Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,650,000 Selling expenses-variable $73,000 Direct materials 520,000 Selling expenses-fixed 52,000 Direct labor 340,000 Administrative expenses-variable 27,000 Manufacturing overhead-variable 360,000 Administrative expenses-fixed 59,000 Manufacturing overhead-fixed 120,000

Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,650,000 Selling expenses-variable $73,000 Direct materials 520,000 Selling expenses-fixed 52,000 Direct labor 340,000 Administrative expenses-variable 27,000 Manufacturing overhead-variable 360,000 Administrative expenses-fixed 59,000 Manufacturing overhead-fixed 120,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...

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Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $ 2,000,000 Selling expenses-variable $ 109.000 Direct materials 550,000 Selling expenses-fixed 58.000 Direct labor 400,000 Administrative expenses-variable 21.000 Manufacturing overhead-variable 420.000 Administrative expenses-fixed 52,000 Manufacturing overhead-fixed 190,000 Prepare a CVP income statement for 2020 based on management's estimates. CARLA VISTA cOMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Sales 2000000 Variable Expenses Selling Expenses 52000 Administrative Expenses v 300000 Net Income/(Loss) $ 200000 eTextbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle 0.375
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers For the year 2022, management estimates the following revenues and costs. Sales $1.800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable· 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000 Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio
Assume that total sales revenue for 2018 is projected to be $1081764. Assume also the following costs for Shannon's Brewery: Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $150,000 $80,000 $42,000 $9,000 $240,000 $18,000 $31083 $26761 $18,000 $180,000 Compute Shannon's %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $2,000,000 Selling expenses—variable $109,000 Direct materials 550,000 Selling expenses—fixed 58,000 Direct labor 400,000 Administrative expenses—variable 21,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 52,000 Manufacturing overhead—fixed 190,000 Prepare a CVP income statement for 2020 based on management’s estimates. Calculate variable cost per bottle.
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000
Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)
Assume that projected revenue for 2018 is 1,255,160. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) Kegs Shrinkage/WIP $130,715 $65,801 Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon's projected contribution in dollars.
The following is Pacific Limited’s contribution format income statement for January 2022: Sales $1,400,000Variable expenses 700,000Contribution margin 700,000Fixed expenses 400,000Net operating income $ 300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think? b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point? c. What is the company’s margin of safety both in dollar and percentage terms? Explain the margin of safety of the company? d.
Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Using this information, answer the following questions: 1. What are the total sales required? Group of answer choices $2,142,857.14 3,500,500.15 4,256,360.07
Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)