beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales   $2,000,000   Selling expenses—variable   $109,000 Direct materials   550,000   Selling expenses—fixed   58,000 Direct labor   400,000   Administrative expenses—variable   21,000 Manufacturing overhead—variable   420,000   Administrative expenses—fixed   52,000 Manufacturing overhead—fixed   190,000   Prepare a CVP income statement for 2020 based on management’s

Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At year-end, the company reported the following income statement information using absorption costing.   Sales (800 × $1,050) $ 840,000 Cost of goods sold (800 × $450) 360,000 Gross profit 480,000 Selling and administrative expenses 220,000 Income $ 260,000  Additional Information a. Product cost per kayak under absorption costing totals $450, which consists of $350 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $105,000 of fixed overhead per year divided by 1,050 kayaks produced.b. The $220,000 in selling and administrative expenses consists of $85,000 that is variable and $135,000 that is fixed.Prepare an income statement for the current year under variable costing.

Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000

Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Total Department Hardware Linens Sales $4,200,000 $3,090,000 $1,110,000 Variable expenses 1,240,000 840,000 400,000 Contribution margin 2,960,000 2,250,000 710,000 Fixed expenses 2,300,000 1,470, 000 830,000 Net operating income (loss) $ 660,000 $ 780,000 $ (120,000) A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 11% decrease in the sales of the Hardware Department. Required: What is the financial advantage ( disadvantage) of discontinuing the Linens Department?

The following is Pacific Limited’s contribution format income statement for January 2022:    Sales $1,400,000 Variable expenses 700,000 Contribution margin 700,000 Fixed expenses 400,000 Net operating income $ 300,000   The company has no beginning or ending inventories and produced and sold 25,000 units during the month.   Required (show your calculation):   a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think?    d.d. Company’s Marketing Manager is confident that she can increase sales by 28% next year with some effort. What would be the expected percentage increase in net operating income? Use the degree of operating leverage concept to compute your answer

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The following information is available for Diva Footwear’s segments:                                                                    Platform Shoes      Athletic Shoes      Boots Sales                                          $120,000                  $420,000          $360,000 Variable costs                                64,000                   220,000            140,000 Contribution margin                       56,000                    200,000            220,000 Direct fixed costs                           45,000                      70,000              90,000 Allocated fixed costs                     20,000                       70,000              60,000 Net income                                ($  9,000)                    $  60,000         $  70,000   Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,000 pairs of boots for a one-time export deal for $85 per pair. Diva can avoid $5.00 per pair of the normal variable cost on…