QUESTION 45:
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2017
Sales
$
3,000,000...
QUESTION 45:
PHOENIX COMPANY
Fixed Budget Report
For Year Ended December 31, 2017
Sales
$
3,000,000
Cost of goods sold
Direct materials
$
900,000
Direct labor
210,000
Machinery repairs (variable
cost)
45,000
Depreciation—Plant equipment
(straight-line)
330,000
Utilities ($45,000 is
variable)
180,000
Plant management salaries
190,000
1,855,000
Gross profit
1,145,000
Selling expenses
Packaging
90,000
Shipping
105,000
Sales salary (fixed annual
amount)
235,000
430,000
General and administrative
expenses
Advertising expense
150,000
Salaries
230,000
Entertainment expense
80,000
460,000
Income from operations
$
255,000...
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant
range of production is 500 units to 1,500 units):
Sales
$
23,900
Variable expenses
13,300
Contribution margin
10,600
Fixed expenses
7,632
Net operating income
$
2,968
Required:
What is the degree of operating leverage
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant
range...
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant
range of production is 500 units to 1,500 units):
Sales
$
70,000
Variable expenses
38,500
Contribution margin
31,500
Fixed expenses
23,310
Net operating income
$
8,190
What is the break-even point in dollar sales?
. How many units must be sold to achieve a target profit of
$18,900?
What is the margin of safety in dollars? What is the margin of...
Ansara Company had the following abbreviated income statement
for the year ended December 31, 20Y2:
1...
Ansara Company had the following abbreviated income statement
for the year ended December 31, 20Y2:
1
(in millions)
2
Sales
$18,838.00
3
Cost of goods sold
$15,495.00
4
Selling, administrative, and other expenses
2,002.00
5
Total expenses
$17,497.00
6
Income from operations
$1,341.00
Assume that there were $3,804 million fixed manufacturing costs
and $1,166 million fixed selling, administrative, and other costs
for the year.
The finished goods inventories at the beginning and end of the
year from the balance sheet...
1-4
Oslo Company prepared the following contribution format income
statement based on a sales volume of...
1-4
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant
range of production is 500 units to 1,500 units):
Sales
$
25,000
Variable expenses
17,500
Contribution margin
7,500
Fixed expenses
4,200
Net operating income
$
3,300
What is the contribution margin per unit?
What is the contribution margin ratio?
What is the variable expense ratio?
f sales increase to 1,001 units, what would be the increase in
net operating income?
Crane Corporation has collected the following information after
its first year of sales. Sales were $1,600,000...
Crane Corporation has collected the following information after
its first year of sales. Sales were $1,600,000 on 100,000 units,
selling expenses $240,000 (40% variable and 60% fixed), direct
materials $514,000, direct labor $270,800, administrative expenses
$280,000 (20% variable and 80% fixed), and manufacturing overhead
$376,000 (70% variable and 30% fixed). Top management has asked you
to do a CVP analysis so that it can make plans for the coming year.
It has projected that unit sales will increase by 10%...
Polk Company developed the following information for its
product:
Per unit
Sales price $90
Variable cost...
Polk Company developed the following information for its
product:
Per unit
Sales price $90
Variable cost 63
Contribution margin $27
Total fixed costs $1,080,000
Instructions
Answer the following independent questions and show computations
using the contribution margin technique to support your
answers.
1. How many units must be sold to break even?
2. What is the total sales that must be generated for the company
to earn a profit of $60,000?
3. If the company is presently selling 45,000 units,...
Rush Company developed the following information for its
product: Per Unit Sales price $90 Variable cost...
Rush Company developed the following information for its
product: Per Unit Sales price $90 Variable cost $54 Contribution
margin $36 Total fixed costs $1,080,000 Instructions: Answer the
following independent questions and show computations using the
contribution margin technique to support your answers. (Partial
credit will be awarded if you show your work.)
How many units must be sold to break even?
What is the total sales that must be generated for the company
to earn a profit of $60,000?
If...
The income statement for Callister Company for 2017 appears
below. CALLISTER COMPANY Income Statement For the...
The income statement for Callister Company for 2017 appears
below. CALLISTER COMPANY Income Statement For the Year Ended
December 31, 2017
Sales (40,000 units)
...................................................................................
$1,000,000
Variable expenses
.....................................................................................
700,000
Contribution margin
....................................................................................
300,000
Fixed expenses
..........................................................................................
360,000
Net income (loss)
.......................................................................................
$ (60,000)
Show computations using the contribution margin technique to
support your answers:
1. What was the company's break-even point in sales dollars in
2017?
2. How many additional units would the company have had to sell
in...
XYZ Inc. has provided to you an income statement using
the contribution format.
Sales (1,000 units) ...
XYZ Inc. has provided to you an income statement using
the contribution format.
Sales (1,000 units)
$ 400,000
Variable
Expenses
300,000
Contribution Margin
100,000
Fixed
Expenses
70,000
Net Operating Income
$ 30,000
(The activity is within the relevant range).
If advertising spending increases by $20,000, the variable cost
per unit increases by $10, and unit sales increase by 50 units, the
net operating income would be closest to:
A.$4,500
B.$21,500
C.$9,450
D. $10,000
Flank Inc....