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....

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Oriole Inc. earned operating income of $110,000 during 2021. The company wants to earn operating income of $154,000 during 2022. Its fixed costs are expected to be $61,600, and variable costs are expected to be 30% of sales. (a) Determine the required sales to meet the target operating income during 2022. Required sales $
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)
(b) Additional information regarding the costs of the company are given: Manufacturing costs Variable cost per unit Budgeted fixed manufacturing overhead per year $32,400,000 $25 Selling and administrative costs Variable cost per unit Total fixed cost $5 $5,000,000 Actual production in 2020 7,600,000 units Actual Sales in 2020 7,000,000 units Selling price Actual fixed manufacturing overhead in 2020 $50 per unit $32,000,000 The practical capacity level is used to calculate the budgeted fixed manufacturing cost per unit. There are no variable cost variances. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. There has been no beginning inventory in 2020.
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%
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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
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
The CVP income statements shown below are available for AX Company and ZY Company at the beginning of 2020. AX Company ZY Company Sales $500,000 $500,000 Variable Costs $110,000 $10,000 Contribution Margin $390,000 $490,000 Fixed Costs $100,000 $200,000 Net Income $290,000 $290,000 Instructions a. Using the breakeven point in dollar, determine which company could be in risk? b. Determine the degree of operating leverage for each company. c. During 2020, both companies faced problems resulted in having a decline in sales by $50,000 and that affected rapidly to the net income during that year. Which company would produce less net income?
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin $3,300, өөө 2,640,000 2$ 660,000 360,000 Fixed costs Pretax income $300,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 5% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 5%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below.
You have the following information about a company in 2021: Total Costs were $174.7 million. Assume the Variable Costs were 60% and the rest were Fixed Costs. Sales Volume in thousands was 361.7 and will not change in the future. Cost inflation in 2022 was 5%. What was the variable cost per unit in 2022? Select one: O A. $290.1 O B. $105.2 O C. $483.5 O D. $304.3
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,990 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $35,880
Prepare the income statement for the year ended 31 December 2020 using: Absorption costing Variable costing

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