Q5 Contribution margin ratio60%70%Required:1. Prepare Income statement for the company.2. Calculate break-even point in dollars.Q5- Amber Manufacturing provided the following information for lastmonth:SalesVariable costsFixed costs$20,0006,0009,000Operating income $5,000If sales double next month, what is the projected operating income?Q6- Benjamin Company has the following data:Budgeted Sales$108,000132,000144,000120,000MonthJanuaryFebruaryMarchAprilCost of goods sold average 60% of sales. The inventory at December 31was $19,440. Desired ending inventory levels are 20% of next month'ssales at cost. What is the desired ending inventory value at February28?Q7- Downstairs Company has the following sales budget for the lastsix months of 2010:JulyAugustSeptemberOctober$100,00080,000110,00080,000100,00094,000NovemberDecember

“Since you have asked multiple question, we will solve the first question for you. If you want any…

Q5- Amber Manufacturing provided the following information for last month: $20,000 6,000 9,000 Operating income $5,000 Sales Variable costs Fixed costs If sales double next month, what is the projected operating income?

Q5- Amber Manufacturing provided the following information for last month: $20,000 6,000 9,000 Operating income $5,000 Sales Variable costs Fixed costs If sales double next month, what is the projected operating income?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13PB: Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows:...

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Question

Contribution margin ratio
60%
70%
Required:
1. Prepare Income statement for the company.
2. Calculate break-even point in dollars.
Q5- Amber Manufacturing provided the following information for last
month:
Sales
Variable costs
Fixed costs
$20,000
6,000
9,000
Operating income $5,000
If sales double next month, what is the projected operating income?
Q6- Benjamin Company has the following data:
Budgeted Sales
$108,000
132,000
144,000
120,000
Month
January
February
March
April
Cost of goods sold average 60% of sales. The inventory at December 31
was $19,440. Desired ending inventory levels are 20% of next month's
sales at cost. What is the desired ending inventory value at February
28?
Q7- Downstairs Company has the following sales budget for the last
six months of 2010:
July
August
September
October
$100,000
80,000
110,000
80,000
100,000
94,000
November
December

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