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%...
Putnam Company…. Below is an income statement for Putnam
Company:
Sales
$600,000
Variable costs
(192,000)
Contribution...
Putnam Company…. Below is an income statement for Putnam
Company:
Sales
$600,000
Variable costs
(192,000)
Contribution margin
$408,000
Fixed costs
(300,000)
Profit before taxes
$108,000
What was Putnam’s margin of safety expressed as a
percentage of sales? Round your answer to 4 decimal places and
choose the closest answer.
A.
26.47%
B.
42.05%
C.
18.75%
D.
33.33%
2. Putnam Company
Below is an income statement for Putnam
Company:
Sales
$600,000
Variable costs
(192,000)
Contribution margin
$408,000
Fixed costs
(300,000)
Profit...
Gilley Inc. sells a single product. Gilley's most recent income
statement is given below:
Sales (Sold...
Gilley Inc. sells a single product. Gilley's most recent income
statement is given below:
Sales (Sold 4,000 units) $120,000
Variable costs: Variable manufacturing costs (48,000) Variable
selling and general costs (20,000) Contribution margin 52,000 Fixed
costs: Fixed manufacturing costs (30,000) Fixed selling and general
costs (10,000) Operating income $12,000
How many units must be sold to achieve net income (after tax) of
$15,000? Assume income tax rate of 40%. Compute the new "break-even
point" in units if fixed manufacturing costs...
Baker Industries’ net income is $24,000, its interest expense is
$6,000, and its tax rate is...
Baker Industries’ net income is $24,000, its interest expense is
$6,000, and its tax rate is 40%. Its notes payable equals $27,000,
long-term debt equals $80,000, and common equity equals $245,000.
The firm finances with only debt and common equity, so it has no
preferred stock. What are the firm’s ROE and ROIC? Do not round
intermediate calculations. Round your answers to two decimal
places.
Problem 18-5A Mozena Corporation has collected the following
information after its first year of sales. Sales...
Problem 18-5A Mozena Corporation has collected the following
information after its first year of sales. Sales were $1,500,000 on
100,000 units; selling expenses $250,000 (40% variable and 60%
fixed); direct materials $511,000; direct labor $290,000;
administrative expenses $270,000 (20% variable and 80% fixed);
manufacturing overhead $350,000 (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...
Total
Store A
Store B
Sales
$1,000,000
$400,000
$600,000
Variable expenses
580,000
160,000
420,000
Contribution margin...
Total
Store A
Store B
Sales
$1,000,000
$400,000
$600,000
Variable expenses
580,000
160,000
420,000
Contribution margin
420,000
240,000
180,000
Traceable fixed expenses
300,000
100,000
200,000
Store segment margin
120,000
140,000
-20,000
Common fixed expenses
50,000
20,000
30,000
Net operating income
$70,000
$120,000
($50,000)
Due to its poor showing, consideration is being given to closing
Store B. Studies show that if Store B is closed, one-fourth of its
traceable fixed expenses will continue unchanged. The studies also
show that closing Store...
SIMPLE manufactures and sells a single product. The company’s
sales and expenses for last quarter follow:...
SIMPLE manufactures and sells a single product. The company’s
sales and expenses for last quarter follow: Total Per Unit Sales
$600,000 $40 Less: Variable Expenses $420,000 $28 Contribution
Margin $180,000 $12 Less: Fixed Expenses $146,520 Net Operating
Income $33,480 Required: What is the monthly break-even point in
units sold and in sales dollars? Without resorting to computations,
calculate the total contribution margin at the break-even point.
How many units would have to be sold each quarter to earn a target...
QUESTION 2
SPI-K manufactures and sells a single product. The company’s
sales and expenses for last...
QUESTION 2
SPI-K manufactures and sells a single product. The company’s
sales and expenses for last quarter follow:
Total
Per Unit
Sales
$600,000
$40
Less: Variable Expenses
$420,000
$28
Contribution Margin
$180,000
$12
Less: Fixed Expenses
$146,520
Net Operating Income
$33,480
Required:
What is the monthly break-even point in units sold and in sales
dollars?
Without resorting to computations, calculate the total
contribution margin at the break-even point.
How many units would have to be sold each quarter to earn...
Accounting Services, Inc. has two customers. Customer X
generates $600,000 in income after direct fixed costs...
Accounting Services, Inc. has two customers. Customer X
generates $600,000 in income after direct fixed costs are deducted,
and Customer Z generates $580,000 in income after direct fixed
costs are deducted. Allocated fixed costs total $1,000,000 and are
assigned 40 percent to Customer X and 60 percent to Customer Z.
Total allocated fixed costs remain the same regardless of how these
costs are assigned to customers.
What is the amount of allocated fixed costs to be
assigned to Customer Z?...
Coats R Us Inc., manufactures and sells men’s coats. Each coat
sells for $150 and the...
Coats R Us Inc., manufactures and sells men’s coats. Each coat
sells for $150 and the variable costs per coat is $80. The
company’s fixed costs are $1,400,000. The company has an income tax
rate of 50%.
Compute contribution margin, contribution margin percentage,
breakeven point in sales units, the revenues needed to
breakeven?
Coats R Us has a target monthly net income of $350,000. What is
its target monthly operating income? How many coats must be sold
each month to...