Explanation Return on sales ratio: The ratio which evaluates the amount of net income earned for every dollar of net sales is referred to as return on sales ratio. Higher ratio indicates highly profitable company. Return on sales ratio = Net income Net sales Determine the return on sales ratio for Company B for the year 2011. Total revenues =$3,500,000 Total expenses = $2,800,000 Determine the net income. Net income = Total revenues − Total expenses = $ 3 , 500 , 000 − $ 2 , 800 , 000 = $ 700 , 000 Determine the return on sales ratio

Financial Accounting for Undergr. -Text Only (Instructor's)

3rd Edition

ISBN: 9781618531629

Author: WALLACE

Publisher: Cambridge Business Publishers

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Chapter 4, Problem 9SE

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Determine the return on sales ratio for Incorporation B.

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Elba Industries produces a single product: solar-powered lanterns for outdoor use. The budget going into the current year anticipated a selling price of $72 per unit. Due to market competition, the company had to reduce the selling price by 12% during the year. Budgeted variable costs per unit are $45, and budgeted total fixed costs are $180,000 for the year. The anticipated sales volume for the year was 15,000 units. Actual sales volume was 6% lower than budget. What was the sales price variance for the year?

Calculate the labor variance

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Financial Accounting for Undergr. -Text Only (Instructor's)

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