How do I fill out the chart? can be reduced 40% byinstalling a machine that automates several operations. To obtain these savings, the company must increase its annualfixed costs by $241,000. The selling price per unit will not change.@ 2ASTRO COMPANYContribution Margin Income StatementFor Year Ended December 31Sales ($50 per unit)Variable costs ($40 per unit)Contribution marginFixed costsIncome1. Compute the break-even point in dollar sales for next year assuming the machine is installed.Contribution Margin Per UnitContribution Margin RatioF2W1Break-Even Point in Dollar Sales with New Machine:Numerator:11Numerator:#380F3E11$4♂$ 1,000,000800,000200,000175,000$ 25,000F4ProposedDenominator:Denominator:%LO5< Prev**********F5< C6Contribution Margin RatioContribution margin ratioF6Break-Even Point in DollarsBreak-even point in dollars12 2 3 of 3R T Y&7F7Next >ERANDORU8DIIF8 mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.johnstoncc.ment!Required information[The following information appliestothe questions displayedASTRO COMPANYContribution Margin Income StatementFor Year Ended December 31Sales ($50 per unit)Variable costs ($40 per unit)Contribution marginFixed costsIncomeAstro Company sold 20,000 units of its only product and reported income of $25,000 for the current year. During aplanning session for next year's activities, the production manager notes that variable costs can be reduced 40% byinstalling a machine that automates several operations. To obtain these savings, the company must increase its annualfixed costs by $241,000. The selling price per unit will not change.below.]$ 1,000,000800,000200,000175,000$ 25,000Saved

In accounting, the breakeven point is calculated by dividing the fixed costs of production by the…

Answered: fixed costs by $241,000. The selling…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
If the contribution margin ratio for France Company is 32%, sales are $488,000, and fixed costs are $110,000, the operating income is Oa. S110,000 Ob. $46,160 Oc. $36,928 Od. S156,160 Previous Submit Te Reflector-3.2.1.dmg
ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser=D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghm Assume the following (1) contribution margin = $150,0000 (2) net operating income $15,000, and (3) sales increase by 14%. Given these three assumptions, net operating income will increase by: Multiple Choice 15 1%. 14%. 116. 140%. < Prev 15 of 50 Next 2 Search for anything
Jilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Next
Student ID #: 11. George Corporation has the following information for the current year: Selling price per Variable costs per unit Fixed costs unit 2$ 10.00 2$ 6.00 $1,000.00 Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units Profit area A. B. С. D. Е. F. G. Н. Loss area 6,000 5,000 4,000 3,000 2,000 1,000 Retm 100 200 300 400 500 Earnin Qty (# Units) 3 Dollars ($)
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin $3,180,000 2,544,000 636,000 480,000 $ 156,000 Fixed costs Pretax income $ 1. Compute Hudson Co's break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. Break-even point units 2. Break-even point
* CengageNOWv2 | Online teachin x now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $182,500 10 Selling expenses: Sales salaries and commissions 37,900 4 Advertising 12,800 Travel 2,900 Miscellaneous selling expense 3,100 4 Administrative expenses: Office and officers' salaries 37,100 Supplies 4,600 2…
Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin $3,136,000 2,352,000 784,000 567,000 $ 217,000 Fixed costs Pretax income 1. Assume Hudson Co. has a target pretax income of $156,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety %
Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…
1. Pantok Manufacturing, most recent income statement follows: Total P208,000 144,000 Sales (8,000 units) Variable expenses.... Contribution margin.. Fixed expenses....... Net operating Income..... Per unit P 26.00 18.00 64,000 P 8.00 .56,000 ..P 8,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): a. The sales volume increases by 50 units. b. The sales volume declines by 50 units. c. The sales volume is 7,000 units.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials 14 Direct labor 3 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 1 2$ 1 $330,000 $240,000 During the year, the company produced 33,000 units and sold 24,000 units. The selling price of the company's product is $44 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cot. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.

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