Sunn Company manufactures a single product that sells for $140 per unit and whose variable costs are $112 per unit. The company's annual fixed costs are $400.400 (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $128,000. what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales
Q: Newark Company has provided the following information: • Cash sales, $450,000 • Credit sales,…
A: The cash flow statement is a report that outlines the money coming in and going out of a business…
Q: Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using…
A: 1. Direct materials cost variance: The difference between the actual cost of materials used and the…
Q: [The following information applies to the questions displayed below.] The following are the…
A: Under the periodic inventory system ending inventory and cost of goods sold is calculated at the end…
Q: The company purchased a piece of Equipment on 12/1/2023 for use in its business operations. The…
A: The loan is taken by the entity when it needs money. The entity can take a loan which can be repaid…
Q: E5.21 (LO 1, 2, 4) Shady Lady sells window coverings to both commercial and residential customers.…
A: Activity-Based Costing (ABC) is a costing methodology that assigns overhead costs to specific…
Q: On September 1, the balance of the Accounts Receivable control account in the general ledger of…
A: A general journal is defined as a book in which the raw data pertaining to the transactions or…
Q: On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation.…
A: A lease is an agreement between the lessor and the lessee where the lessor transfers the asset to…
Q: On January 1, 2025, Sunland Co. redeemed its 15-year bonds of $6970000 par value for 103. They were…
A: Bonds: A bond is simply refers to a type of security where the issuer owes the holder a debt.…
Q: Duval Industries purchases $110,000 of machinery on January 1, 2020. The machinery is expected to…
A: Depreciation expense:— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Santosh Plastics Inc. purchased a new machine one year ago at a cost of $66,000. Although the…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Exercise 12-34 (Static) Organization Structure and Responsibility Centers (LO 12-3) Evergreen…
A: The given question is asking about the responsibility center. Responsibility Center:The…
Q: In September, Numbers Incorporated sold 40,000 units of its only product for $361,000, and incurred…
A: The sales volume variance is the difference between flexible budget and master budget. The operating…
Q: Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most…
A: This budget is prepared to estimate the number of units to be produced for desired sales during the…
Q: Operating income and tax rates for B.J. Company's first three years of operations were as follows:…
A: Deferred Tax:A deferred tax adjustment is prevalent where there is a temporary difference in the…
Q: Wendell's Donut Shoppe is investigating the purchase of a new $37,700 donut-making machine. The new…
A: Annual cash inflows = Annual savings in part time help + Added contribution margin on expanded…
Q: premium. Interest is payable quarterly. Record the appropriate journal entries if you knew that they…
A: A bond is an instrument that is a type of loan given by an investor to a borrower. It gives a fixed…
Q: Rahul
A: The objective of the question is to record the purchase of real estate by Prism Ltd. in the form of…
Q: eBook Print Item Select "Yes" or "No" to indicate whether each account requires adjustment. Select a…
A: The objective of the question is to determine whether each of the listed accounts requires an…
Q: Dazzle, Incorporated produces beads for jewelry making use. The following information summarizes…
A: Dear student, below is the answer to your assignment:Part 1: Answer:Debit Raw Materials Inventory…
Q: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.
A: Estimated Uncollectible Accounts Amount = Accounts Receivable x Estimated Percent UncollectibleBad…
Q: Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or…
A: Solution:-The inquiry involves the computation of variances in direct materials (silver and…
Q: Required: (round dollar amounts to whole dollars, round percentages to 2 decimal places: 23.45%) 1)…
A: The percentage of completion method in construction costing, reports the revenues and expenditure on…
Q: Required information [The following information applies to the questions displayed below.] Shadee…
A: The budget is a financial plan prepared by the company that comprises of the future cash inflows and…
Q: Variable and Absorption CostingChandler Company sells its product for $108 per unit. Variable…
A: Part 1: Answer:Using variable costing, Chandler Company's net income would be…
Q: Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of…
A: The term "risk of material misstatement" refers to the likelihood that the financial statements…
Q: Mccabe Corporation uses the weighted-average method in its process costing. The following data…
A: Equivalent units of production (EUP) is a concept used in process costing to measure the total…
Q: Solve both questions with explanation and proper formatting
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: vvv Limited purchased a machine for $300,000 cash on 1 July 2005. The useful life of the machine is…
A: As per IAS 16 Property, Plant and Equipment outlines the accounting treatment for most types of…
Q: JC recently graduated from veterinary school and opened their own professional practice. This year,…
A: Self-Employment Tax -Small business owners and independent contractors owe the federal government…
Q: Dear Expert Emily is a divorced taxpayer with two dependent children. She received alimony payments…
A: Adjusted Gross Income: One important number on an individual's US tax return is Adjusted Gross…
Q: ***** Inventory Valuation: If a company uses the LIFO (Last-In-First-Out) method for inventory…
A: Inventory valuation refers to the process of assigning a dollars-and-cents value to the force or…
Q: Exercise 9-11 (Algo) Working Backwards from Labor Variances [LO9-5] The auto repair shop of Quality…
A: Direct labor variance is the difference between standard direct labor cost for actual production and…
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: A cash budget is a financial tool used by businesses to plan and manage their cash inflows and…
Q: Sales Absorption Costing Income Statement Cost of Goods Sold: $ 1662500 Beginning Inventory $…
A: Part 1: Answer:a. For the Absorption Costing Income Statement:Sales: $51,662,500Cost of Goods…
Q: [The following information applies to the questions displayed below] Preble Company manufactures one…
A: Direct Material Quantity Variance:When the actual quantity of materials used deviates from the…
Q: The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot…
A: Variance analysis is the difference between the standard performance and the actual performance,…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Flexible Budget for variable cost is calculated by multiplying budgeted variable cost per activity…
Q: Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook…
A: Contingent liability refers to a potential obligation or liability that may arise in the future…
Q: Please do not give solution in image format thanku
A: Cash Budget is prepared to analysis the cash transaction or cash flow of business.Non-cash items…
Q: Irwin, Incorporated constructed a machine at a total cost of $35 million. Construction was completed…
A: Dear student,Part 1: Answer:The journal entry relating to the machine for 2024 would be as follows:…
Q: Several years ago Brant, Inc., sold $1,020,000 in bonds to the public. Annual cash interest of 8…
A: Journal entry :A journal entry is a method of recording transactions in the book of the original…
Q: Horticultural Products Inc. reported $545,863 profit in 2023 and declared preferred dividends of…
A: Weighted average outstanding shares - It is the adjusted amount of shares of a company in a…
Q: Bramble Company produced 20, 300 units and sold 18,060 during the current year. Under absorption…
A: Absorption costing means where inventory is valued at total manufacturing cost.. Variable costing…
Q: Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in…
A: Equivalent units of production are an indication to show the work in process inventory at the end of…
Q: EX 9-4 Direct materials variances Obj. 3 The following data relate to the direct materials cost for…
A: Direct Material Variance means the actual difference between the actual costs of the direct…
Q: Presented below is information related to the Southern Division of Lumber Ltd. Contribution margin…
A: To calculate the Southern Division's Return on investment (ROI),you can use the formula:ROI =…
Q: Ida Company produce that is similar to a xylo data for the company's Units in beginning Units
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments:…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Exercise 20-17 (Algo) Preparation of cash budgets (for Kayak Company budgeted the following cash…
A: The cash budget is prepared to record the cash receipts and cash disbursements during the period.…
Step by step
Solved in 3 steps with 2 images
- A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio? A.10% B.40% C. 60% D. 90%A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
- Question No.2 Menlo Company manufactures and sells a single product. The company’s sales and expenses for last quarter are as follows: Unit Cost $30 $12 $18 Total Cost $450,000 $180,000 $270,000 $216,000 $054,000 Sales. Less variable expenses.. Contribution margin. Less fixed expenses. Net operating income. Required: What is the B.E.P in units sold and in sales dollars? What is the total contribution at B.E.P? How many units must sold each quarter to earn a target profit of $90,000? Use the contribution margin method. Verify your answer by preparing a contribution format income statement at the target sales level. Refer to original data, compute the margin of safety in both dollars and %age terms. What is the company CM ratio? If sales increase by $50,000 per quarter by how much would you expect quarterly net operating income to increase?Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $104 per unit and whose variable costs are $78 per unit. The company's annual fixed costs are $369,200. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $127,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Sales Amount $ 0 Required 1 Required 2 >
- Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 8,000 units. Cost formulas also are shown: Revenues $ 34,800 Cost of goods sold ($5,700 + $2.10/unit) 22,500 Gross profit $ 12,300 Operating expenses: Selling ($1,180 + $0.09/unit) 1,900 Administrative ($3,650 + $0.20/unit) 5,250 Operating income $ 5,150 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 8,000 units to 12,000 units. 4,000 units. Refer to your answer to part a for total revenues of $34,800. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $11,000. Decrease by $3,000.4 Rundle Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs $64 25% a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $384,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $40,000, what must the sales be in dollars? In units? c. If the sales price increases to $80 and variable costs do not change, what is the new break-even point in dollars? In units?Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
- CLEAR MY CHOICE Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $90; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $12, Manufacturing overhead $7, and Selling costs $6; Annual fixed costs $70,000. What is the contribution margin percentage? O a. None of the given answers O b. 44.4% O c. 70% O d. 62% O e. 55.6% NEXT PAGE AGE W nere to searchQuestion 1 Following is the contribution margin income statement of a single product company: Total Per unit Sales $1,200,000 $80 |Less variable expenses $840,000 $56 Contribution margin 360,000 $24 Less fixed expenses 300,000 Net operating income $60,000 Required: 1. Calculate break-even point in units and dollars. 2. What is the contribution margin at break-even point? 3. Compute the number of units to be sold to earn a profit of $36,000. 4. Compute the margin of safety using original data. 5. Compute CM ratio. 6. Compute the expected increase in monthly net operating if sales increase by $160,000 and fixed expenses do not change. Question 2 Part A Since 1993, Debbie Osborne has run a small market stall in Croydon, selling flowers to the public six days a week. Her main costs are an operating license fee paid to the local council, the weekly hire of a van, her wages and the costs of the flowers. Debbie estimates that her fixed costs amount to £400 for the week. On average the…1 2 The following information describes a product expected to be produced and sold by Hadley Company: Selling price Variable costs $80 per unit $32 per unit $630,000 Total fixed costs Required: a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollar sales. c. What dollar amount of sales would be necessary to achieve a pretax income of $120,000? Edit Format Table 12pt v Paragraph | BIU V Αν BVT² V || : F2 F3 F4 -0- 2 W 9. # 3 E SA 4 F5 R F6 % 5 Ø T F7 < 다 6 F8 Y & 7 F9