Use the following information to answer questions 1 through 5. Jump Technology uses an operational excellence strategy and manufactures inexpensive tablet computers. Its inventory policy requires that it hold zero inventory at the end of each month. Annual financial data follows. Units produced. Units sold.... Revenue.. Less: Costs Materials used in tablet. Factory supervisor salaries. Magazine Advertising... Direct labor......... Depreciation on plant machinery... Shipping to customers... Plant utilities (all variable). Plant rent.... Property taxes on the plant.. Net Operating Income... 10,000 10,000 Total $2,000,000. 550,000. 100,000. 150,000. 80,000. 120,000. 110,000. 70,000. 250,000. 20.000 $550,000 Per Unit $200.00 55.00 10.00 15.00 8.00 12.00 11.00 7.00 25.00 2.00 $55.00 1. Compute the total cost of goods sold that will appear on Jump's gross margin format income statement. 2. Compute the total contribution margin that will appear on Jump's contribution margin format income statement.
Use the following information to answer questions 1 through 5. Jump Technology uses an operational excellence strategy and manufactures inexpensive tablet computers. Its inventory policy requires that it hold zero inventory at the end of each month. Annual financial data follows. Units produced. Units sold.... Revenue.. Less: Costs Materials used in tablet. Factory supervisor salaries. Magazine Advertising... Direct labor......... Depreciation on plant machinery... Shipping to customers... Plant utilities (all variable). Plant rent.... Property taxes on the plant.. Net Operating Income... 10,000 10,000 Total $2,000,000. 550,000. 100,000. 150,000. 80,000. 120,000. 110,000. 70,000. 250,000. 20.000 $550,000 Per Unit $200.00 55.00 10.00 15.00 8.00 12.00 11.00 7.00 25.00 2.00 $55.00 1. Compute the total cost of goods sold that will appear on Jump's gross margin format income statement. 2. Compute the total contribution margin that will appear on Jump's contribution margin format income statement.
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3EB: The following information is from Dessert Dynasty. The company runs three stores and the December...
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Transcribed Image Text:Use the following information to answer questions 1 through 5.
Jump Technology uses an operational excellence strategy and manufactures inexpensive tablet computers.
Its inventory policy requires that it hold zero inventory at the end of each month. Annual financial data
follows.
Units produced..
Units sold.
Revenue.
Less: Costs
Materials used in tablet...
Factory supervisor salaries..
Magazine Advertising...
Direct labor....
Depreciation on plant machinery.
Shipping to customers.
Plant utilities (all variable).
Plant rent...
Property taxes on the plant.
Net Operating Income...
10,000
10,000
Total
$2,000,000...
3
550,000.
100,000.
150,000.
80,000.
120,000.
110,000.
70,000.
250,000.
20.000.
$550,000.
Per Unit
$200.00
55.00
10.00
15.00
.8.00
12.00
11.00
7.00
25.00
2.00
$55.00
1. Compute the total cost of goods sold that will appear on Jump's gross margin format income
statement.
2. Compute the total contribution margin that will appear on Jump's contribution margin format
income statement.
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