À week before the end of Its fiscal year, a company forecasts that it will not meet its target net operating income of $1,000,000 for the year (based on absorption costing). Forecast data is as follows: Sales Revenue Variable COGS Fixed manufacturing overhead Variable S&A: Commission on Sales Fixed S&A $10,000,000 $4,000,000 $5,000,000 3% $100,000 $200/unit $80/unit In the past, the company has had a policy of having zero inventories at the end of each period. For the current year, no further sales are possible and all of the units produced so far have been sold. The CEO has decided to produce additional units for Inventory in the last week of the year in order to meet the income target. How many additional units (nearest whole number) need to be produced for inventory in the last week of the year in order to meet the net operating income target if the sales commission is left unchanged at 3%? O 50,000 O 3,191 O 54,348

À week before the end of Its fiscal year, a company forecasts that it will not meet its target net operating income of $1,000,000 for the year (based on absorption costing). Forecast data is as follows: Sales Revenue Variable COGS Fixed manufacturing overhead Variable S&A: Commission on Sales Fixed S&A $10,000,000 $4,000,000 $5,000,000 3% $100,000 $200/unit $80/unit In the past, the company has had a policy of having zero inventories at the end of each period. For the current year, no further sales are possible and all of the units produced so far have been sold. The CEO has decided to produce additional units for Inventory in the last week of the year in order to meet the income target. How many additional units (nearest whole number) need to be produced for inventory in the last week of the year in order to meet the net operating income target if the sales commission is left unchanged at 3%? O 50,000 O 3,191 O 54,348

Name: A week before the end of Its fiscal year, a company forecasts that It
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: A week before the end of Its fiscal year, a company forecasts that It will not meet its target net operating income of $1,000,000 for theyear (based on absorption costing). Forecast data is as follows:Sales RevenueVariable COGSFixed manufacturing ov

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

The following information relates to XYZ manufacturing for the first quarter of 2021: Fixed Cost MVR 50,000 Total Cost MVR 80,000 Total Revenues MVR 120,000 Number of units produced and sold during the period is 10000 units. Calculate: a) Break-even point in units b) Margin of safety in units and value
Dhapa
Norwood Company has the following information for July: Sales $440,000 Variable cost of goods sold 198,000 Fixed manufacturing costs 70,400 Variable selling and administrative expenses 44,000 Fixed selling and administrative expenses 26,400 Determine the following for Norwood Company for the month of July: a. Manufacturing margin $fill in the blank 1 b. Contribution margin $fill in the blank 2 c. Operating income $fill in the blank 3
The following data relate to the Torrence Company for May and August: May August Maintenance hours 20,000 45, 000 Maintenance cost $ 1,322, 000 $ 1,417,000 May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 23, 000 hours in October, which of the following statements is true? (a) Total maintenance cost will be $ 1,322,000, (b) $1,329,000, (c) $1,379, 000, (d) 1,394, 000, (e)$1,417,000
PROVIDE Answer with calculation
Bramble Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income.Compute the net income to be earned under each alternative.1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $enter a net income if the selling price is increased by 10% 2. Reduce variable costs to 55% of sales. Net income $enter a net income if the variable costs are reduced to 55% of sales 3. Reduce fixed costs by $18,000. Net income $enter a net income if the fixed costs are reduced by $18,000
These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
Imagination Corporation uses residual income to evaluate the performance of its divisions. Imagination's minimum required rate of return is 10%. In April, the Commercial Products Division had average operating assets of $105,000 and net operating income of $9,700. What was the Commercial Products Division's residual income in April? Multiple Choice $970. $(970). $800. $(800).
Assume the following information for the first year of operations for a company that sells only one product for a price of $48 per unit: 19 Variable cost per unit: Direct materials 25 Fixed costs per year: points Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $140,000 $200,000 $ 70,000 00:31:10 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first y operations, the company produced 20,000 units and sold 18,000 units. The company wishes to compare a variable costing system that assigns $7.00 of direct labor cost to each unit produced with a super-varia system. Which of the following statements is true when comparing these two cost systems? Multiple Choice The variable costing net operating income will be $14,000 greater than the super-variable costing net operating Income. The variable costing net operating income will be $126,000 greater than the super-variable costing…
The following information for the past year for the Blaine Corporation has been provided: Fixed costs: Manufacturing $130,000 Marketing 18,000 Administrative 21,000 Variable costs: Manufacturing $113,000 Marketing 35,000 Administrative 38,000 During the year, the company produced and sold 60,000units of product at a selling price of $19.19 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin for the year?
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (36,000 units) $ 180,000 $ 5.00 Variable expenses 72,000 2.00 Contribution margin 108,000 $ 3.00 Fixed expenses 43,000 Net operating income $ 65,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 17%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 24%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 13%?