Moffett Company reports the following information for
March.
Net Sales Revenue
$78,950
Variable Cost of Goods...
Moffett Company reports the following information for
March.
Net Sales Revenue
$78,950
Variable Cost of Goods Sold
22,250
Fixed Cost of Goods Sold
9,300
Variable Selling and Administrative Costs
17,000
Fixed Selling and Administrative Costs
6,400
Requirement 1. Calculate the gross profit and operating income
for March using absorption costing.
Moffett Company
Income Statement (Absorption Costing)
For the Month Ended March 31
Operating Income
Requirement 2. Calculate the contribution margin and operating
income for March using variable costing.
Moffett...
1. Based on the following information, what is the total
cost?
Sales revenue
Variable cost
Fixed...
1. Based on the following information, what is the total
cost?
Sales revenue
Variable cost
Fixed cost
Total cost
Contribution margin
$115,000
?
$21,000
?
$22,000
a. 112,000 b.115,000 c.none of these options are correct
d.114,000
2. Rotide Inc. produces one type of product. Each unit requires
$770 in variable costs and $550 in fixed costs. Currently, the
breakeven point is 220 units. If Rotide Inc. produces one more
unit, how much will the 221st unit sold contribute to the...
The following information is available for year 1 for Pepper
Products:
Sales revenue (190,000 units)...
The following information is available for year 1 for Pepper
Products:
Sales revenue (190,000 units)
$
3,800,000
Manufacturing costs
Materials
$
224,000
Variable cash costs
190,000
Fixed cash costs
438,000
Depreciation (fixed)
1,336,000
Marketing and administrative costs
Marketing (variable, cash)
565,000
Marketing depreciation
201,000
Administrative (fixed, cash)
684,000
Administrative depreciation
100,000
Total costs
$
3,738,000
Operating profits
$
62,000
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales
Revenue
The controller of Ashton Company prepared the...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales
Revenue
The controller of Ashton Company prepared the following
projected income statement:
Sales
$88,000
Total Variable cost
64,240
Contribution
margin
$23,760
Total Fixed cost
9,180
Operating income
$14,580
Required:
1. Calculate the contribution margin
ratio.
%
2. Calculate the variable cost ratio.
%
3. Calculate the break-even sales revenue for
Ashton.
$
4. How could Ashton increase projected
operating income without increasing the total sales revenue?
Budgeted Income Statement and Balance Sheet
As a preliminary to requesting budget estimates of sales, costs,...
Budgeted Income Statement and Balance Sheet
As a preliminary to requesting budget estimates of sales, costs,
and expenses for the fiscal year beginning January 1, 20Y9, the
following tentative trial balance as of December 31, 20Y8, is
prepared by the Accounting Department of Regina Soap Co.:
Cash
$111,000
Accounts Receivable
196,500
Finished Goods
41,300
Work in Process
27,500
Materials
45,200
Prepaid Expenses
3,300
Plant and Equipment
576,100
Accumulated Depreciation—Plant and Equipment
$247,700
Accounts Payable
157,200
Common Stock, $10 par
350,000...
I. Garza and Neely CPAs, are preparing their
service revenue (sales) budget for the coming year...
I. Garza and Neely CPAs, are preparing their
service revenue (sales) budget for the coming year (2014). The
practice is divided into the three departments: auditing, tax, and
consulting. Billable hours for each department, by quarter, are
provided below.
Department
Quarter
1
Quarter
2
Quarter 3
Quarter 4
Auditing
2,300
1,600
2,000
2,400
Tax
3,000
2,200
2,000
2,500
Consulting
1,500
1,500
1,500
1,500
Average hourly billing rates are auditing $80, tax $90, and
consulting $100....
Book Division
Magazine Division
Total
Sales Revenue
$
7,820,000
$
3,320,000
$
11,140,000
Cost of Goods...
Book Division
Magazine Division
Total
Sales Revenue
$
7,820,000
$
3,320,000
$
11,140,000
Cost of Goods sold
Variable costs
2,005,000
1,003,000
3,008,000
Fixed costs
77,700
202,000
279,700
Gross Profit
$
5,737,300
$
2,115,000
$
7,852,300
Operating Expenses
Variable
137,000
200,000
337,000
Fixed
3,918,000
2,191,000
6,109,000
Net income
$
1,682,300
$
(276,000
)
$
1,406,300
The variable operating expenses are directly attributable to the
division. Of the total fixed costs (manufacturing and operating),
$4,002,000 are shared between the divisions, allocated $2,813,000...
The following information is available for year 1 for Dancer
Components:
Sales revenue (220,000 units)
$...
The following information is available for year 1 for Dancer
Components:
Sales revenue (220,000 units)
$
6,160,000
Manufacturing cost
Materials
$
363,000
Variable cash cost
308,000
Fixed cash cost
708,000
Depreciation (fixed)
2,159,000
Marketing and administrative costs
Marketing (variable, cash)
913,000
Marketing depreciation
323,000
Administrative (fixed, cash)
1,099,000
Administrative depreciation
161,000
Total costs
$
6,034,000
Operating profit
$
126,000
Variable marketing costs to change with unit volume.
Administrative cash cost is expected to increase by 3 percent.
Inventories will be...