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Nobel Company sells three products: X, Y, and Z. Budgeted sales by product and in total for the coming month are as follows: % of total sales Sales Variable expenses Contribution margin Fixed expense Operating income X = $195,000 Y = $435,000 Z = $120,000 Required: Product X 30% Product Y 50% Product Z 20% $225,000 100% 67,500 30% $157,500 70% $75,000 $375,000 100% $150,000 100% $750,000 100% 300,000 80% 82,500 55% 450,000 60% 20% $ 67,500 45% $300,000 40% As shown by these data, operating income is budgeted at $104,000 for the month. Assume that actual sales for the month total $750,000 as planned. Actual sales by product, however, are: essibility: Investigate Total 100% a) Calculate the break-even sales for the coming month, based on budgeted data. 196,000 $104,000 c) Calculate the break-even sales for the month, based on actual data. b) Prepare a contribution income statement for the month based on actual sales data. Assume variable expenses are a percentage of sales and total fixed expenses are the same as budgeted. Present the income statement in the same format as shown above. d) Explain why the company did not meet the budgeted operating income or break-even sales even though it met its $500,000 sales budget. | Focu

Nobel Company sells three products: X, Y, and Z. Budgeted sales by product and in total for the coming month are as follows: % of total sales Sales Variable expenses Contribution margin Fixed expense Operating income X = $195,000 Y = $435,000 Z = $120,000 Required: Product X 30% Product Y 50% Product Z 20% $225,000 100% 67,500 30% $157,500 70% $75,000 $375,000 100% $150,000 100% $750,000 100% 300,000 80% 82,500 55% 450,000 60% 20% $ 67,500 45% $300,000 40% As shown by these data, operating income is budgeted at $104,000 for the month. Assume that actual sales for the month total $750,000 as planned. Actual sales by product, however, are: essibility: Investigate Total 100% a) Calculate the break-even sales for the coming month, based on budgeted data. 196,000 $104,000 c) Calculate the break-even sales for the month, based on actual data. b) Prepare a contribution income statement for the month based on actual sales data. Assume variable expenses are a percentage of sales and total fixed expenses are the same as budgeted. Present the income statement in the same format as shown above. d) Explain why the company did not meet the budgeted operating income or break-even sales even though it met its $500,000 sales budget. | Focu

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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Nobel Company sells three products: X, Y, and Z. Budgeted sales by product and in total for the coming month are as follows: % of total sales Sales Variable expenses Contribution margin Fixed expense Operating income X = $195,000 Y = $435,000 Z = $120,000 Required: Product X 30% $225,000 100% 67,500 30% $157,500 70% $75,000 Product Y 50% Total Product Z 20% 100% $150,000 100% $750,000 100% 82,500 55% 450,000 20% $ 67,500 45% $300,000 60% 40% 196,000 $104,000 As shown by these data, operating income is budgeted at $104,000 for the month. Assume that actual sales for the month total $750,000 as planned. Actual sales by product, however, are: $375,000 100% 300,000 80% a) Calculate the break-even sales for the coming month, based on budgeted data. essibility: Investigate b) Prepare a contribution income statement for the month based on actual sales data. Assume variable expenses are a percentage of sales and total fixed expenses are the same as budgeted. Present the income statement in the same format as shown above. c) Calculate the break-even sales for the month, based on actual data. d) Explain why the company did not meet the budgeted operating income or break-even sales even though it met its $500,000 sales budget. | Focu
Transcribed Image Text:Nobel Company sells three products: X, Y, and Z. Budgeted sales by product and in total for the coming month are as follows: % of total sales Sales Variable expenses Contribution margin Fixed expense Operating income X = $195,000 Y = $435,000 Z = $120,000 Required: Product X 30% $225,000 100% 67,500 30% $157,500 70% $75,000 Product Y 50% Total Product Z 20% 100% $150,000 100% $750,000 100% 82,500 55% 450,000 20% $ 67,500 45% $300,000 60% 40% 196,000 $104,000 As shown by these data, operating income is budgeted at $104,000 for the month. Assume that actual sales for the month total $750,000 as planned. Actual sales by product, however, are: $375,000 100% 300,000 80% a) Calculate the break-even sales for the coming month, based on budgeted data. essibility: Investigate b) Prepare a contribution income statement for the month based on actual sales data. Assume variable expenses are a percentage of sales and total fixed expenses are the same as budgeted. Present the income statement in the same format as shown above. c) Calculate the break-even sales for the month, based on actual data. d) Explain why the company did not meet the budgeted operating income or break-even sales even though it met its $500,000 sales budget. | Focu
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