laxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single anufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for e two products: Conquistador Hurricane les price $4,200 $2,600 riable cost of goods sold (2,650) (1,740) anufacturing margin $1,550 $860 riable selling expenses (794) (444) ntribution margin $756 $416 ced expenses (360) (170) erating income $396 $246 addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane les unit volume 2,800 2,100 Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product

laxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single anufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for e two products: Conquistador Hurricane les price $4,200 $2,600 riable cost of goods sold (2,650) (1,740) anufacturing margin $1,550 $860 riable selling expenses (794) (444) ntribution margin $756 $416 ced expenses (360) (170) erating income $396 $246 addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane les unit volume 2,800 2,100 Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4PB: Salespersons report and analysis Pachec Inc. employs seven salespersons to sell and distribute its...

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Fanning Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) FANNING COMPANY Income Statements for Year 2 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost Items for Segment A Effect on income $ Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. A $ 169,000 (123,000) (20,000) 26,000 (37,000) (5,000) $ (16,000) 0 B $242,000 (92,000) (32,000) 118,000 (35,000) (19,000) $ 64,000 с $ 262,000…
Adohai Berhad has 8 units or segments based on product-wise. Each unit deals with different products. The revenue, profits, and the assets of each unit are as shown below:a. Based on IFRS criteria, which units are to be reported as per segmental reporting?Show your calculation for each item and each unit.b. Rank the contribution of each unit to total assets, total revenue and total profit respectively. Which segment should be focused by this company? Justify.
a. Present a cost-profit-volume analysis that shows the effect of adding the $8,500 annual premium to the company's fixed costs by showing current and revised CVP Income Statements. Include a column to the right of each income statement where each line item is expressed as a percentage of sales (called a common size income statement). b. Visualize the changes to net income in a chart. c. Advise the company using your quantitative support and qualitative. reasoning as to whether the company should purchase the insurance. A-Float Pools Company Income Statement (Pools Maintenance Div.) For the Year Ended December 31, 2022 In Sales (2,000 clients) Cost of Services Gross profit Operating expenses Selling Administrative Net Income $165,000 $225,000 $1,100,000 627,000 $473,000 $390,000 $83.000
Refer to the information for Jasper Company on the previous page.Required:1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for eachline item on the income statement. (Note: Round percentages to the nearest tenth of a percent.)2. CONCEPTUAL CONNECTION Briefly explain how a manager could use the incomestatement created for Requirement 1 to better control costs.
1. How would a product life-cycle income statement differ from the above income statements? 2. Prepare a three-year life-cycle income statement for both products. Which product appears to be more profitable and why? 3. Prepare a schedule showing each cost category as a percentage of total annual costs. What do you think this indicates about the profitability of each product over the three-year life cycle?
Salespersons report and analysis Pachec Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended June 30 are as follows: Instructions 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. 2. Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.
Analyzing profitability analysis, service company Burlington Internet Services is an Internet service provider for commercial and residential Customers. The company provided the following data for its two types of customers for the month of August: For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to twos decimal places. Which type of service and more profitable?
Analyzing profitability Camden Company has divided its business into segments based on sales territories: East Coast, Midland, and West Coast. Following are financial data for 2018: Prepare an income statement for Camden Company for 2018 using the contribution margin format assuming total fixed costs for the company Were $435,000. Include columns for each business segment and a column for the total company.
Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 $1.33 Direct labor per T-shirt Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.
Munoz Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions MUNOZ COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Complete this question by entering your answers in the tabs below. A $ 171,000 (123,000) Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A $251,000 $256,000 (91,000) (81,000) (24,000) (23,000) 152,000 (40,000) 0 136,000 (17,000) 31,000 (34,000) (42,000) (6,000) (16,000) $ (9,000) $ 78,000 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment…
The following is a financial information from MayPagAsaPa Company: Additional information:The company purchase office supplies from big manufacturers and distributes among different segments. Cost of goods sold and shipping expenses are both variable. 1.Prepare a new contribution format segmented income statement. 2.Analyze your requirement #1. What points that might help to improve the company’s performance would you bring to management’s attention? 3.Compare your output with Requirement 1 with the information above. List the items you think that is an error/disadvantage/weakness of the given data.