Question

Question 1. Consider the following data from Henderson Company’s budgeted income statement (in thousands of dollars):...

Question 1.

Consider the following data from Henderson Company’s budgeted income statement (in thousands of dollars):

Target sales

Variable costs

       Manufacturing

       Selling and administrative

       Total variable costs

Fixed costs

     Manufacturing

       Selling and administrative

Total fixed costs

Total of all costs

Operating income

$96,750

32,250

6,450

38,700

8,600

6,450

15,050

53,750

$43,000

Compute the following markup percentages that would be used for obtaining the same target sales as a percentage of:

  1. Total variable costs,
  2. Full costs, and
  3. Variable manufacturing costs

Homework Answers

Answer #1

Hope it helps.. In case of any doubts or issues, please do comment below

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for:...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for: 43,200 Units Variable costs Fixed costs Manufacturing 734,400 172,800 Selling and Administrative 216,000 60,500 Total 950,400 233,300 USB Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material $6 Direct labor 8 Variable Manufacturing Overhead 3 Fixed Manufacturing Overhead -allocated per unit 4 Total manufacturing costs...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for:...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for: 43,200 Units Variable costs Fixed costs Manufacturing 734,400 172,800 Selling and Administrative 216,000 60,500 Total 950,400 233,300 USB Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material $6 Direct labor 8 Variable Manufacturing Overhead 3 Fixed Manufacturing Overhead -allocated per unit 4 Total manufacturing costs...
The following data (in thousands of dollars) have been taken from the accounting records of TCorp...
The following data (in thousands of dollars) have been taken from the accounting records of TCorp for the just completed year: Administrative expenses $ 600 Direct labor 800 Finished goods inventory, beginning 480 Finished goods inventory, ending 640 Manufacturing overhead 920 Purchases of raw materials 480 Raw materials inventory, beginning 160 Raw materials inventory, ending 280 Sales 3,960 Selling expenses 560 Work in process inventory, beginning 280 Work in process inventory, ending 200 Answer the two questions below. 1) What...
Absorption Costing Income Statement On October 31, the end of the first month of operations, Maryville...
Absorption Costing Income Statement On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (8,600 units) $361,200 Variable cost of goods sold: Variable cost of goods manufactured $175,100 Inventory, October 31 (1,700 units) (28,900) Total variable cost of goods sold (146,200) Manufacturing margin $215,000 Variable selling and administrative expenses (94,600) Contribution...
Which of the following is the income statement formula for the variable costing method? Sales Revenue...
Which of the following is the income statement formula for the variable costing method? Sales Revenue - All Variable Costs = Contribution Margin - All Fixed Expenses = Operating Income Sales Revenue - Cost of Goods Sold = Gross Margin - All Fixed Expenses = Operating Income Sales Revenue - Variable Manufacturing Costs = Contribution Margin - Fixed Manufacturing Costs = Operating Income Sales Revenue - Cost of Goods Sold = Gross Margin - Selling and Administrative Expenses = Operating...
Question 2 : Sharqiya Company estimates sales of 15,000 units for the upcoming period. At this...
Question 2 : Sharqiya Company estimates sales of 15,000 units for the upcoming period. At this sales volume its budgeted income is as follows:     Per Unit      Total Sales   $   60         $   900,000      Less variable costs:                        Manufacturing costs      30            450,000      Selling and administrative costs      10            150,000      Contribution margin   $   20         $   300,000      Less fixed costs:     ...
Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford...
Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (2,900 units) $81,200 Cost of goods sold: Cost of goods manufactured (3,400 units) $68,000 Inventory, November 30 (500 units) (10,000) Total cost of goods sold 58,000 Gross profit $23,200 Selling and administrative expenses 13,820 Income from operations $9,380 Assume...
1: An income statement for Sam's Bookstore for the first quarter of the year is presented...
1: An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 840,000 Cost of goods sold 545,000 Gross margin 295,000 Selling and administrative expenses Selling $ 116,000 Administrative 136,000 252,000 Net operating income $ 43,000 On average, a book sells for $60. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: Sales revenue (320 units @ $720 per unit) $ 230,400 Less Manufacturing costs Variable costs 28,000 Depreciation (fixed) 26,200 Marketing and administrative costs Fixed costs (cash) 66,800 Depreciation (fixed) 24,700 Total costs $ 145,700 Operating profits $ 84,700 Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 5 percent. Variable manufacturing costs are...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for...
Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October: Sales revenue (480 units @ $660 per unit) $ 316,800 Less Manufacturing costs Variable costs 23,000 Depreciation (fixed) 27,400 Marketing and administrative costs Fixed costs (cash) 66,400 Depreciation (fixed) 23,700 Total costs $ 140,500 Operating profits $ 176,300 Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are...