Leonard and Michelle have asked you to prepare their statement
of changes in net worth for...
Leonard and Michelle have asked you to prepare their statement
of changes in net worth for the year ended August 31, 20X3. They
have prepared the following comparative statement of financial
condition based on estimated current values as required by ASC 274:
LEONARD AND MICHELLE Statement of Financial Condition August 31,
20X3 and 20X2 20X3 20X2 Assets Cash $ 4,300 $ 7,400 Marketable
securities 5,600 17,700 Residence 96,200 88,900 Personal effects
10,700 10,700 Cash surrender value of life insurance 3,900...
Sales
$60,000
Less: Variable Expenses
45,000
Contribution Margin
15,000
Less: Fixed Expenses
18,000
Net Income
-$3,000...
Sales
$60,000
Less: Variable Expenses
45,000
Contribution Margin
15,000
Less: Fixed Expenses
18,000
Net Income
-$3,000
a. What are the total sales in dollars at the break-even
point?
b. What are the total variable expenses at the break-even
point?
c. What is the company's contribution margin ratio?
d. If unit sales were increased by 10% and fixed expenses were
reduced by $2,000, what would be the company's expected net income?
(Prepare a new income statement.)
Why is “net operating income” on the functional format income
statement the same as “net operating...
Why is “net operating income” on the functional format income
statement the same as “net operating income” on the contribution
format income statement.
Gross Margin
8,603,560
46.76%
10,530,320
49.30%
11,772,882
48.27%
30,762,309
100.00%
less: Marketing Expenses (Sch 7)
5,358,000
29.12%
6,194,000
29.00%
7,010,000
28.74%
8,781,000
28.54%
less: G & A Expense (Sch 8)
1,845,000
10.03%
2,004,000
9.38%
2,202,000
9.03%
0
0.00%
Net Operating
Income
1,400,560
7.61%
2,332,320
10.92%
2,560,882
10.50%
21,981,309
71.46%
Contribution Margin
9,106,560
49.57%
10,686,320
50.10%
11,345,882...
Variable Costing Income Statement
The following data were adapted from a recent income statement
of The...
Variable Costing Income Statement
The following data were adapted from a recent income statement
of The Bluth Company:
(in millions)
Sales
$193,810
Operating costs:
Cost of products sold
$(93,030)
Marketing, administrative, and other expenses
(62,020)
Total operating costs
$(155,050)
Operating income
$38,760
Assume that the variable amount of each category of operating
costs is as follows:
(in millions)
Cost of products sold
$52,330
Marketing, administrative, and other expenses
25,200
a. Based on the data given, prepare a variable
costing income...