Cosgrove Company, Inc. is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below:   Identify the fixed and variable costs associated with Cosgrove.   Calculate the average costs per month. Cosgrove Company Traditional Format Income Statement For the Three Months Ended June 30   April May June Sales in Units 3,000 3,750 4,500         Sales Revenue 420,000 525,000 630,000 Cost of Goods Sold 168,000 210,000 252,000 Gross Margin 252,000 315,000 378,000 Selling and Administrative Expenses:            Shipping Expense 44,000 50,000 56,000      Advertising Expense 70,000 70,000 70,000      Salaries and Commissions 107,000 125,000 143,000      Insurance Expense 9,000 9,000 9,000      Depreciation Expense 42,000 42,000 42,000 Total Selling and Administrative Expenses 272,000 296,000 320,000 Net Operating Income (Loss) $(20,000) $19,000 $58,000

Bolka Corporation, a merchandising company, reported the following results for October:   Sales $ 418,000 Cost of goods sold (all variable) $ 175,500 Total variable selling expense $ 23,700 Total fixed selling expense $ 21,800 Total variable administrative expense $ 16,200 Total fixed administrative expense $ 34,300   The contribution margin for October is:   Multiple Choice   $146,500   $361,900   $202,600   $242,500

Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin. expenses Direct fixed expenses Sales Direct fixed selling and admin. expenses Variable expenses Operating income Common expenses are $105,000 for the year. What is the income for Tyler Company? $102,500 $120,500 $99,000 $101,000 Product A $38,000 19,500 250,000 38,000 42,000 $112,500 " Product B $31,000 34,500 210,000 22,000 31,000 $91,500

ulcan Company's contribution format income statement for June is as follows: Vulcan Company Income Statement For the Month Ended June 30 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 900,000 408,000 492,000 455,000 $ 37,000 Management is disappointed with the company's performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following: a. The company is divided into two sales territories-Northern and Southern. The Northern Territory recorded $400,000 in sales and $208,000 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern Territory. Fixed expenses of $164,000 and $125,000 are traceable to the Northern and Southern Territories, respectively. The rest of the fixed expenses are common to the two territories. b. The company is the exclusive distributor for two products-Paks and Tibs. Sales of Paks and Tibs totaled $150,000 and…

Income Statements Segmented by TerritoryScript, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC.Product Line and Company Income StatementsFor Month of September   Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (9,000) (8,000) (17,000) Product margin $6,000 $10,000 $16,000 Less common fixed expenses     (6,000) Net income     $10,000   Pens and pencils are sold in two territories, Florida and Alabama, as follows:   Florida Alabama Pen sales $14,000 $11,000 Pencil sales 4,000 26,000 Total sales $18,000 $37,000   The preceding common fixed expenses are traceable to each territory as follows: Florida fixed expenses $2,000 Alabama fixed expenses 3,000 Home office administration fixed expenses 1,000 Total common fixed expenses $6,000   The…

Jenna Corporation sells a single product. Management has provided the following data for two levels of monthly sales volume. The company sells the product for $172.50 per unit. Sales Volume in Units 4,000 5,000 Cost of Sales (COS) $307,600 $384,500 Selling, General & Administrative Costs (SG&A) $321,200 $337,000 Selling Price Per Unit $173 Total costs for these cost categories and may include both Fixed and Variable costs. HINT: See high-low analysis. 1. Calculate the total contribution margin when 4,300 units are sold. 2. What is the breakeven point in Sales dollars if Advertising (a fixed SG&A cost) is increased by $40,000? Please show calculations.

A condensed income statement by product line for British Beverage Inc. indicated the following for Royal Cola for the past year: Sales $236,800 Cost of goods sold 109,000 Gross profit $127,800 Operating expenses 145,000 Loss from operations $(17,200) It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 19% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a.  Prepare a differential analysis, dated March 3, to determine whether Royal Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0". Use a minus sign to indicate a loss. Differential Analysis Continue Royal Cola (Alt. 1) or Discontinue Royal Cola (Alt. 2) January 21   Continue RoyalCola (Alternative 1) Discontinue RoyalCola (Alternative 2) Differential Effecton Income(Alternative 2)…

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Geneva Company reports the following information for July: Sales $ 762,000 Variable cost of goods sold 229,000 Fixed cost of goods sold 104,000 Calculate the contribution margin for July. Multiple Choice

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Income Statements (Absorption Costing) Sales ($52 per unit) Cost of goods sold ($36 per unit) Year 2 Year 1 $ 1,508,000 1,044,000 $ 2,756,000 1,908,000 Gross profit Selling and administrative expenses Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 41,000 29,000 Year 2 41,000 53,000 464,000 366,000 848,000 462,000 $ 98,000 $ 386,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $36 per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($451,000/41,000 units) Total product cost per unit $ 11 11 3 11 $ 36 c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Variable selling and administrative…