Please do not give solution in image format thanku Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to 0decimal places, eg. 15 or 15%)Contribution margin ratioAnnual margin of safety ratioAnnual operating income$Percent increase in unit sales5280Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually.Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in partsecond part. (Round answer to 2 decimal places, e.g. 15.25%.)%%%Sales required to earn an operating income of $302,400 $Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2Net salesDirect materialsDirect labourManufacturing overhead-variableManufacturing overhead-fixed$420,00075.60050,40016,80025,200Selling expenses-variableSelling expenses-fixedAdministrative expenses-variableAdministrative expenses-fixed$16,80016,8008,4008,400

The question is related to Marginal Costing. The Contribution Margin Ratio is calculated with the…

Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to 0 decimal places, e.g. 15 or 15%.) Contribution margin ratio Annual margin of safety ratio 12 Annual operating income Percent increase in unit sales $ 52 Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, eg. 15.25%) % 80 % Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Sales required to earn an operating income of $302,400 $

Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to 0 decimal places, e.g. 15 or 15%.) Contribution margin ratio Annual margin of safety ratio 12 Annual operating income Percent increase in unit sales $ 52 Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, eg. 15.25%) % 80 % Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Sales required to earn an operating income of $302,400 $

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

See similar textbooks

Similar questions

Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
X Company sells one product. The following are the accountant's price and cost estimates for next year: Selling price Direct materials per unit Direct labor per unit [all variable] Variable overhead per unit Variable selling and administration per unit Total fixed overhead Total fixed selling and administration $16.32 3.51 1.61 2.43 2.00 A: $20,980 OB: $24,547 Oc: $28,720 OD: $33,602 OE: $39,315 OF: $45,998 Submit Answer $11,900 10,900 Unit sales this year are expected to be 5,400; next year, they're expected to be 6,000. The accountant is uncertain about her $10,900 total fixed selling and administration estimate. What must total fixed selling and administration be next year in order for X Company to breakeven?
Required information [The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations Direct materials Direct labor s 35 per unit Variable overhead 5 25 per unit $10 per unit Fixed overhead Variable selling and administrative expenses $ 48,000 per year $3 per unit Fixed selling and administrative expenses $ 20,000 per year The company sells its product for $150 per unit. Compute gross profit using absorption costing assuming the company (al produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units. Answer is not complete. (a) 2,000 Units Produced and 2.000 Units Sold (0)2,400 Unit Produced and 2,000 Units Sold Gross profit using absorption costing Sales Cost of goods sold Gross profit 00
6. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL MANUFACTURING (PRODUCT) COSTS?
The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense P 435,000 215,000 190,000 185,000 1. What is Antonio's prime cost for last quarter? a. P460,000 b. P410,000 c. P405,000 d. P 375,000 2. Antonio's total manufacturing cost is a. P460,000 b. P 645,000 . P 650,000 d. P 840,000
The following particulars are extracted from the records of a company. Product A Product B Sales (per unit) RO. 100 RO. 120 Consumption of material Material cost 2 kg 3 kg RO. 10 RO. 15 Direct wages cost RO. 15 RO. 10 Direct expenses RO. 5 RO. 6 Machine hours used 3 Overhead expenses: Fixed 10 Variable 15 20 Direct wage per hour is RO.5. Comment on the profitability of each product (both use the same raw material) when: (i) Total sales potential in units is limited Production capacity (in terms of machine hours) is the limiting factor. Material is in short supply (ii) (iv) Sales potential in value is limited.
8. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL PERIOD COSTS?
The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense P 435,000 215,000 190,000 185,000 1. What is Antonio's prime cost for last quarter? a. P460,000 b. P 410,000 c. P 405,000 d. P375,000 2. Antonio's total manufacturing cost is P 460,000 b. P 645,000 P 650,000 d. a. C. P 840,000 3. Antonio's total period cost is P 185,000 b. a. P 275,000 P 400,000 d. с. P 620,000
The following information relates to the Jasmine Company for the upcoming year: Sales Amount Per Unit Sales $8,120,000 6,496,000 $32.00 Cost of goods sold Gross margin Operating expenses 22.00 1,624,000 10.00 690,000 3.00 Operating profits $ 934,900 $ 7.00 The cost of goods sold includes $2,375,100 of fixed manufacturing overhead; the operating expenses include $223,100 of fixed marketing expenses. A special order offering to buy 56.000 units for $16.20 per unit has been made to Jasmine. Fortunately, there will be no additional operating expenses associated with the order; however, Jasmine is operating at full capacity. How much will operating profits increase if Jasmine accepts the special order? Multiple Choice $280,000. $140,000. $56,000. Operating profits will not increase as a result of accepting the special order.
Accounting Alta Ltd. is manufacturing three products : A, B and C. The costs of manufacture are as follows Fixed costs of Alta Ltd. is $15,000. Calculate profit and do a CVP Analysis for Alta Ltd. Products Raw Material Labour Overheads Sales A 16,000 14,000 10,000 60,000 B 20,000 17,000 12,000 70,000 C 26,000 18,000 14,000 80,000