Provide correct solution and accounting question The Lion Manufacturing Company collected the following annualinformation on Total Net Sales and Total Operating Costs:Year Total Net Sales ($) Total Operating Costs ($)2020 6,400,0002021 7,100,0003,250,0003,600,000In 2022, total net sales are budgeted to be $7,600,000.Using the high-low method, estimate the total operating costs for 2022,assuming that both total fixed costs and variable costs as a percentage oftotal net sales remain constant as in 2020 and 2021.What is the estimated total operating cost for 2022?

Step 1: Definition of High-Low MethodThe High-Low Method is a technique used to estimate fixed and…

Answered: The Lion Manufacturing Company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

See similar textbooks

Similar questions

Please provide solution for this general accounting question
The GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
What is the contribution margin ratio of this financial accounting question?
KRIS Ltd forecasts the 2019 sale of its single product, COS, to 200,000 units at $120 per unit with a total budgeted net income of $2,775,000. Estimated annual fixed costs are $3,500,000. Corporate income tax rate is 25%. Required 1. Using the above data, calculate: (a) the contribution margin and the contribution margin ratio (b) the breakeven volume and breakeven revenue (Note: do not resort to multiplying volume by unit price)
The fixed costs of operating the Bunatta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Assume that budgeted maintenance-hours are used to calculate the allocation rates. Using a single-rate allocation and budgeted usage, how much will each department be allocated? Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
Using Actual Results for 2020, Prepare Budgeted Income Statement for 2021 2020 Revenues Actual Sales of Equipment $ 6,000,00O Sales of Maintenance Contracts 1,800,000 Total r evenues $ 7,800,000 Cost of goods sold 4,600,000 Gross margin $ 3,200,00O Operating expenses Marketing 600,000 Distribution 150,000 Customer maintenance 1,000,000 Administration 900,000 Total expenses 2,650,000 Operating Income $ 550,000 1. Selling prices of equipment are expected to increase by 10% as the economic recovery begins. 2. Selling price of maintenance contract is expected to remain unchanged. 3. Equipment sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contracts. 4. Cost of each unit of equipment sold is expected to increase by 3% to pay for the necessary technology and quality improvements. 5. Marketing costs are expected to increase by $250,000, but administration costs are expected to remain the same. 6. Distribution costs vary in proportion to…
I need step by step solution with accounting
In 2023, Dolan Distributors had sales of $914,000, fixed costs of $139,200, variable costs of $514,800, and operating income of $260,000. What is Dolan's contribution margin ratio ? 56.3% 50.5% 27.9% 77.6% 43.7%
Determine the number of units?
Matthew Corporation is developing its budgets for 2024 and, for the first time, will use the kaizen approach. The initial 2024 income statement, based on static data from 2023 is as follows: Sales (200,000 units) $2,000,000 Less: Cost of goods sold 1,200,000 Gross profit 800,000 Operating expenses (includes $200,000 of depreciation) 600,000 Operating income $200,000 Selling prices for 2024 are expected to increase by 10%, and sales volume in units will decrease by 12%. The cost of goods sold as estimated by the kaizen approach will decline by 8% per unit. Other…
Bramble Corp. prepared a 2022 budget for 228000 units of product. Actual production in 2022 was 160000 units. To be most useful, what amounts should a performance report for this company compare? The actual results for 160000 units with the original budget for 228000 units. The actual results for 160000 units with a new budget for 160000 units. The actual results for 160000 units with last year's actual results for 167600 units. O All of these comparisons are equally useful.
In planning its operations for 2021 based on a sales forecast of P6,000,000 and breakeven point in pesos of P4,000,000, Thone, Inc., prepared the following estimated data: Cost and Expenses (Variable) Direct materials P1,600,000 Direct labor 1,400,000 Factory overhead 600,000 Selling expenses 240,000 Administrative expenses 60,000 What would be the amount of fixed cost and expenses? 1350,000 1,400,000 c. 1,450,000 d. 1,500,000

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS