Tyson Company reported the following income statement information for June: Sales revenue Variable costs Fixed costs. ... $250,000 $ 27,500 $ 70,000 Currently, the sales clerks receive a fixed salary of $5,500 per month. In July, Tyson Company discontinued this fixed salary and instead paid the sales clerks a commission of 3% of sales. Tyson Company reported sales revenue of $271,000 for the month of July. Calculate Tyson Company's margin of safety for July.

Tyson Company reported the following income statement information for June: Sales revenue Variable costs Fixed costs. ... $250,000 $ 27,500 $ 70,000 Currently, the sales clerks receive a fixed salary of $5,500 per month. In July, Tyson Company discontinued this fixed salary and instead paid the sales clerks a commission of 3% of sales. Tyson Company reported sales revenue of $271,000 for the month of July. Calculate Tyson Company's margin of safety for July.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

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

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 33BEB: Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures...

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West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
Presented here is the income statement for Fairchild Co. for March: Sales $ 81,500 Cost of goods sold 43,000 Gross profit $ 38,500 Operating expenses 31,000 Operating income $ 7,500 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.Required: Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 10%. Calculate the amount of revenue required for Fairchild to break even. rev: 10_17_2020_QC_CS-236193
Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
The following information is available for a company's cost of sales over the last five months. MonthUnits soldCost of salesJanuary560$28,600February740$34,000March1,300$46,000April2,560$58,000 Using the high-low method, the estimated total fixed cost is:
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Vulcan Company's contribution format income statement for June is es follows: Vulcan Company Income Statenent For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses $ 9e0, e00 488, 00e 492, 800 455,000 Net operating income $ 37,000 Management is disoppointed with the company's performance and is wondering what con be done to improve profits. By examining soles and cost records, you have determined the following: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $168,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $204,000 and $120,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $210,000 and…
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