Calculate 2018 and 2019 ROMI:
2018 ($)
2019
2020
Revenue
$9,000,000
$10,000,000
$10,000,000
Variable Costs
Raw...
Calculate 2018 and 2019 ROMI:
2018 ($)
2019
2020
Revenue
$9,000,000
$10,000,000
$10,000,000
Variable Costs
Raw materials
$4,000,000
$5,000,000
$5,000,000
Production
$700,000
$700,000
$800,000
Distribution
$958,500
$1,006,425
$1,048,000
Gross profit
$3,341,500
$3,293,575
$3,152,000
Fixed Costs
Wages
$800,000
$800,000
$900,000
Marketing
$1,500,000
$1,300,000
$1,600,000
G&A
$200,000
$20,000
$200,000
Operating Profit
$841,500
$1,173,575
$452,000
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019,...
Rate of Change Analyses
Teicher Company presents the following condensed comparative
income statements for 2020, 2019, and 2018:
For Years Ended December 31,
2020
2019
2018
Sales (net)
$120,000
$100,000
$85,000
Cost of goods sold
(72,000)
(55,000)
(45,000)
Gross profit
$48,000
$45,000
$40,000
Operating expenses
(22,000)
(20,000)
(18,000)
Operating income
$26,000
$25,000
$22,000
Other items:
Dividend revenue
400
500
200
Interest expense
(1,200)
(1,000)
(500)
Income before income taxes
$25,200
$24,500
$21,700
Income tax expense
(8,200)
(8,000)
(6,000)
Net income...
The following information is available for 2018 for XYZ
Products:
Revenue (300,000
units) &n
The following information is available for 2018 for XYZ
Products:
Revenue (300,000
units)
$2,400,000
Manufacturing
costs:
Materials
400,000
Variable overhead cash
costs
270,000
Fixed overhead cash
costs
150,000
Depreciation
500,000
Marketing and administrative
costs:
Marketing variable
costs
300,000
Marketing
depreciation
50,000
Administrative cash
costs
200,000
Administrative
depreciation
30,000
Total
costs
$1,900,000
Operating
profits
$ 500,000...
Question 2
Peregrine Inc’s income statement in the contribution format for
2018 showed the following:
&n
Question 2
Peregrine Inc’s income statement in the contribution format for
2018 showed the following:
$
Revenue
8,000
Variable
costs 2,000
Contribution margin
6,000
Fixed
costs 2,000
Operating
income
4,000
Required
1)Calculate the contribution margin percentage.
2)Calculate the breakeven point in $ revenue.
3)Calculate the operating leverage.
4)Using the operating leverage formula, calculate the new
operating income if sales rise by 50%.
5)How much $ revenue is needed in order to generate a net income
of $5,000 if the company...