Managerial Accounting
Managerial Accounting
1st Edition
ISBN: 9780137024872
Author: Datar, Srikant M./
Publisher: Pearson College Div
Question
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Chapter 3, Problem 13E

1a.

To determine

Compute the current annual operating income.

1b.

To determine

Compute present break-even point in revenues.

2.

To determine

Calculate the new operating income, if $0.06 per unit increases in variable cost.

3.

To determine

Calculate the new operating income, if fixed costs increases by 20% and units sold increases by 20%.

4.

To determine

Calculate the new operating income, if fixed cost, selling price, variable cost and units sold decreases.

5.

To determine

Calculate the new break-even point in units, if fixed cost increases by 20%.

6.

To determine

Calculate the new break-even point in units, if fixed cost and selling price increases.

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The alphabetical list of items may be relevant in the preparation of Statement of Comprehensive Income of Way Inc. is provided below: Actuarial gains on defined benefit pension plans recognized outside profit or loss Decrease in inventories of finished goods and work in progress P 1,333 107,900 Depreciation and amortization expense 17,000 Employee benefit expense 43,000 Exchange differences gain on translating foreign operations 10,667 Finance costs 18,000 Gains on property revaluation 3,367 Income tax expense 32,000 Income tax relating to components of other comprehensive income 9,334 Loss for the year from discontinued operations 30,500 Other expenses 5,500 Other income.. 11,300 Raw materials and consumables used 92,000 Revenue 355,000 Share of other comprehensive income of associates (unrealized loss of FA-DB@FVOCI.... Share of profit associates....... 700 30,100 Unrealized gain on FA-DB@FV-OCI... 26,667 Unrealized loss on derivatives in an effective cash flow hedge.. 4,000 Work…
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