Question 5 Cawley Company makes three models of tasers. Information on the three products is given as follows. Tingler Shocker Stunner Sales revenue $300,000 $500,000 $200,000 Variable expenses 150,000 200,000 145,000 Contribution $150,000 $300,000 $ 55,000 margin Fixed expenses 120,000 230,000 95,000 Net income $ 30,000 $ 70,000 $(40,000) Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Tingler), $80,000 (Shocker) and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The additional fixed expenses would be eliminated if a model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Instructions (a) Compute current net income for Cawley Company. (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (c) Should Cawley eliminate the Stunner product line? Explain.

Question 5 Cawley Company makes three models of tasers. Information on the three products is given as follows. Tingler Shocker Stunner Sales revenue $300,000 $500,000 $200,000 Variable expenses 150,000 200,000 145,000 Contribution $150,000 $300,000 $ 55,000 margin Fixed expenses 120,000 230,000 95,000 Net income $ 30,000 $ 70,000 $(40,000) Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $30,000 (Tingler), $80,000 (Shocker) and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The additional fixed expenses would be eliminated if a model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Instructions (a) Compute current net income for Cawley Company. (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (c) Should Cawley eliminate the Stunner product line? Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
MANUFACTORING Investigate % A packaging employee making $18 per hour can package 90 items during that hour. The direct material cost is $1.20 per item. What is the total direct cost of 1 item? A. $1.20 C. $1.40 o' F5 ^ F6 & F7 S F8 B. $0.20 a D. $1.00 DELL F9 I= ACC prtsc F10 home F11 end F12
BKARI013 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 1 During the year 2020, Akasia Maju Bhd (AMB) purchased a piece of land with an existing building for RM1,125,000. The land was valued at RM1,050,000 and the building at RM75,000. AMB demolished the building and constructed a new building as headquarters on the site. The new building and land improvement are expected to last for 80 years with no residual value and the construction was fully completed by the end of the year 2020. The following represents the various items related to the project in year 2020: Items RM Lawyer's fee to close the purchase deal 22,500 Cost of land fill and clearing 18,000 Architect's fee 120,000 Fencing around the land 60,000 Cost of demolishing existing building 97,500 Interest on financing of construction paid during construction 282,000 Receipts from sale of demolition scraps 15,000 Construction costs 1,200,000 Landscaping (trees and shrubs) 30,000 Parking lots and concrete walks on the property…
Maps Translate C Access to this pag... 9 studymoose.com ایجي بست مشاهدة ا. . . ۲a 1 sp 2022 i Saved Help Save Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unit product cost for this bracelet is $270.00 as shown below: Direct materials $ 145 Direct labor 87 Manufacturing overhead 38 Unit product cost $ 270 The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $12. Imperial Jewelers would also have to buy a special tool for $462 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected…
gageNOWv2 | Online teachin x zakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator%3&inprogress3false Equipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is acquired for $14,472 in cash and a note payable of $21,295 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is Oa. $35,767 Ob. $44,361 Oc. $29,889 Od. $14,472 Next Previous 3:37 AM 5/9/2022
+ I/ MI * 00 HI ( (O 因 %#3 Chapter 11 & 13 Review G Saved Help Save & Exit Subr Palace Company has two service departments and two user departments. The number of employees in each department is: Personnel Cafeteria 25 Producing Department A Producing Department B 067 255 580 The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280 during a given period, the amount of cost allocated to the Cafeteria under the step method would be: Multiple Choice 10:25 P nere to search 4/26/202 PrtSc Delete F8 F10 F11 F12 Ins +D 65 区 F5 F4 & %23 5. 80 4. D G Alt Ctrl Alt
Unauthorized My Home CengageNOWv2| Online teachin x + -> https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres. Chapter 20 еВook Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs (750,000) (1,250,000) Contribution margin $500,000 $750,000 Fixed costs (400,000) (450,000) Operating income $100,000 $300,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would operating income increase for each company if the sales of each increased by 20%? Dollars Percentage Beck Inc. % Bryant Inc. % c. The difference in the increases of operating income is due to the difference in the operating leverages. Beck Inc.'s higher operating leverage means that its fixed costs are a larger percentage of contribution margin than are Bryant Inc.'s. Feedback 6:43 PM…
5 ! Part 5 of 15 0.4 points eBook Print References Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,400,000 680,000 720,000 440,000 $ 280,000 $875,000 At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 480,000 Contribution margin ratio Fixed expenses 80 % of sales $ 336,000 The company's minimum required rate of return is 15%. 5. What is the turnover related to this year's investment opportunity? Note: Round your answer to 1 decimal place. Turnover
H+ اضغط للعودة إلى الاجتماع 01:04:40 Moodle -> 54_BAAC 2101_Cost Accounting 1_S2 / äsle P Flag question Following data is given; Direct Expenses OMR10,000 Direct wages OMR 30,000 Direct materials OMR 10,000 Indirect wages are 50% of direct wages, indirect materials are 50% of direct materials and indirect expenses are 100% of direct expenses. Compute the Works Cost from the above data. a. 80,000 O b. 130,000 O c. 65,000 O d. 50,000
Required information [The following information applies to the questions displayed below.] Use the following information: P1 P2 Department Service 1 (51) Service 2 (S2) Production 1 (P1) Production 2 (P2) Total Service Department 1's Costs Cost $ 130,000 62,000 525,000 396,000 $ 1,113,000 1/3 1/3 Percentage Service Provided to S1 0% 20 52 25% 0 What percentage of S1's costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction P1 30% 20 P2 45% 60
Courses Mastering Chernie X 2MateryCheme X loud/modules/unproctoredTest.QuestionSheet McCraith-Sectic x Updte Help Caroline Achienge S01243611acadceduLogout all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises Gradebook. Extemat kercises Remaining Time Unimted Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are taxed at a rate of 27%, then how much will you have when you retire? Round all answers to 2 decimal places. Before taxes retirement amount $ Number After taxes retirement amount $ Number Submit Assignment Quit & Save Васк Question Menu 4 Next 38°F Partly sunny A 0) 411 PM 11/19/202 end home delete prt sc 144 4+ 4- 40 num lock backspace & 8. 6. 7. home |近

Question 5 (Marks: 30)Consider the info provided below as well as the financial statements and answer the questionsthat follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glasswine bottles for the Blue Valley Beer Co. 2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 00018; 19; 20 2020© The Independent Institute of Education (Pty) Ltd 2020Page 11 of 12Q.5.1Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020. (7)Q.5.1.2 Compare the results of the 2019 and 2020 break‐even point and explainwhy there might be a difference.(3)Q.5.2 The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business.…