Ivanhoe Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 86,400 units of product: net sales $2,160,000; total costs and expenses $2,413,800; and net loss $253,800. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. 3. Management is considering the following independent alternatives for 2022. Break-even point $ 1. Variable $1,134,000 99,360 62,640 $2,413,800 $1,296,000 Total $1,693,440 558,360 Increase selling price 162,000 2. Change compensation Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $216,000 to total salaries of $43,200 plus a 5% commission on net sales. 3. Purchase machinery Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.) (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.) 2,794,500 $ $ $ Fixed $559,440 459,000 99,360 Break-even point $1,117,800 2149615 2700000 1588592

Flamengo Co is a sporting goods manufacturing. Last year, report the following Income Statement: Sales $620,000 Cost of goods sold 316,000 Gross margin $304,000 Selling and administrative expense 246,000 Operating income $ 58,000 Less: Income taxes (at 40%) 34,000 Net income $ 24,000 At the beginning of the year, the value of operating assets was $263,000. At the end of the year, the value of operating assets was $363,000. Flamengo Co. requires a minimum rate of return of 15%. Total capital employed equals $350,000 and the actual cost of capital is 6%, Calculate the Return on Investment. (Carry computations out to two decimal places.)

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? Required 2 2018 $ 105,000 62,500 42,500 36,500 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in…

Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages.   TannenhillCompany   ElectronicsIndustryAverage Sales $800,000     100 % Cost of goods sold 512,000     70   Gross profit $288,000     30 % Selling expenses $176,000     17 % Administrative expenses 64,000     7   Total operating expenses $240,000     24 % Operating income $48,000     6 % Other revenue 16,000     2     $64,000     8 % Other expense 8,000     1   Income before income tax $56,000     7 % Income tax expense 24,000     5   Net income $32,000     2 % a.  Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers.