Begin by preparing the projected income statement using the traditional format. (Round your answers to the nearest whole dollar. Enter losses with parentheses ora minus sign.)Pillard DrycleanersProjected Income StatementMonth Ended March 31Dry cleaning revenue$Less: Operating costsOperating income (loss)Next complete the projected contribution margin income statement. (Round your answers to the nearest whole dollar. Enter losses with parentheses or a minussign.)Pillard DrycleanersProjected Contribution Margin Income StatementMonth Ended March 31Dry cleaning revenueLess:Variable costsContribution marginLess:Fixed costsOperating income (loss) Pierce Drycleaners has capacity to clean up to 6,000 garments per month.E (Click the icon to view the cost schedule.)Assume that Pierce charges customers $12 per garment for dry cleaning. Prepare Pierce's projected income statement if 4,220 garments are cleaned in March. First,prepare the income statement using the traditional format; then prepare Pierce's contribution margin income statement.Data tableswers to the nearest whole dollar. Enter losses with parentheses or a4,500Garments3,0006,000GarmentsGarmentsTotal variable costs$2,100 $3,150 $4,200Total fixed costs10,80010,80010,800$12,900 $13,950 $15,000Total operating costsVariable cost per garment2$0.70 $0.70 $0.703.602.401.80Fixed cost per garment$Average cost per garment4.30 $3.10 $2.50PrintDone

Income statement is one of the financial statement which shows all incomes and all expenses of the…

Begin by preparing the projected income statement using the traditional format. (Round your answers to the nearest whole dollar. Enter losses with parentheses c a minus sign.) Pillard Drycleaners Projected Income Statement Month Ended March 31 Dry cleaning revenue Less: Operating costs Operating income (loss) Next complete the projected contribution margin income statement. (Round your answers to the nearest whole dollar. Enter losses with parentheses or a minus sign.) Pillard Drycleaners Projected Contribution Margin Income Statement Month Ended March 31 Dry cleaning revenue

Begin by preparing the projected income statement using the traditional format. (Round your answers to the nearest whole dollar. Enter losses with parentheses c a minus sign.) Pillard Drycleaners Projected Income Statement Month Ended March 31 Dry cleaning revenue Less: Operating costs Operating income (loss) Next complete the projected contribution margin income statement. (Round your answers to the nearest whole dollar. Enter losses with parentheses or a minus sign.) Pillard Drycleaners Projected Contribution Margin Income Statement Month Ended March 31 Dry cleaning revenue

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

See similar textbooks

Similar questions

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required information. You can assume 365 days in a year. a) Alpha Co. reported a cost of goods sold of $64,380.00 and an accounts payable balance of $16,700.00 last year. Compute the average time taken to pay suppliers. Discuss the significance of a longdays’ costs in payables for the firm. b) Bravo Ltd. equity multiplier is 1.93, its total asset turnover is 2.65, and its profit margin is 4.20 percent. Compute the Return on Equity (ROE). Explain the impact on ROE, should the total asset turnover decline next year. c) Charlie Inc. has a profit margin of 7.90 percent, a total asset turnover of 1.54, and a Return on Equity (ROE) of 13.47 percent. Solve for the debt-equity ratio. d) Delta GMBH’s ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is $964,000.00. Determine the return on assets (ROA).
Huge Company’s traditional format income statement for the month of May was as follows: Using the space provided below, please prepare an income statement for the month in contribution margin format b. By how much would net income increase if sales increased by $30,000?
Data for Hermann Corporation are shown below: Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $15,300 ? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,200 and monthly sales increase by $15,300 ? (Round any unit calculations up to the nearest whole unit.)
I am having trouble computing the revenue for the income statement.Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month.
The following monthly data are available for National Co., which produces only one product: Selling price per unit, P42; Unit variable expenses, P14; Total fixed expenses, P42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company in June?
3) Popular Inc. produces and sells two products. During the most recent month, Pen's sales were $24,000 and its variable expenses were $7,920. Pencil's sales were $41,000 and its variable expenses were $14,180. The company's fixed expenses were $40,350. Required: a. Prepare a contribution format income statement for the business. b. Determine the overall break-even point for the company in total sales dollars. c. Verify your answer of requirement b by constructing a contribution income statement.
Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expense, 74% is cost of goods sold, while the remaining 26% relates to variable operating expenses. The company sells each carton of calendars for $16.50. 1. Begin by determining the basic income statement equation. - - = Operating income Compute the number of cartons of calendars that College Spirit Calendars must sell each month to break even. 2. Compute the dollar amount of monthly sales that the company needs in order to earn $308,000 in operating income (round the contribution margin ratio to two decimal places). Begin by determining the formula. ( + ) / = Target sales in dollars 3. Prepare the company's contribution margin income statement for June for sales of 450,000 cartons of calendars 4.…
Using the data from the attached picture, compute for the following: 1. If 5,000 units are sold, what will be the store’s operating income (loss)?2. If sales commissions are discontinued and fixed salaries are raised by a total of₱810,000, what would be the annual breakeven point in (a) units sold and (b) revenues?3. Refer to the original data. If in addition to his fixed salary, the store manager is paida commission of ₱30 per unit in excess of the break-even point, what would be the store’s operating income if 10,000 units were sold.
At the conclusion of her first month of operating Val's Donut Shop, Val computed the following revenue and expense figures: week revenue expenses profit 1 44,725 38,090 2 57,380 26,123 3 63,090 43,957 4 67,255.50 74,310 month to receive 60,000 profit for the month month Prepare both weekly and monthly profit formulas so that Val has a good idea about her current profit situation. Also, given her sales for the month, tell her how much her ideal expense should have been to realize her desired profit of ₱60,000.00
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Required:1. What is the monthly break-even point in unit sales and in dollar sales?2. Without resorting to computations, what is the total contribution margin at the break-even point?3. How many units would have to be sold each month to attain a target profit of $90,000? Verify your answer by preparing a contribution format income statement at the target sales level.4. Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms.5. What is the company’s CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?