Kindle, Inc. manufactures cosmetic products that are sold
through a network of sales agents. The agents...
Kindle, Inc. manufactures cosmetic products that are sold
through a network of sales agents. The agents are paid a commission
of 12.5% of sales. The income statement for the year ending
December 31, 2019, is as follow.
KINDLE, INC.
Income Statement
Year Ending December 31, 2019
Sales
$130,000
Cost of goods sold
Variable
$58,500
Fixed
14,350
72,850
Gross margin
57,150
Selling and marketing expenses
Commissions
$16,250
Fixed costs
17,100
33,350
Operating income
$23,800
The company is considering hiring its own...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 21% of sales. The income statement for the year
ending December 31, 2017, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2017
Sales
$79,000,000
Cost of goods sold
Variable
$38,710,000
Fixed
8,750,000
47,460,000
Gross margin
$31,540,000
Selling and marketing expenses
Commissions
$16,590,000
Fixed costs
10,610,000
27,200,000
Operating income
$4,340,000
The company is...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 20% of sales. The income statement for the year
ending December 31, 2017, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2017
Sales
$77,300,000
Cost of goods sold
Variable
$37,877,000
Fixed
8,760,000
46,637,000
Gross
margin
$30,663,000
Selling and marketing
expenses
Commissions
$15,460,000
Fixed
costs
10,000,000
25,460,000
Operating income
$5,203,000
The company is...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 21% of sales. The income statement for the year
ending December 31, 2017, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2017
Sales
$70,800,000
Cost of goods sold
Variable
$33,276,000
Fixed
8,840,000
42,116,000
Gross margin
$28,684,000
Selling and marketing expenses
Commissions
$14,868,000
Fixed costs
10,570,000
25,438,000
Operating income
$3,246,000
The company is...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 18% of sales. The income statement for the year
ending December 31, 2020, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2020
Sales
$70,700,000
Cost of goods sold
Variable
$28,280,000
Fixed
8,810,000
37,090,000
Gross margin
$33,610,000
Selling and marketing expenses
Commissions
$12,726,000
Fixed costs
10,102,600
22,828,600
Operating income
$10,781,400
The company is...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The...
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 20% of sales. The income statement for the year
ending December 31, 2020, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2020
Sales
$76,400,000
Cost of goods sold
Variable
$32,852,000
Fixed
8,720,000
41,572,000
Gross margin
$34,828,000
Selling and marketing expenses
Commissions
$15,280,000
Fixed costs
10,360,900
25,640,900
Operating income
$9,187,100
The company is...
Marston Corporation manufactures disposable thermometers that
are sold to hospitals through a network of independent sales...
Marston Corporation manufactures disposable thermometers that
are sold to hospitals through a network of independent sales agents
located in the United States and Canada. These sales agents sell a
variety of products to hospitals in addition to Marston's
disposable thermometer. The sales agents are currently paid an 19%
commission on sales, and this commission rate was used when
Marston's management prepared the following budgeted absorption
income statement for the upcoming year.
Marston Corporation
Budgeted Income Statement
Sales
$
33,000,000
Cost...
Pittman Company is a small but growing manufacturer of
telecommunications equipment. The company has no sales...
Pittman Company is a small but growing manufacturer of
telecommunications equipment. The company has no sales force of its
own; rather, it relies completely on independent sales agents to
market its products. These agents are paid a sales commission of
19% for all items sold.
Barbara Cheney, Pittman’s controller, has just prepared the
company’s budgeted income statement for next year. The statement
follows:
Pittman Company
Budgeted Income Statement
For the Year Ended December 31
Sales
$
17,200,000
Manufacturing expenses:
Variable...
Waterways Continuing Problem 06 a (Part 3)
The section of Waterways that produces controllers for the...
Waterways Continuing Problem 06 a (Part 3)
The section of Waterways that produces controllers for the
company provided the following information.
Sales in units for month of February
4,100
Variable manufacturing cost per unit
$10.00
Sales price per unit
$46.00
Fixed manufacturing overhead cost (per month for
controllers)
$79,000
Variable selling and administrative expenses per unit
$3.80
Fixed selling and administrative expenses (per month for
controllers)
$14,310
Using this information for the controllers, determine the
contribution margin ratio, the degree...
Tanek Corp.’s sales slumped badly in 2017. For the first time in
its history, it operated...
Tanek Corp.’s sales slumped badly in 2017. For the first time in
its history, it operated at a loss. The company’s income statement
showed the following results from selling 515,500 units of product:
sales $2,577,500, total costs and expenses $2,680,600, and net loss
$103,100. Costs and expenses consisted of the amounts shown
below.
Total
Variable
Fixed
Cost of goods sold
$2,206,340
$1,639,290
$567,050
Selling expenses
257,750
94,852
162,898
Administrative expenses
216,510
70,108
146,402
$2,680,600
$1,804,250
$876,350
Management is considering the...