FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. Refer to Figure 4-2. What is the contribution margin ratio? 67% 60% 40% 33% 50% Please avoid solutions in image format thankuarrow_forwardPlease help me. Thankyou.arrow_forward8 Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: 4 points eBook Sales CM ratio Fixed expenses total $583.500 per month. Flight Dynamic $ 710,000 63% Required 11 Required 2 Product Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $59,000 a month, by how much would monthly net operating income increase? Sales Variable expenses Contribution margin Fixed expenses Net operating income Sure Shot $ 290,000 75% Complete this question by entering your answers in the tabs below. Required 3 Total $ 1,000,000 Prepare a contribution format income statement for the company as a whole. Note: Round your percentage answers to 2 decimal places (1.e. 0.1234 should be entered as 12.34). Flight Dynamic Amountarrow_forward
- Essex Inc. had sales last year of $80,000, a contribution margin of $12,000 and net income of $3,000. The company sold 8,000 units last year. Based on this information, how many units does Essex need to sell to breakeven? 4,200 6,000 O 4,000 O 7,200 None of the abovearrow_forwardContribution Margin Ratio a. Young Company budgets sales of $900,000, fixed costs of $44,600, and variable costs of $198,000. What is the contribution margin ratio for Young Company? (Enter your answer as a whole number.)_________% b. If the contribution margin ratio for Martinez Company is 49%, sales were $757,000, and fixed costs were $255,940, what is the income from operations?$__________arrow_forwardCreswell Corporation's fixed monthly expenses are $26,000 and Its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating Income in a month when sales are $84,000? Multiple Choice O $7,600 $50,400 $24.400 $58.000arrow_forward
- solve the question pleasearrow_forward1. Mower Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $120 100% Variable Expenses $48 40% Contribution Margin $72 60% Fixed expenses are $567,000 per month. The company is currently selling 9,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $84,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 600 units. What should be the overall effect on the company's monthly net operating income of this change? A. Decrease of $146,400 B. Increase of $21,600 C. Increase of $77,400 D. Increase of $669,600arrow_forwardDhapaarrow_forward
- ces Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Fixed expenses total $183,750 per month. Flight Dynamic $ 150,000 Required 1 Product Required 2 Required 3 80% Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Break-even point in dollar sales Sure Shot $ 250,000 36% Complete this question by entering your answers in the tabs below. Total $ 400.000 > What is the company's break-even point in dollar sales based on the current sales mix? Note: Do not round intermediate calculations.arrow_forwardData concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit Percent of Change in net operating income 25% Fixed expenses are $1,051,000 per month. The company is currently selling 9,700 units per month. Required: The marketing manager would like to introduce sales commissions as an Incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $103,000 per month. The marketing manager predicts that Introducing this sales Incentive would Increase monthly sales by 470 units. What should be the overall effect on the company's monthly net operating Income of this change?arrow_forwardHow do you find the breakeven sales revenue from the picture below?arrow_forward
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