FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- If Swannanoa Company's budgeted sales are $800,000, fixed costs are $250,000, and variable costs are $500,000, what is the budgeted contribution margin ratio? If the contribution margin ratio is 35%, sales are $900,000, and fixed costs are $200,000, what is the operating income?arrow_forwardManly Beach Enterprises projects the following information for the coming year. Sales Production 1,900 units 2,000 units Selling price per sewing machine Total variable manufacturing cost Total fixed manufacturing cost Marketing and administrative cost (40% variable based on sales) $200 $160,000 $60,000 $80,000 a. Determine the projected net income using absorption costing: $ b. Determine the projected net income using variable costing: $arrow_forwardIn the current year, Becker Sofa Company expected to sell 12,900 leather sofas. Fixed costs for the year were expected to be $8,404,500; unit sales price was budgeted at $5,050; and unit variable costs were expected to be $2,650.Becker Sofa Company's margin of safety (MOS) in units is: Multiple Choice 9,698. 8,898. 10,798. 9,998. 9,398.arrow_forward
- Contribution Margin Ratio a. Young Company budgets sales of $1,050,000, fixed costs of $80,300, and variable costs of $357,000. What is the contribution margin ratio for Young Company? D% b. If the contribution margin ratio for Martinez Company is 39%, sales were $627,000, and fixed costs were $190,730, what was the operating income?arrow_forwardDevelop an equation for total monthly production costs. Total Monthly Production costs = Fixed Costs + Variable Costs = _____________ + ($ per unit X Number of units) Predict total costs for a monthly production volume of 9,000 units.arrow_forwardMore-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Regular Sander Mini-Sander Total Sales $3,000,000 $1,800,000 $4,800,000 Less: Variable expenses 1,800,000 900,000 2,700,000 Contribution margin $1,200,000 $900,000 $2,100,000 Less: Direct fixed expenses 250,000 450,000 700,000 Product margin $950,000 $450,000 $1,400,000 Less: Common fixed expenses 600,000 Operating income $800,000 Required: 1. For each of the following possible sales mixes, calculate operating income: Regular Sander Mini-Sander a. 75,000 37,500 b. 60,000 60,000 c. 30,000 90,000 d. 30,000 60,000 Operating Income a. $_________ b. $______ c. $________ d. $_________ 2. Calculate the break-even units for each product for each of the preceding sales mixes. Round the number of break-even packages to two decimal…arrow_forward
- need answer with brief explanationarrow_forwardDuring the current year, OutlyTech Corp. expected to sell 22,500 telephone switches. Fixed costs for the year were expected to be $12,142,500, the unit sales price was budgeted at $3,250, and unit variable costs were budgeted at $1,400. OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number): Multiple Choice 17,106. 15,936. 19,716. 15,806. 21,026.arrow_forwardDuring the current year, Mute Corporation expected to sell 24,300 telephone switches. Fixed costs for the year were expected to be $12,145,500, the unit sales price was budgeted at $3,350, and unit variable costs were budgeted at $1,560. Mute's margin of safety ratio (MOS %) is: (Do not round intermediate calculations.) Multiple Choice 72.07%. 87.82%. 71.07%. 93.32%. 76.97%.arrow_forward
- Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147,000, and budgeted fixed costs are $227,500. Refer to Figure 4-1. What is the variable cost ratio? 54% 35% 89% 19% 50%arrow_forwardContribution margin ratio a. Coastal Company budgets sales of $1,080,000, fixed costs of $38,900, and variable costs of $172,800. What is the contribution margin ratio for Coastal Company?fill in the blank 1 of 1 % b. If the contribution margin ratio for Bushner Company is 42%, sales were $848,000, and fixed costs were $277,800, what was the operating income?fill in the blank 1 of 1$arrow_forwardHenderson Company has fixed costs of $32,000 and a contribution margin ratio of 25%. If expected sales are $200,000, what is the margin of safety as a percent of sales? Multiple Choice O O O O O 28%. 56%. 36%. 17%. 64%.arrow_forward
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