Great ​Bubbles, Inc. produces multicolored bubble solution used for weddings and other events. The company sold 70,000 bubble kits during August​, and its actual operating income was as​ follows:   Data table:   Great Bubbles, Inc. Income Statement Month Ended August 31 Sales revenue. . . . . . . . . . . . . . . . $214,500 Variable expenses:   Cost of goods sold. . . . . $84,100 Sales commissions. . . . 19,000 Utility expense. . . . . . . . 10,500 Fixed expenses:   Salary expense. . . . . . . 35,100 Depreciation expense. . . 18,000 Rent expense. . . . . . . . . 8,850 Utility expense. . . . . . . . 6,000 Total expenses. . . . . . . . . . . . . . . $181,550 Operating income. . . . . . . . . . . . . $32,950   The​ company's flexible budget income statement for August follows: Data table:   Great Bubbles, Inc. Flexible Budget Income Statement Month Ended August 31     Flexible           Budget           per Output           Unit Output Units (Kits)       65,000 70,000 75,000   Sales revenue $2.95 $191,750 $206,500 $221,250   Variable expenses:           Cost of goods sold 1.20 78,000 84,000 90,000   Sales commissions 0.25 16,250 17,500 18,750   Utility expense 0.15 9,750 10,500 11,250   Fixed expenses:           Salary expense   33,000 33,000 36,300   Depreciation expense   18,000 18,000 20,700   Rent expense   9,000 9,000 13,000   Utility expense   6,000 6,000 6,000   Total expenses   $170,000 $178,000 $196,000   Operating income   $21,750 $28,500 $25,250   Requirements:   1. Prepare an income statement performance report for August.​Note: The master budget was based on expected sales volume of 65,000 bubble kits. 2. What accounts for most of the difference between actual operating income and master budget operating​ income? 3. What is Great​ Bubbles' master budget variance for operating​ income? Explain why the income statement performance report provides Great Bubbles' managers with more useful information than the simple master budget variance. What insights can Great Bubbles' managers draw from this performance​ report?

The annual data that follows pertain to See It​, a manufacturer of swimming goggles​ (the company had no beginning​ inventory): Sales price. . . . . . . . . . . . . . . . . . . . . . . . . $49 Variable manufacturing expense per unit. . $17 Sales commission expense per unit. . . . . . $9 Fixed manufacturing overhead. . . . . . . . . . $1,980,000 Fixed operating expenses. . . . . . . . . . . . . . $245,000 Number of goggles produced. . . . . . . . . . . 220,000 Number of goggles sold. . . . . . . . . . . . . . . 200,000   Requirements:  1. Prepare both conventional​ (absorption costing) and contribution margin​ (variable costing) income statements for See It for the year.                                                                                               2. Which statement shows the higher operating​ income? Why? 3. The company marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 220,000 goggles. Should the company…

Hill & Scott Company makes financial calculators. During the current year, Hill & Scott manufactured 106,700 financial calculators. Finished goods inventory had the following units on hand: January 1 1,386 units December 31 1,144 units How many financial calculators did Hill & Scott sell during the year? Group of answer choices

For February, sales revenue is $610,000, sales commissions are 7% of sales, the sales manager's salary is $91,600, advertising expenses are $92,700, shipping expenses total 3% of sale, and miscellaneous selling expenses are $2,200 plus 1/2 of 1% of sales. Total selling expenses for the month of February are a.$247,500 b.$250,550 c.$186,500 d.$229,200

For February, sales revenue is $620,000, sales commissions are 6% of sales, the sales manager's salary is $80,300, advertising expenses are $80,200, shipping expenses total 2% of sale, and miscellaneous selling expenses are $2,700 plus 1/2 of 1% of sales. Total selling expenses for the month of February are O $212,800 O b. $200,400 O c. $215,900 Od $163,200

The following is the year ended data for Tiger​ Company:   Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900   What is the gross​ profit?   A. $22,100   B. $38,100   C. $19,200   D.

Lawrence Corporation sells two ceiling fans, Deluxe and Basic. Current sales total 60,000 units, consist-ing of 39,000 Deluxe units and 21,000 Basic units. Selling price and variable cost information follow. (c). Commissions, total: $535,600                                                                          Deluxe  Basic Selling price ....................................................................$86........$74              variable cost.......................................................................65........  41 Salespeople currently receive flat salaries that total $400,000. Management is contemplating a change to a compensation plan that is based on commissions in an effort to boost the company’s presence in the marketplace. Two plans are under consideration: Plan A:10% commission computed on gross dollar sales. Deluxe sales are expected to total 45,500 units; Basic sales are anticipated to be 19,500 units. Plan B:30% commission computed on the basis of production…

Lakeshore Manufacturing provided the following information for the month ended March 31: Sales Revenue $31,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 8,500 Cost of Goods Manufactured 11,600 Compute gross profit. OA. $19,400 OB. $17,900 OC. $10,900 O D. $20,900 ***

In the month of July, a convenience store had total sales of $118,000 from its gas pumps and other in-store products. If HST is 17% of sales, how much HST was collected on the in-store products if these sales represent 31% of total sales? (Round your answer to 2 decimal places.) HST collected on in-store products