FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Alignment
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Numbe
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MVP, Inc.
Income Statement
For the Year Ended December 31, 2021
Sales
$ 375,000
Cost of Goods Sold:
Direct Materials (variable)
100,000
• Direct Labor (variable)
19,600
Manufacturing Overhead ($40,000 is fixed)
89,500
3
Cost of Goods Sold
209,100
-4
Gross Profit
165,900 D8-D13
15
Operating Expenses:
16
Sales Commissions (variable)
12,500
17
Shipping (variable)
2,500
Advertising (fixed)
Billing (of which $10,000 is fixed)
Sales and Administrative Salaries (fixed)
18
9,800
19
10,250
20
99,900
21
Total Operating Expenses
Operating Income (Loss)
134,950
22
30,950 =D14-D21
23
24 Additional information:
25
Sales Price per unit:
$15.00
26
Plant capacity (relevant range) is 60,000 units per year
27
All variable expenses in the company vary in terms of units sold
There was no change in inventory levels between the beginning and end of the year
28
29
30 B. Using the information above, calculate the missing amounts below:
31
a. Units of product MVP sold in 2021:
n/a
32
Variable cost per unit for the following mixed costs:
33
b. Variable Manufacturing Overhead per unit:
n/a
34
c. Variable Billing per unit:
n/a
35
Instructions
A M5 Project
+
Ready
Page 1 of 1
57 words
VWlal Tiappens to The brean-even POINI IIT UIMS
Samanth...ivio.xls
...022.docx
Which of the following statements is true if the
variable cost per unit and total fixed cost remai
When total fixed costs decrease the breakeven
Solivio
Screen Shot
2022-02...7.26 PM
Samantha_O
Transcript.pdf
М13А1
TMO 807
expand button
Transcribed Image Text:В I Uv 田 av A v Alignment Paste Numbe 23 fx A B C. D E MVP, Inc. Income Statement For the Year Ended December 31, 2021 Sales $ 375,000 Cost of Goods Sold: Direct Materials (variable) 100,000 • Direct Labor (variable) 19,600 Manufacturing Overhead ($40,000 is fixed) 89,500 3 Cost of Goods Sold 209,100 -4 Gross Profit 165,900 D8-D13 15 Operating Expenses: 16 Sales Commissions (variable) 12,500 17 Shipping (variable) 2,500 Advertising (fixed) Billing (of which $10,000 is fixed) Sales and Administrative Salaries (fixed) 18 9,800 19 10,250 20 99,900 21 Total Operating Expenses Operating Income (Loss) 134,950 22 30,950 =D14-D21 23 24 Additional information: 25 Sales Price per unit: $15.00 26 Plant capacity (relevant range) is 60,000 units per year 27 All variable expenses in the company vary in terms of units sold There was no change in inventory levels between the beginning and end of the year 28 29 30 B. Using the information above, calculate the missing amounts below: 31 a. Units of product MVP sold in 2021: n/a 32 Variable cost per unit for the following mixed costs: 33 b. Variable Manufacturing Overhead per unit: n/a 34 c. Variable Billing per unit: n/a 35 Instructions A M5 Project + Ready Page 1 of 1 57 words VWlal Tiappens to The brean-even POINI IIT UIMS Samanth...ivio.xls ...022.docx Which of the following statements is true if the variable cost per unit and total fixed cost remai When total fixed costs decrease the breakeven Solivio Screen Shot 2022-02...7.26 PM Samantha_O Transcript.pdf М13А1 TMO 807
c. Variable Billing per unit:
n/a
6. Using MVP's 2021 income statement above, prepare a contribution margin income statement below (all amounts should be a formula/link to the information provided above):
87
38
Total
Amount
Total Units
n/a
n/a
Per Unit
39
Sales
n/a
40
Variable Costs:
41
Direct Materials
n/a
n/a
n/a
42
Direct Labor
n/a
43
Variable Manufacturing Overhead
n/a
n/a
44
Sales Commissions
n/a
n/a
Shipping
Variable Billing
45
n/a
n/a
46
n/a
n/a
47
Total Variable Costs
n/a
n/a
48
Contribution Margin
n/a
n/a
49
Fixed Costs:
50
Fixed Manufacturing Overhead
n/a
51
Advertising
n/a
52
Sales and Admin. Salaries
n/a
53
Fixed Billing
10,000
54
Total Fixed Costs
n/a
n/a
55
Net Operating Income (Loss)
Hint: Operating Income (Loss) must equal the ori
56
57
Calculate MVP's current bre akeven point in both units and dollars:
58
Units:
n/a
59
Dollars (use the Contribution Margin Ratio to calculate):
n/a
60
61
Redo MVP's Contribution Margin Income Statement using the Vice President of Sales (VP) suggestions and projected increase in sales volume below (all amounts should be a formula/link):
62
Reduce selling price by:
5.00%
63
Increase advertising costs by: $
4,900
64
Projected sales volume increase:
25.00%
Instructions
A M5 Project
Ready
Page 1 of 1
四
VVInal T appeis LU UIC UIean VOn poi R HE U LD Oal HAGU COSE Creasosr
57 words
Matn 50
chedul...022.docx
Samanth...ivio.xls
Which of the following statements is true if the sales price per unit decreases while
variable cost per unit and total fixed cost remain constant?
When total fixed.costs decrease the breakeven point?
Screen Shot
2022-02.7.26 PM
Samantha O
English Quiz
2021-02 1.55 PM
Transcript.pdt
M13A1
IMG
expand button
Transcribed Image Text:c. Variable Billing per unit: n/a 6. Using MVP's 2021 income statement above, prepare a contribution margin income statement below (all amounts should be a formula/link to the information provided above): 87 38 Total Amount Total Units n/a n/a Per Unit 39 Sales n/a 40 Variable Costs: 41 Direct Materials n/a n/a n/a 42 Direct Labor n/a 43 Variable Manufacturing Overhead n/a n/a 44 Sales Commissions n/a n/a Shipping Variable Billing 45 n/a n/a 46 n/a n/a 47 Total Variable Costs n/a n/a 48 Contribution Margin n/a n/a 49 Fixed Costs: 50 Fixed Manufacturing Overhead n/a 51 Advertising n/a 52 Sales and Admin. Salaries n/a 53 Fixed Billing 10,000 54 Total Fixed Costs n/a n/a 55 Net Operating Income (Loss) Hint: Operating Income (Loss) must equal the ori 56 57 Calculate MVP's current bre akeven point in both units and dollars: 58 Units: n/a 59 Dollars (use the Contribution Margin Ratio to calculate): n/a 60 61 Redo MVP's Contribution Margin Income Statement using the Vice President of Sales (VP) suggestions and projected increase in sales volume below (all amounts should be a formula/link): 62 Reduce selling price by: 5.00% 63 Increase advertising costs by: $ 4,900 64 Projected sales volume increase: 25.00% Instructions A M5 Project Ready Page 1 of 1 四 VVInal T appeis LU UIC UIean VOn poi R HE U LD Oal HAGU COSE Creasosr 57 words Matn 50 chedul...022.docx Samanth...ivio.xls Which of the following statements is true if the sales price per unit decreases while variable cost per unit and total fixed cost remain constant? When total fixed.costs decrease the breakeven point? Screen Shot 2022-02.7.26 PM Samantha O English Quiz 2021-02 1.55 PM Transcript.pdt M13A1 IMG
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