Exercise 6-8 Compute the Margin of Safety [LO6-7]Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:Selling price per unitariable expense per unitFixed expense per monthUnit sales per month272$14$ 11,1801,010Required:1. What is the company's margin of safety? (Do not round intermediate calculations.)2 What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e.0.1234 should be entered as 12.34).)1. Margin of safety (in dollars)2. Margin of safety percentage

Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Answered: Exercise 6-8 Compute the Margin of…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 1 pounds of carbon fiber. Management reports that 6,500 snowboards and 7,500 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 165,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,000 snowboards and 5,500 pounds of carbon fiber in inventory. Carbon fiber costs $14 per pound. Each snowboard requires 0.5 hour of direct labor at $19 per hour. Variable overhead is budgeted at the rate of $9 per direct labor hour. The company budgets fixed overhead of $1,797,000 for the quarter. Problem 20-1A (Algo) Part 4 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Direct labor hours needed Budgeted…
CHAPTER 11 PRODUCT PRICING AND PROFIT ANALYSIS 558 41. Casablanca, Inc., has a practical production capacity of two million units, the current year's budget was based on the production and sales of 1.4 million units during the cur- rent year. Actual statistics came out to be: production of 1.44 million units and sales of 1.2 million.. Selling price is at P20 each and the contribution margin ratio is 30%. The peso value that best quantifies the marketing division's failure to achieve budgeted performance for the current year is P4,800,000 unfavorable b. P4,000,000 unfavorable а. P1,440,000 unfavorable d. P1,200,000 unfavorable С. (грера) 42. The differences between the master budget amounts and the amounts in the flexible budget are due to Activity level variances. b. Gaps in affectivity. a. с. Favorable variances. d. Unfavorable variances. (грсра)
Problem 2 The manager of the Spartan Land Restaurant is developing the operating budget for next vear using the following financial information from the current year: Current Year's Next Year's Percentage Increase (Decrease) Next Year's Amount ($) Item Amount Food revenue 00$973,000 4% $112,500 2% Beverage revenue Food cost 000. 36% 1% Beverage cost Labor (including benefits) Other operating costs 23% d ate (1%) $298,000 (2%) 16% same Encar Fixed costs $70,000 same a. What is the current year's budgeted profit (loss)? b. Develop next year's budget: indicate the profit (loss).
Question 14 ( If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative
H5. Account
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Problem 8-44 (Algo) Cost Estimation; High-Low Method [LO 8-3] Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year. For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity. Required: Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5°F; temperatures in February are expected to average 40°F.
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PA33-6 Preparing Operating Budgets for a Merchandising Firm Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: LO33-5 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter's sales demand. • Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales 0-6689 revenue. Required: Prepare the following operating budgets for quarters 1, 2, and 3. (You do not have enough information to complete quarter 4.) 1. Sales budget. 2. Merchandise purchases budget. 3. Cost of goods sold budget. 4. Selling and administrative expense budget. 5. Budgeted income statement.
t ces Exercise 6-5 (Algo) Compute the Margin of Safety [LO6-5] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month Required: 1. What is the company's margin of safety? $ 24 $ 16 $ 7,200 1,050 Note: Do not round intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %
Exercise 8-8 (Static) Budgeted Income Statement [LO8-9] Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 460 $1,950 $ 1,575 $75 $ 105,000 $ 14,000 4

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