Required Information Exercise 3-31 and 3-32 (Static) (LO 3-1) [The following information applies to the questions displayed below.) Warner Clothing is considering the Introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. %24 Sales price Variable costs Fixed costs 15 per unit 3 per unit 42,000 per month Exercise 3-31 (Static) Basic Decision Analysis Using CVP (LO 3-1) Required: a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make an operating profit of $30,000? a. Break-even sales in units Number of units to be sold

Lowes Farm Supply paid $73 for a large bag of fertilizer. Expenses are 13% of cost and the profit is 21% of cost. Round the answers to the nearest cent if necessary. 1) What is the regular selling price? 2) To help clear inventory, the fertilizer was sold at break-even during a sale. What is the break-even selling price?

Reveen Products sells camping Equipment. One of the company'sproducts a camping lantern, sells for $ 90 a unit. Variableexpenses are $ 63 per lantern, and fixed expenses associated withthe lantern total $ 135,000. per month. Required: A: compute the company's break even point in number of lanternsand in number of lanterns and in total sales dollars. B: If the variable expenses per lantern increase as a percentageof the selling price, will it result in a higher or lower breakeven point? Why? (Assume that the fixed expenses remainunchanged) C: At present the company is selling 8,000 per month. The salesmanager is convinced that a 10% reduction in the selling price willresult in a 25% increase in the number of lanterns sold each month.Prepare two contribution income statements, one under presentoperating conditions and one as operations would appear after theproposed changes. Sho both total and per unit data on yourstatements and determine if the proposed changes will be beneficialto…

Using the data from the attached picture, compute for the following:  1. If 5,000 units are sold, what will be the store’s operating income (loss)?2. If sales commissions are discontinued and fixed salaries are raised by a total of₱810,000, what would be the annual breakeven point in (a) units sold and (b) revenues?3. Refer to the original data. If in addition to his fixed salary, the store manager is paida commission of ₱30 per unit in excess of the break-even point, what would be the store’s operating income if 10,000 units were sold.

bed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning services

Flora’s Flats produces comfortable and portable women’s shoes designed to be worn as a second pair of shoes after a formal event.  The company has the following financial information:    The company’s sales price is $20 per unit.  The variable costs of producing flats is $6 per unit.  The company expects to have fixed costs of $10,000 next year.  The company expects to sell 1,000 pairs of flats next year.  Assume no taxes a. Prepare a budgeted contribution format income statement. b. Compute the margin of safety in both dollar and percentage terms. c. Compute the degree of operating leverage. d. If sales increase by 20% in the following year, how much would net income increase (use the degree of operating leverage to compute your answer).

Robert's Repair Shop has a monthly target profit of $19,500. Variable costs are 75% of sales, and monthly fixed costs are $13,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? ... Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Robert's Repair Shop's monthly margin of safety in dollars. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars

Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $15,000 for sales support should be assigned to the individual customers from the information given as follows: Multiple Choice Units purchased Purchase orders (annually) What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses purchases orders to compute activity-based costs? $3,000 $6,000 $9,000 Customer A 200,000 $12,000 Customer B 300,000 32 8

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In an attempt to improve the company's profit performance, management is considering a number of alternative actions.Instructions:Determine the effect of each of the following on monthly profits. Each situation is to beevaluated independently of all others.1.Reduce the unit selling price by P2 per unit. Action will increase monthly sales by20,000 units. Fixed factory overhead will increase by P16,000.