Filmore Enterprises reports the year-end information from December 31, 2023 as follows: Sales (90,000 units) $1,170,000 Cost of goods sold $409,500 Gross margin $760,500 Operating expenses $620,100 Operating income $140,400 Filmore Enterprises is developing the next twelve- month budget. In January 2024, the company would like to increase selling prices by 3%. As a result, it is expected there will be a decrease in sales volume of 7%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. What is the budgeted operating income for the year? Budgeted Sales $Answer Budgeted cost of goods sold $Answer Budgeted gross margin $Answer Operating expenses $Answer Budgeted operating income $Answer

Filmore Enterprises reports the year-end information from December 31, 2023 as follows: Sales (90,000 units) $1,170,000 Cost of goods sold $409,500 Gross margin $760,500 Operating expenses $620,100 Operating income $140,400 Filmore Enterprises is developing the next twelve- month budget. In January 2024, the company would like to increase selling prices by 3%. As a result, it is expected there will be a decrease in sales volume of 7%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. What is the budgeted operating income for the year? Budgeted Sales $Answer Budgeted cost of goods sold $Answer Budgeted gross margin $Answer Operating expenses $Answer Budgeted operating income $Answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...

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Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?
Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
Advanced Enterprises reports year- end information from 2018 as follows: Sales (161,250 units) $967,000 Cost of goods sold 645,000 Gross margin 322,000 Operating expenses Operating income 265,000 S57,000 Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 13.5%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that cost of goods soid is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 2019? O A. $709.500 OB. $580.500 OC. $732,075 O D. $645,000
Violet Sales Corp, reports the year-end information from 2023 as follows: Sales (35,500 units) $284,000 Cost of goods sold 105,000 Gross margin 179,000 Operating expenses 152,000 Operating income $27,000 Violet is developing the 2024 budget. In 2024 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2024?
Kramer Enterprises reports year-end information from 2022 as follows: Sales (160,000 units) $960,000 Cost of goods sold 640,000 Gross margin 320,000 Operating expenses 260,000 Operating income $60,000 Kramer is developing the 2023 budget. In 2023 the company would like to increase selling prices by 8%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. What is budgeted sales for 2023? A) $1,036,800 B) $1,066,666 C) $933,120 D) $864,000
Violet Sales Corp, reports the year-end information from 2019 as follows: Sales (35,500 units) $284,000 Cost of goods sold 105,000 Gross margin 179,000 Operating expenses 152,000 Operating income $27,000 Violet is developing the 2019 budget. In 2019 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2019? (Round interim calculations to the nearest cent and the final answer to the nearest dollar.) Question 8 options: $335,092 $293,940 $252,788 $284,001
Mungus Coffee has recently recruited you to assist them with the financial aspect of their business. One component of your job is prepare budgets. The Income Statement for last year is presented below and you are required to create a Proforma Income Statement for July 31st 2021 using the fixed variable method. The company expects Sales to increase by 5%. Mungus Coffee Income Statement For the period July 31st 2020 Sales 126,000 Less Cost of Goods Sold 54,000 (variable) Gross Profit 72,000 Less Operating Expenses: Marketing Expense 28,400 (6000 variable and 22,400 fixed) General and Admin. Expense 8,600 (3000 variable and 5,600 fixed) Total Operting Expense 37,000 Operating Income 35,000 Less Interest Expense 1,800 (fixed)…
Jenny Inc. has the following projected costs for the second quarter of 20YY: Projected Costs Expenses April May June Selling and marketing expenses (i) $200,000 $250,000 $300,000 Office insurance expense (ii) 800 800 800 Office depreciation expense 500 500 500 Property tax expense (iii) 700 700 700 Jenny’s payment policy for selling and administrative expenses is as follows: Of the selling and marketing expenses, 50% is paid in the month they are incurred; the remaining 50% to be paid in the following month. The selling and admin expense payable at the end of March was $70,000, which represents 50% of March’s selling expenses. Insurance expense is $800 a month; however, the insurance is paid quarterly in the first month of each quarter, (i.e., in January, April, July, and October). Property taxes are paid once a year in December. The projected total selling and admin expenses for April are: Group of answer choices None of the above $172,400 $202,000 $204,400
BBB Company reported the results from sales of 5,000 units of Product Y for April 2022. See image.Assume that BBB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to maintain an operating income of P20,000?
BELOW IS THE INCOME STATEMENT FOR NEW COMPANY FOR JANUARY 2020 SALES PER UNIT $75 SALES VOLUME 185000 $13,875,000 COSTS COST OF GOODS SOLD 8,960,250 MARKETING AND ADMIN (FIXED) 1,500,000 TOTAL COSTS 10,460,250 OPERATING PROFIT 3,414,750 TAXES 1,126,868 2,287,882 0.33 PROFIT AFTER TAXES PREPARE A BUDGET FOR FEBRUARY TAKING INTO ACCOUNT THE FOLLOWING SALES VOLUME WILL INCREASE 30 PERCENT UNIT SALE VALUE WILL DECREASE 5 PERCENT COST OF GOODS SOLD WILL INCREASE LIKE SALES MARKETING AND ADMIN WILL DECREASE 6 PERCENT TAX RATE WILL INCREASE 3 PERCENTAGE POINTS
JoAnn Manufacturing has projected the following sales for the coming year: Sales $25,847.50 C$25,182.50 $22,604.17 Q1 $23,560.83 Q2 $ 54,750 $ 61,850 Q3 The company places orders each quarter that are 35 percent of the following quarter's sales and has a 30-day payables period. What is the payment of accounts for the third quarter? $70,050 Q4 $75,750
Remar, Inc. reported the following results from sales of 5,000 units of Product C for the month of June 2019 (refer to the attached picture): Assume that Remar, Inc. increases the selling price of Product C by 10% on July 1, 2019. How many units of Product C would have to be sold in July 2019 in order to generate an operating income of P20,000? sales 200,000 variable cost 120,000 fixed cost 60,000 operating income 20,000