3 wwwCorporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows:SalesVariable expensesContribution MarginFixed ExpensesNet operating income (loss)Multiple ChoiceCandy$4,200,000 $3,000,000$1,200,0002.000.000 1.500.000 500.0002,200,000 1,500,000700,0002.200.0001.300.000900.000200,000 (200,000)Decrease by $250,000TotalDecrease by $240.000DepartmentToys0AKstudy indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if theCandy Department is dropped. In addition, the elimination of the Candy Department will result in a 10% decrease in the sales of the Toys Department.Q) If the Candy Department is dropped, what will be the effect on the net operating income of theCorporation as a whole?< Prev11 of 20MacBook Aave & ExitNext

Fixed expenses or costs are those costs which remains unchanged irrespective of the level of…

Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows: Department Toys Sales Variable expenses Contribution Margin Fixed Expenses Net operating income (loss) Total Candy $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2,200,000 1,500,000 700,000 2.200.000 1.300.000 900.000 200,000 (200,000) Multiple Choice study indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 10% decrease in the sales of the Toys Department. Q) If the Candy Department is dropped, what will be the effect on the net operating income of the K Decrease by $250,000 0 Decrease by $240.000 < Prev 11 of 20 Next Corporation as a whole? A o O D

Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows: Department Toys Sales Variable expenses Contribution Margin Fixed Expenses Net operating income (loss) Total Candy $4,200,000 $3,000,000 $1,200,000 2.000.000 1.500.000 500.000 2,200,000 1,500,000 700,000 2.200.000 1.300.000 900.000 200,000 (200,000) Multiple Choice study indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Candy Department is dropped. In addition, the elimination of the Candy Department will result in a 10% decrease in the sales of the Toys Department. Q) If the Candy Department is dropped, what will be the effect on the net operating income of the K Decrease by $250,000 0 Decrease by $240.000 < Prev 11 of 20 Next Corporation as a whole? A o O D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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YKQOUC251 Corporation has two departments, Toys and Candy. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution Margin Fixed Expenses Net operating income (loss) Total Candy. $4,200,000 $3,000,000 $1,200,000 2,000,000 1,500,000 500,000 2,200,000 1,500,000 700,000 2,200,000 1,300,000 900,000 200,000 (200,000) 0 Department Toys A YKQOUC251's study indicates that $300,000 of the fixed expenses being charged to the Candy Department are sunk costs or allocated costs that will continue even if the Cand is dropped. In addition, the elimination of the Candy Department will result in a 20% decrease in the sales of the Toys Department. Q: If the Candy Department is dropped, what will be the effect on the net operating income of the YKQOUC251 Corporation as a whole?
A merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanks
igmeniMalh.do?invoker=&takeAssignmentSessionLocator=&inprogress%3Dfalse Show Me How Print Item eBook Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,384.5) $(15,083.3) Operating income $211.7 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). million b. What is McDonald's contribution margin ratio? Round to one decimal place. % c. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest…
Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $enter the sales revenue amount in dollars $504,696 $enter the sales revenue amount in dollars $671,472 Variable expenses 236,284 enter the variable expenses amount in dollars 123,704 enter the variable expenses amount in dollars Contribution margin 150,052 156,624 enter the contribution margin in dollars 490,336 Fixed expenses enter the fixed expenses amount in dollars 87,320 138,084 enter the fixed expenses amount in dollars Operating income 20,502 enter the operating income amount in dollars enter the operating income amount in dollars enter the operating income amount in dollars Income taxes enter the income tax amount in dollars 20,791 20,278 63,805 Net income $14,351 $enter the net income amount in dollars $60,834 $191,415
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 300,000 $ Sales Beginning merchandise inventory 20,000 $ 200,000 $ $ $ Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 7,000 ? 12,000 $ 15,000 $ 60,000 $ 18,000 Required: 1. Prepare a contribution format income statement.
Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $ $485,168 $ $686,356 Variable expenses 232,804 102,728 Contribution margin 130,532 171,860 430,808 Fixed expenses 87,912 146,396 Operating income 21,597 Income taxes 25,184 21,532 60,859 Net income $15,118 $ $64,596 $182,577
PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even.
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recentmonthly contribution format income statement follows:DepartmentTotal Hardware LinensSales ................................................ $4,000,000 $3,000,000 $1,000,000Variable expenses ........................... 1,300,000 900,000 400,000Contribution margin .......................... 2,700,000 2,100,000 600,000Fixed expenses ................................ 2,200,000 1,400,000 800,000Net operating income (loss) ............. $ 500,000 $ 700,000 $ (200,000)A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocatedcosts that will continue even if the Linens Department is dropped. In addition, the elimination of the LinensDepartment will result in a 10% decrease in the sales of the Hardware Department.Required:If the Linens Department is dropped, what will be the effect on the net operating income of the companyas a whole?
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Cozy $15.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly $10.00 $ 2.50 $ 7.50 2,100 units 700 units Fixed expenses are $2,520 per month.
The most recent monthly income statement for Headphones Manufacturing Company is given below: Department A Department B (S) 600,340 Total (S) 1,006,990 (S) Sales 406,650 Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 256.530 420.000 180,340 676,530 150,120 330,460 100,000 50,120 200.000 (19,660) 300,000 30,460 20.870 29.130 50,000 29,250 (48,790) (19,540) Due to its poor result, consideration is being given to closing Department B. Studies show that if Department B is closed, 20% of its traceable fixed expenses will continue unchanged. The studies also show that closing Department B would result in a 5 percent decrease in sales in Department A. The company allocates common fixed expenses to the departments on the basis of sales dollars. Required: c) The company has done a detailed investigation to the production in Department A. Currently, department produces 4 products as follow: A B Selling price per unit…
The following information is available for Concord Corporation: Total fixed $150000 expenses == Total variable. 320000 expenses Sales Cost of goods sold $570000 370000 A CVP income statement would report O gross profit of $250000, contribution margin of $420000. Ogross profit of $200000. O contribution margin of $250000.