Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is: sales revenue of $19,440,000. Fixed costs of $10,368,000. Total variable costs of $6,480,000. The total costs is $16,848,000. A net income of $2,592,000.  At what percentage of capacity would Beta Inc. break even. What would be Beta's net income if it operates at 70% of capacity.

Top managers of Root Industries predicted 2024 sales of 14,700 units of its product at a unit price of $7.50. Actual sales for the year were 14,500 units at $9.50 each. Variable costs were budgeted at $2.70 per unit, and actual variable costs were $2.80 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $5,000. Prepare Root's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Units Sales Revenue Variable Costs Contribution Margin Budget Amounts Per Unit 7.5 2.7 Root Industries Flexible Budget Performance Report For the Year Ended…

The firm’s tentative budget for next year includes: Sales- ₱400,000; Variable Expenses-₱250,000; Fixed Manufacturing Overhead- ₱80,000; Selling and Administrative Expenses-₱150,000. With a tax rate of 25%, the forecasted net income is ₱52,500. Mr. Bong, the marketing manager proposed an aggressive advertisement costing additional ₱25,000 that he predicts will result in a 25% unit sales increase. Assuming that Bong’s proposal will be incorporated into the budget, what should be the increase in the budgeted net income for next year? a. ₱12,000 b. ₱25,000 c. ₱103,125 d. ₱56,250 e. ₱37,500

In the previous year, Company E sold 10,000 units for $328,000. In the coming year they are anticipating selling 20% more units than last year. Assuming they do not change their selling price, what is their budgeted revenue for the upcoming year?

Carousel Co. has prepared the following budget data: Sales, 150,000 units; selling price per unit, P25.00; variable cost per unit, P15.00; fixed costs and   expenses, P1,300,000. An advertising agency claims that an aggressive             advertising campaign would enable the company to increase its unit sales by    20%.   What is the maximum amount that the company can pay for advertising     and obtain a net operating income of P300,000?

Fazel Company makes and sells paper products. In the coming year, Fazel expects total sales of $19,730,000. There is a 3% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries $ 960,000 Utilities 365,000 Office space 230,000 Advertising 1,200,000 Required: Prepare a selling and administrative expenses budget for Fazel Company for the coming year. What is the answer for variable selling expenses? Total selling and administrative expenses?

15. Texas Company has begun selling new chili recipe and they want you to help with next year's budgeted financial statements. Using the worksheet below, complete Texas Company forecast and answer the questions which follow. Assumptions: To begin with, Texas Company is sure sales will grow 40% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grow a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged, and that $3,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year. Texas Company Financial Forecast Estimated This Year for next year $45,000 $5,000 40,000 Sales COGS Gross Profit 3,000 37,000 Fixed Expenses Before-Tax Profit Tax @ 33.3333% Net Profit 12.332 24,668 Dividends $0 Current Assets $30,000 20,000 $50,000 Net Fixed Assets Total Assets…

1)Chaucer Ltd. has current assets of $450,000 and capital assets of $630,000. Its budgeted productionvolume for the next fiscal year is 200,000 units. Fixed costs are projected at $400,000 and variable unitcosts for the one product produced total $5/unit. The company defines ROI as Operating Income/TotalAssets and its required rate of return is 14%.Prepare a brief memo to the President of Chaucer outlining the advantages and disadvantages of ROI andResidual Income. Include your recommendations for the most appropriate method for calculating thebonus.

Star corp. plans to sell 200,000 units of product A with a selling price of Rp 2,500 / unit in the 20x9 fiscal year. Profit contribution is estimated at 60% of sales revenue. At the level of sales volume of 100,000 units the company is at break even.Question: a. How much is the fixed cost? b. How much profit or loss on sales is budgeted? c. What is the variable cost per unit? d. What is the sales revenue at break-even?

Fairfield Company management has budgeted the following amounts for its next fiscal year:   If Fairfield can reduce fixed expenses by $41,625, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? a. $2.78 b. $0.53 c. $0.25 d. $0.75