DotCom Inc. has been experiencing difficulty in selling its sole product, IP-20 since March 2020 as a result of Covid-19 pandemic. Provided below the company's contribution format income statement for the most recent month: RM Sales (19,500 units x RM30 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 585,000 409,500 175,500 180,000 (4,500)
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- D ue to erratic sales of its sole product, a high capacity battery for laptop computers, Salcedo Company has been experiencing difficulty for some time. The company's income statement for the most recent month is given below: Sales (19,500 units @ P500) P9,750,000 Less variable expenses (7,995,000) Contribution margin 1,755,000 Less fixed expenses 1,800,000 Net loss P (45,000) The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by P7.50 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of P262,500?Exercise 6-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO6-1] Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 19.00 $ 12.00 Sales (7,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 226,300 138,700 87,600 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 54,500 $ 33,100 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the revised net operating income per month if the sales volume decreases by 100 units? 3. What would be the revised net operating income per month if the sales volume is 6,300 units?p.mheducation.com 05 6 Saved Help S Whirly Corporation's contribution format income statement for the most recent month is shown below Sales (7,800 units) Variable expenses Total $ 249,600 140,400 Per Unit $ 32.00 18.00 Contribution margin 109,200 $14.00 Fixed expenses 55,600 $ 53,600 Net operating income Required: (Consider each case independently). 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units? 1. Revised net operating income 2. Revised net operating income 3 Revised net operating income
- SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Question 5 The following information relates to ABC Ltd for the year ended 31 May 2015: Sales Variable costs Fixed costs REQUIRED: R450 000 (R270 000) (R110 000) Using the information above, determine the percentage (%) fall in sales that would need to occur before ABC Ltd starts incurring a loss. (Round off your answer to two (2) decimal places)Exercise 5-1 (Algo) The Effect of Changes in Sales Volume on Net Operating Income [LO5-1] Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,300 units) $ 240,900 $ 33.00 Variable expenses 131,400 18.00 Contribution margin 109,500 $ 15.00 Fixed expenses 54,800 Net operating income $ 54,700 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 6,300 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
- content/qualsims/accounting/cost_volume_profit/v2/player/#/891e73d6eefafa67438268e177eaa497_qualsimsaccountingcost_volume_profitmiller_nobles_mattis 75 Tumblers Sora per month Sales Revenue Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income Total Per Unit $ 2,250 $ 30 1,350 18 $ 900 $ 12 250 $ 650 In order to determine how much contribution margin is earned for each $1 of sales, what is the contribution margin ratio on your tumbler sales? Round to the nearest whole number. Select an option from the choices below and click Submit. ○ 29% ○ 40% ○ 250% Submit1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department believes increasing the West Division's monthly advertising by $24,000 will increase that division's sales by 11%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a contribution format income statement segmented by divisions. Division Central WestouTube Maps er 1 i 05 K ces Mc Graw MU Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below. Costs Selling: Advertising Sales salaries and commissions. Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: 9°F ain showers Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Planos, Incorporated, sold and delivered 62 planos. Required 1 Required 2 Cost Formula Required: 1. Prepare a traditional format Income statement for August. 2. Prepare a contribution format Income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin. $933 per month $4,790…
- UW98022 company's break-even-point in sales revenue is $880,000, and its variable expenses are 80% of sales. If the UW98022 company lost $38,000 last year, its sales must have amounted to: Multiple Choice $842,000 $690,000 $804.000 s006.000 ( Prev 9 of 12 Nest > tv 14NG SYSTEM (ACADEMIC) erial Accounting - Spring21 Time left 0:20:55 XYZ Co. has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and the weighted-average contribution margin is $100. How many units of product B must be sold to break-even? a. 4,000 b. 1,800. Oc. 800. O d. None of the answers is correct. Oe. 14,00. On the cost-volume-profit graph, the intersection between the sales line and the total cost line represents: O a. The loss area O b. The profit area F4 F5 F6 F7 F8 F9 F10 %23 24 * 4. 3. 6. 17 8 69 OOO OCProblem 5A-7 (Algo) Cost Behavior; High-Low Method; Contribution Format Income Statement [LO5-10] Morrisey & Brown, Limited, is the sole distributor of a product with growing sales. Its income statements for the three most recent months follow: Morrisey & Brown, Limited Income Statements For the Three Months Ended September 30 July Sales in units Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 4,750 $ 546,250 327,750 218,500 31,800 35,500 81,000 6,550 18,000 172,850 $ 45,650 August 5,250 $603,750 362,250 241,500 31,800 38,100 87,300 6,550 18,000 181,750 $ 59,750 September 5,750 $ 661,250 396,750 264,500 31,800 40,700 93,600 6,550 18,000 190,650 $ 73,850 Required: 1. By analyzing data from the company's income statements, classify each of its expenses (including cost of goods sold) as either…