Whirly Corporation’s contribution format income statement for
the most recent month is shown below:
Total
Per...
Whirly Corporation’s contribution format income statement for
the most recent month is shown below:
Total
Per Unit
Sales (10,000
units)
$
350,000
$
35.00
Variable
expenses
200,000
20.00
Contribution
margin
150,000
$
15.00
Fixed
expenses
135,000
Net operating
income
$
15,000
Tomik Corp. has four operating divisions. The reported revenues
and expenses for the most recent year...
Tomik Corp. has four operating divisions. The reported revenues
and expenses for the most recent year are as follows:
Division:
East
South
Midwest
California
Sales
$504,000
$948,000
$960,000
$1,240,000
Variable
costs
440,000
930,000
765,000
925,000
Fixed
costs*
96,000
202,000
144,000
210,000
Op. Inc. (loss)
$(32,000)
$(184,000) $
51,000
$ 105,000
*Fixed costs for all divisions are 20% attributable and 80%
common fixed costs
15. What is the contribution margin for the California
division?
16. What...
Miller Company’s contribution format income statement for the
most recent month is shown below:
Total
Per...
Miller Company’s contribution format income statement for the
most recent month is shown below:
Total
Per Unit
Sales (35,000 units)
$
175,000
$
5.00
Variable expenses
70,000
2.00
Contribution margin
105,000
$
3.00
Fixed expenses
45,000
Net operating income
$
60,000
1. What is the revised net operating income if the selling price
increases by $1.20 per unit, fixed expenses increase by $9,000, and
the number of units sold decreases by 8%?
2. What is the revised net operating income...
Warrix Corporation has provided the following contribution
format income statement. Assume that the following information is...
Warrix Corporation has provided the following contribution
format income statement. Assume that the following information is
within the relevant range.
Sales (3,000 units)
$
150,000
Variable expenses
90,000
Contribution margin
60,000
Fixed expenses
55,000
Net operating income
$
5,000
Answer the follow questions.
If sales increase to 3,100 units, net operating income would be
closest to:
If sales increase to 3,100 units, the breakeven point in units
would (increase, decrease or stay the same)
If sales increase to 3,100 units,...
Engberg Company installs lawn sod in home yards. The company’s
most recent monthly contribution format income...
Engberg Company installs lawn sod in home yards. The company’s
most recent monthly contribution format income statement
follows:
Amount
Percent
of Sales
Sales
$
80,000
100%
Variable expenses
32,000
40%
Contribution margin
48,000
60%
Fixed expenses
38,000
Net operating income
$
10,000
Required:
1.
Compute the company’s degree of operating leverage.
(Round your answer to 1 decimal place.)
2.
Using the degree of operating leverage, estimate the impact on
net operating income of a...
If you have the following information for the company
XYZ financial report for the year ended...
If you have the following information for the company
XYZ financial report for the year ended 2019. What is the Net
Return on Assets Ratio (NRAR)?
Classifications
Amount in $
Returns and Allowances
2,366
Total Assets for the year ended 2018
50,000
Beginning Inventory
50,000
Total Assets for the year ended 2019
150,000
Purchases
100,000
Other Expenses
10,000
Total Operating Expenses
150,000
Ending Inventory
25,724
Gross Sales
350,642
Galley, Inc. manufactures two product lines, toasters and
blenders. Below is the most recent contribution margin...
Galley, Inc. manufactures two product lines, toasters and
blenders. Below is the most recent contribution margin segmented
income statement prepared by Galley’s accountant, who allocated
common fixed costs between the two segments based on sales
revenue.
Total Toasters Blenders
Sales $ 1,000,000 $ 450,000 $ 550,000
Variable costs 745,000 300,000 445,000
Contribution margin 255,000 150,000 105,000
Traceable fixed costs (80,000) (25,000) (55,000)
Segment margin $175,000 $125,000 $50,000
Common fixed costs (40,000) (18,000) (22,000)
Operating income (loss) $135,000 $107,000 $28,000...
XYZ Co. is evaluating whether to
invest in a project with the following information:
Project cost...
XYZ Co. is evaluating whether to
invest in a project with the following information:
Project cost = $950,000
Project life = five years
Projected number of units sold per
year = 10,000
Projected price per unit = $200
Projected variable cost per unit =
150
Fixed costs per year = $150,000
Required rate of return = 15%
Marginal tax rate = 35%
Assume straight-line depreciation to
zero over five years, and ignore the half-year rule for accounting
for depreciation.
Calculate...
Tunnel Incorporated provided the following information regarding
its single product:
Direct materials used
$220,000
Direct labor...
Tunnel Incorporated provided the following information regarding
its single product:
Direct materials used
$220,000
Direct labor incurred
$470,000
Variable manufacturing overhead
$150,000
Fixed manufacturing overhead
$100,000
Variable selling and administrative
expenses
$55,000
Fixed selling and administrative
expenses
$20,000
The regular selling price for the product is $80. The annual
quantity of units produced and sold is 44,000 units (the costs
above relate to the 44,000 units production level). The company has
excess capacity and regular sales will not be affected...