Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 89,600 units of product: net sales $2,240,000; total costs and expenses $2,503,200; and net loss $263,200. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. Total $1,756,160 3. 579,040 Variable $1,176,000 $580,160 476,000 103,040 $2,503,200 $1,344,000 $1,159,200 168,000. Management is considering the following independent alternatives for 2022, Fixed 103,040 64,960 Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $224,000 to total salaries of $44,800 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50-50
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- Ivanhoe Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 86,400 units of product: net sales $2,160,000; total costs and expenses $2,413,800; and net loss $253,800. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. 3. Break-even point $ 1. Total $1,693,440 558,360 162,000 Management is considering the following independent alternatives for 2022. Increase selling price 2. Change compensation $2,413,800 $1,296,000 3. Purchase machinery Variable Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $216,000 to total salaries of $43,200 plus a 5% commission on net sales. $1,134,000 99,360 62,640 Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a)…Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,780,200; and net loss $280,200. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,106,000 $598,000 $508,000 Selling expenses 522,200 95,000 427,200 Administrative expenses 152,000 57,000 95,000 $1,780,200 $750,000 $1,030,200 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. 3. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,010 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019.…Sheridan Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 73,600 units of product: net sales $1,840,000; total costs and expenses $2,056,200; and net loss $216,200, Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. 3. Break-even point 1. 2. $1,442,560 3. Total $ 475,640 Management is considering the following independent alternatives for 2022. 138,000 $2,056,200 Increase selling price Change compensation Purchase machinery (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O decimal places, e.g. 2,510.) Variable Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $184,000 to total salaries of $36,800 plus a 5% commission on net…
- esc Wildhorse Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 104,000 units of product: net sales $2,600,000; total costs and expenses $2,905,500; and net loss $305,500. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. 3. Break-even point $ 1. 2. $2,038,400 Total 672,100 195,000 $2,905,500 Management is considering the following independent alternatives for 2022. 3. Purchase machinery 1 F1 Increase selling price $ Change compensation $ 72 Variable $1,365,000 Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $260,000 to total salaries of $52,000 plus a 5% commission on net sales. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer…Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,800,000; and net loss $240,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,141,200 $633,000 $508,200 Selling expenses 512,800 91,000 421,800 Administrative expenses 146,000 56,000 90,000 $1,800,000 $780,000 $1,020,000 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $204,000 to total salaries of $44,985 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold…Midlands Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 80,000 units of product: net sales $2,000,000; total costs and expenses $2,235,000; and net loss $235,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,568,000 $1,050,000 $518,000 Selling expenses 517,000 92,000 425,000 Administrative expenses 150,000 58,000 92,000 $2,235,000 $1,200,000 $1,035,000 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50
- Spike Industries had a bad year in 2021, experiencing an operating loss for the first time. The company experienced sales of $2,220,000 from selling 185,000 units. The cost data can be found below: Variable Fixed S = 2.220,000 625 2,358,750 195,000 Su = $2,220,000 -112 185,000 Cost of goods sold Selling expenses VC₁ = $1,332,000 Administrative expenses 185,000 7.2 Total $1,486,000 681,000 305,000 $2,268,000 еми $866,000 356,000 110,000 $1,332,000 For 2022, management is considering changing the compensation of the sales force from fixed annual 2,75 salaries (totaling $170,006) to total salaries of $50,000 plus a 6.25% commission on sales. - $416,000 325,000 195,000 $936,000 Round to two decimal places when needed. Requirement 1: If management adopts this change, what will be the company's new break-even point in units? Is this an increase or a decrease from their previous break-even point? BE u = FC $936,000 A95,000 (12-7.2 New BEU TC -($936,000 - 120,006) $815,994 - 201,480 сти $4.05…Blossom Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,984,880, and net loss $107,380. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,455,420 $1,887,640 $567,780 Selling expenses 287,750 105,892 181,858 Administrative expenses 241,710 78,268 163,442 $2,984,880 $2,071,800 $913,080 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $172,650 to total salaries of $69,060 plus a 4% commission on sales. Compute the break-even point in dollars for 2020. Break-even point $…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 505,500 units of product: sales $2,527,500, total costs and expenses $2,611,875, and net loss $84,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,146,815 $1,733,865 $412,950 Selling expenses 252,750 93,012 159,738 Administrative expenses 212,310 68,748 143,562 $2,611,875 $1,895,625 $716,250 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $151,650 to total salaries of $60,660 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places,…
- Current Attempt in Progress Midlands Inc, had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77.000 units of product net sales $1.540,000: total costs and expenses $1.794.800; and net loss $254,800. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses 1 2. Total 3. $1.112.800 529,000 Variable $618,000 92,000 153,000 60,000 $1,794,800 $770,000 Fixed $494,800 437,000 92.000 Management is considering the following independent alternatives for 2020, Increase unit selling price 25% with no change in costs and experises. Change the compensation of salespersons from foed annual salaries totaling $201,000 to total salaries of $36,015 plus a 5% commission on net sales $1,024,800 Purchase new high-tech factory machinery that will change the proportion between variable and foxed cost of goods sold to 50:50. (a) Compute the break-even point in…Sage Hill Corporation had sales of $3,360,000 for the year ended December 31, 2022. The unit selling price was $12. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $832,000 $760,000 Selling expenses 113,000 64,000 Administrative expenses 231,000 71,000 Your answer is partially correct. Prepare a GAAP income statement. SAGE HILL CORPORATION GAAP Income Statement For the Year Ended December 31, 2022 Sales 3,360,000 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses $ Administrative Expenses Total Operating Expenses Net Income/(LosS) $The gross profit margin excludes all costs except the cost of goods sold. If Miller Company recorded Net Sales of $17,260 for the month of March 2021, and cost of goods sold of $11,042, what is the company’s gross profit margin for the month of March. 37.4% 36% 39.2% 38.6%