Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sale margin ratios for the two products follow: Sales CM ratio. Product Flight Dynamic $ 720,000 68% Sure Shot $ 280,000 79% Total $ 1,000,000
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![Exercise 5-12 (Algo) Multiproduct Break-Even Analysis [LO5-9]
Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution
margin ratios for the two products follow
Sales
CM ratio.
Product
Flight Dynamic
$ 720,000
68%
Fixed expenses total $588,000 per month.
Sure Shot
$ 280,000
79%
Total
$1,000,000
Required:
1. Prepare a contribution format income statement for the company as a whole.
2. What is the company's break-even point in dollar sales based on the current sales mix?
3. If sales increase by $52,000 a month, by how much would you expect the monthly net operating income to increase?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa880cc3d-71b2-44bc-9eb8-ccb18aa2c0ed%2F5f40d5eb-5410-40ad-af21-c7459b52677c%2Fvx88swk_processed.jpeg&w=3840&q=75)
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- Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sales CM ratio $ 740,000 Sure Shot $260,000 Total $1,000,000 63% 77% ? Fixed expenses total $587,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $59,000 a month, by how much would you expect the monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the company as a whole. (Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Flight Dynamic mount Sure Shot % Amount % Total Company Amount %Exercise 6-12 (Algo) Multiproduct Break-Even Analysis [LO6-9] Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Product Flight Dynamic Sales CM ratio $ 660,000 Sure Shot $340,000 68% 76% Total $1,000,000 ? Fixed expenses total $567,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $57,000 a month, by how much would you expect the monthly net operating income to increase?Bw J KVHZUM123 Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format Income statement follows: Sales Varlable expenses Contribution Margin Fixed Expenses Net operating Income (loss) (ID#79893) (Baruch College - No assistance allowed.) Multiple Choice Total O O Candy $4,200,000 $3,000,000 $1,200,000 2,000,000 1,500,000 500,000 2,200,000 1,500,000 700,000 2,200,000 1,300,000 900,000 (200,000) 200,000 Q) If the Candy Department is dropped, what will be the effect on the net operating Income of the KVHZUM123 Corporation as a whole? O A KVHZUM123's study indicates that $200,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 20% decrease in the sales of the Toys Department. Decrease by $260,000 0 Increase by $340,000 Department Toys Decrease by $340,000 Decrease by…
- Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,508 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Cost Formula $937 per month $4,819 per month, plus 3% of sales $62 per piano sold $638 per month $5,010 per month $13,471 per month $682 per month $2,465 per month, plus $36 per piano sold $944 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 58 pianos. Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs…Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost infor relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $11.00 $ 3.00 $ 130,000 Greengrow $39.00 $ 13.00 $ 40,000 Last year the company produced and sold 41,000 units of Weedban and 22,000 units of Greengrow. Its annual common fix expenses are $114,000. Required: Prepare a contribution format income statement segmented by product lines. $ Total Company 0 Product Line Weedban 0 $ 0 Greengrow 0 $ 0 0esc Par for the Course produces and sells 2,000 sets of golf clubs. Selling price per unit Variable cost per unit Annual fixed cost What is the company's contribution margin per unit? (Round to the nearest cent.) Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 1 Q A 7 2 W S # 3 X E D $ 4 R % 5 F MacBook Pro T A 6 G $3,000 $1,000 $500,000 C V & Y 7 B H * 00 8 U J N 9 K
- Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 11.00 $ 2.30 $ 135,000 Greengrow $30.00 $ 12.00 $ 38,000 Last year the company produced and sold 41,500 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $112,000. $ Required: Prepare a contribution format income statement segmented by product lines. Total Company 0 0 0 Product Line Weedban $ 0 Greengrow 0 $ 0Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 35.00 Variable expenses per unit $ 3.10 $ 11.00 Traceable fixed expenses per year $ 135,000 $ 48,000 Last year the company produced and sold 38,500 units of Weedban and 25,000 units of Greengrow. Its annual common fixed expenses are $103,000. Required: Prepare a contribution format income statement segmented by product lines.ces Exercise 2-17 (Algo) Break-Even and Target Profit Analysis [LO2-4, LO2-5, LO2-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $162,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have…
- Exercise 7-4 (Algo) Basic Segmented Income Statement [LO7-4] Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Greengrow Weedban $ 10.00 $ 37.00 $ 2.70 $ 137,000 $ 13.00 $ 38,000 Last year the company produced and sold 43,500 units of Weedban and 22,500 units of Greengrow. Its annual common fixed expenses are $96,000. Required: Prepare a contribution format income statement segmented by product lines. Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Product Line Total Company Weedban Greengrow 0 0 0 0 $ 0 $ 0 $ 0e 1:19 I %AV h.E O pm.pdf > A) Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2003 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs 160,000 Fixed costs 50,000 1. How many sets of clubs must be sold for Tee Times, Inc., to reach their breakeven point? a. 400 b. 250 с. 200 d. 150 2. How many sets of clubs must be sold to earn a target operating income of $90,000? a. 700 b. 500 c. 400 d. 300 3. What amount of sales must Tee Times, Inc., have to earn a target net income of $63,000 if they have a tax rate of 30%? a. $489,000 b. $429,000 c. $420,000 d. $300,000 B) The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following arrangements with the band will be in the best interest of the fraternity? a. $2500…Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
