. $300,000

Step 1:In given question only asked for net operating income for June..so it's not required to…

Answered: The Gasson Company sells three…

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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Income Statements Segmented by TerritoryScript, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC.Product Line and Company Income StatementsFor Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (8,000) (6,000) (14,000) Product margin $7,000 $12,000 $19,000 Less common fixed expenses (6,000) Net income $13,000 Pens and pencils are sold in two territories, Florida and Alabama, as follows: Florida Alabama Pen sales $11,000 $14,000 Pencil sales 13,000 17,000 Total sales $24,000 $31,000 The preceding common fixed expenses are traceable to each territory as follows: Florida fixed expenses $2,000 Alabama fixed expenses 3,000 Home office administration fixed expenses 1,000 Total common fixed expenses $6,000 The…
Norwood Company has the following information for July: Sales $440,000 Variable cost of goods sold 198,000 Fixed manufacturing costs 70,400 Variable selling and administrative expenses 44,000 Fixed selling and administrative expenses 26,400 Determine the following for Norwood Company for the month of July: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income $fill in the blank 3
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 10.00 $2.40 $ 131,000 Greengrow $ 34.00 $14.00 $ 31,000 Last year the company produced and sold 42,000 units of Weedban and 16,500 units of Greengrow. Its annual common fixed expenses are $111,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin. expenses Direct fixed expenses Sales Direct fixed selling and admin. expenses Variable expenses Operating income Common expenses are $105,000 for the year. What is the income for Tyler Company? $102,500 $120,500 $99,000 $101,000 Product A $38,000 19,500 250,000 38,000 42,000 $112,500 " Product B $31,000 34,500 210,000 22,000 31,000 $91,500
Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 270,000 $ 370,000 $ 370,000 Variable costs 57,000 220,000 137,100 Fixed costs total $370,000. What sales volume would generate an operating profit of $235,000? (Assume the current product mix.)
AB Company produces two Products: A and B. Product A has a contribution margin of $30 per unit. Product B has a contribution margin of $5 per unit. The sales mix is three units of product A for each two units of product B. The company total monthly fixed cost is $480,000. During the month, how many units should the company sell of each ?product to achieve a target operating income of $150,000 .units of product A and 10,600 units of product B 15,900 a O .units of product A and 5,000 units of product B 30,000 b O .18,900units of product A and 12,600 units of product B .c O None of the choices given d O .units of product A and 11,600 units of product B 17,400 .e O
The following data are available for the Valentine Corporation for a recent month: Product A Product B Product C Total Selling price $23 $69 $115 Sales $115,000 $172,500 $287,500 |Variable |$91,000 $104,000 $27,000 Expenses Contribution $24,000 $68,500 $260,500 Margin Fixed $55,000 Expenses Net Operating Income What is the sales revenue required from Product C at the break even point?
Crane Corporation produces and sells two products, Basic and Super. Data for activity during March are as follows: Basic Super Sales $213,000 $263,000 Contribution margin 25% 28% Total fixed costs $78,000 $78,000 Prepare a segment margin income statement. Omit the heading. Common fixed costs of $38,000 are allocated Basic and $43,000 to Super. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Basic Super Total $ $ $ tA
Giannini Incorporated, which produces and sells a single product, has provided the following contribution format income statement for March: Sales (5,000 units) Variable expenses Contribution $ 305,000 150,000 155,000 104,400 $ 50,600 margin Fixed expenses Net operating income Required: Redo the company's contribution format income statement assuming that the company sells 5,200 units.

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