Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 22, Problem 5R
Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.
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I need this question answer general Accounting
Question 5 of 5
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Your answer is partially correct.
15.29/20
E !
The single-column CVP income statements shown below are available for Carla Vista Company and Sandhill Company.
Carla Vista Co.
Sandhill Co.
Sales
$502,000
$502,000
Variable costs
250,000
49,000
Contribution margin
252,000
453,000
Fixed costs
152,000
353,000
Net income
$100,000
$100,000
(a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15)
Degree of Operating Leverage
Carla Vista
Sandhill
252
453
(b) Assuming that sales revenue increases by 10% (dto a 10% increase in the number of units sold), prepare a single-column CVP
income statement for each company.
Sales Revenue
Varlable Costs
Contribution Margin
Fixed Costs
Net Income/(Loss)
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EA
Carla Vista Company
552200
275000
277000
152000
125200
Sandhill Company
552200
54450
497750
353000
144750
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Charger,inc. Provided the following information please solve this question general Accounting
Chapter 22 Solutions
Excel Applications for Accounting Principles
Ch. 22 - Ranger Industries has provided the following...Ch. 22 - Open the file MASTER from the website for this...Ch. 22 - Review the completed master budget and answer the...Ch. 22 - Suppose the company has to revise its estimates...Ch. 22 - Suppose the company has just the opposite news and...Ch. 22 - Prob. 6R
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