Comfirm Marwick's Pianos, IncorporatedContribution Format Income StatementFor the Month of AugustSalesVariable expenses:Cost of goods soldSales salaries and commissionsDelivery of pianosClericalTotal variable expensesContribution marginFixed expenses:InsuranceExecutive salariesUtilitiesDepreciation of sales facilitiesAdvertisingDepreciation of office equipmentClericalTotal fixed expensesNet operating incomeTotal$ 165,200 $$$89,2676,6083,4812,242101,59863,602 $68313,4306645,0179528562,526Per Piano24,12834,7002,8001,51311259381,7221,078 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 $1,513 per unit and then sells them toretail customers for an average price of $2,800 each. The company's selling and administrative costs for a typical month are presentedbelow:CostsSelling:AdvertisingSales salaries and commissionsDelivery of pianos to customersUtilitiesDepreciation of sales facilities.Administrative:Cost Formula$952 per month$4,774 per month, plus 4% of sales$59 per piano sold$664 per month$5,017 per monthExecutive salaries.InsuranceClericalDepreciation of office equipmentDuring August, Marwick's Pianos, Incorporated, sold and delivered 59 pianos.Required:1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per-unit basis downthrough contribution margin.$13,430 per month$683 per month$2,526 per month, plus $38 per piano sold$856 per monthRequired 1 Required 2Complete this question by entering your answers in the tabs below.Prepare a traditional format income statement for August.Note: A "Net operating loss" should be entered as a negative number.

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Problem 1-21 (Algo) Traditional and…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 26BEA

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West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
ouTube Maps er 1 i 05 K ces Mc Graw MU Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retall customers for an average price of $2,600 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: 9°F ain showers Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Planos, Incorporated, sold and delivered 62 planos. Required 1 Required 2 Cost Formula Required: 1. Prepare a traditional format Income statement for August. 2. Prepare a contribution format Income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin. $933 per month $4,790…
PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even.
i Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required 1 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Required 2 Amount $ 1,012,000 $ 440 Complete this question by entering your answers in the tabs below. Required 3 $ 150,000 $ 130,000 $ 65,000 $ 100,000 $ 280,000 Selling and administrative expenses: $45 $18 Prepare a traditional income statement for the quarter ended…
ssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress=false E Calculator Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $722,000 in service revenue. Their total cost (fixed and variable) per client was $2,400 and they served 105 clients during the year. If operating expenses for the year were $302,000 what was their net income? Park and West, LLC Income Statement For Year Ending 2019 Previous Next Submit Test for Grading Email Instructor All work saved. 5:19 PM 10/2/2020
on 1 - Case X 9 tps://ezto.mheducation.com/ext/map/index.html?_con=con&external... A Case 1-23/FA MA X Q2. Part 2: Analyze Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) Fixed production costs Advertising expense Administrative salaries Total April May Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: Standard 2,000 8,000 Req 1A Sales, in units, over the past two months have been as follows: Deluxe 1,000 1,000 Saved Req 1B Per Month $ 124,000 104,000 54,000 $ 282,000 Req 3 X Prepare contribution format incom Standard $ 40.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution…
Jilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Next
Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 6,000 machine- hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. JCL Ltd., a potential customer, has offered to buy 10,000 tool boxes at $11.90 per box, provided that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials. Direct labour (½ hour at $10.40/hour) Total manufacturing overhead Total unit product cost $ 3.60 5.20 3.10 $11.90 Both fixed and variable overhead are allocated using direct labour-hours as a base. Variable overhead is $2.60 per direct labour-hour. Without the order, Anchor would have enough business to operate at 4,800 direct labour-hours in each of the next two months. The regular selling price of the tool boxes is $14.90. A sales commission of 50 cents per unit is paid to sales…
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…
yPLUS Davis, Managerlal Accounting, 3e Help | System Announcements CALCU RESOURCES Problem 3-39 (Part Level Submission) Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $434,000 per year. 29 35 (Part Ission) 39 (Part ission) XL-709 CD-918 Sales price $16.00 $31.00 Variable cost 12.00 23.00 36 (Part ission) Sales volume 86,800 units 130,200 units ts by Study v (a) How many units of each product must Crane Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 25,000.) XL-709 CD-918 Break even units Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Attempts: 0 of 5 usec > (b) The parts of this question must be completed in order. This part will be available when you complete the part above. >(c) The parts of this question must,be completed in order. This part will be available when you complete the part above. MAR 18
Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,462,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 295,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950

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