South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (5,500 microwave ovens) $5,500,000 Cost of goods sold 962,500 Store manager's salary per year 150,000 Operating costs per year 220,000 Advertising and promotion per year 18,960 Commissions (3.2% of sales) 176,000 What was the variable cost per unit sold for 2017?

South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (5,500 microwave ovens) $5,500,000 Cost of goods sold 962,500 Store manager's salary per year 150,000 Operating costs per year 220,000 Advertising and promotion per year 18,960 Commissions (3.2% of sales) 176,000 What was the variable cost per unit sold for 2017?

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 26BEA

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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. The following data were collected from last year’s operations (revenues and costs in thousands of dollars). Store Revenues Costs 101 $4,220 $4,394 102 2,347 3,134 103 5,918 5,361 104 4,222 4,298 105 3,094 4,036 106 4,263 3,739 107 7,014 5,209 108 1,959 2,974 109 6,016 5,168 110 3,588 3,319 111 4,126 4,479 112 4,990 3,440 113 3,672 2,916 114 5,297 4,895 115 2,724 3,166 Required a. Use the high-low method to estimate the fixed and variable portions of store costs based on revenues. b. Managers estimate that one of the proposed stores will have revenues of $3.7 million. What are the estimated monthly overhead costs, assuming no…
Required information Skip to question [The following information applies to the questions displayed below.] Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. The following data were collected from last year’s operations (revenues and costs in thousands of dollars). Store Revenues Costs 101 $4,100 $4,214 102 2,227 2,894 103 5,738 5,181 104 3,982 3,998 105 2,914 3,676 106 4,023 3,319 107 6,894 5,029 108 1,779 2,374 109 5,416 4,688 110 3,228 2,959 111 3,886 4,179 112 4,690 3,200 113 3,552 2,556 114 4,817 4,655 115 2,124 2,986 Required: a. Use the high-low method to estimate the fixed and variable portions of store costs based on revenues.
3. M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (2,000 televisions) $2,000,000 Cost of goods sold 570,000 Store manager's salary per year 130,000 Operating costs per year 280,000 Advertising and promotion per year 32,000 Commissions (2.3% of sales) 46,000 What are the estimated total costs if the company expects to sell 3,300 units next year? A) $1,458,400 B) $2,803,700 C) $2,361,700 D) $517,900
Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. The following data were collected from last year’s operations (revenues and costs in thousands of dollars). Store Revenues Costs 101 $4,240 $4,424 102 2,367 3,174 103 5,948 5,391 104 4,262 4,348 105 3,124 4,096 106 4,303 3,809 107 7,034 5,239 108 1,989 3,074 109 6,116 5,248 110 3,648 3,379 111 4,166 4,529 112 5,040 3,480 113 3,692 2,976 114 5,377 4,935 115 2,824 3,196 Required a. Use the high-low method to estimate the fixed and variable portions of store costs based on revenues. b. Managers estimate that one of the proposed stores will have revenues of $3.9 million. What are the estimated monthly overhead costs, assuming no…
Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $420,000 on sales of $2,100,000. The company's average operating assets were $2,300,000 and its minimum required rate of return was 15%. Provide the missing data in the following table for a distributor of martial arts products: Note: Enter "Turnover" and "ROI" answers to 1 decimal place. Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) Alpha $ 364,000 8% 5.0 % Division Bravo $ 325,000 $52,000 % 40.0 % Charlie $66,900 15 % 30.0 %
Crane Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return (a) Retail Online Catalog Retail Stores LA $9,910,000 3,860,000 4,360,000 7,860,000 11% Internet Residual Income $3,860,000 1,410,000 910,000 3,860,000 11% Catalog Sales Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) $3,010,000 1,710,000 1,110,000 1,960,000 11%
Sunland Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return Retail Stores $9,758,800 3,935,000 4,750,332 7,870,000 12% Internet $3,570,000 1,360,000 930,155 3,570,000 12% Catalog Sales $3,870,000 1,820,000 1,829,410 1,935,000 12%
You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required information. You can assume 365 days in a year. a) Alpha Co. reported a cost of goods sold of $64,380.00 and an accounts payable balance of $16,700.00 last year. Compute the average time taken to pay suppliers. Discuss the significance of a longdays’ costs in payables for the firm. b) Bravo Ltd. equity multiplier is 1.93, its total asset turnover is 2.65, and its profit margin is 4.20 percent. Compute the Return on Equity (ROE). Explain the impact on ROE, should the total asset turnover decline next year. c) Charlie Inc. has a profit margin of 7.90 percent, a total asset turnover of 1.54, and a Return on Equity (ROE) of 13.47 percent. Solve for the debt-equity ratio. d) Delta GMBH’s ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is $964,000.00. Determine the return on assets (ROA).
GIGO Computers has two divisions that manufacture computing devices. Below are the results from last year. Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Laptop Tablet Total $ 14,500,000.00 $ 36,000,000.00 $ 50,500,000.00 $9,500,000.00 $ 23,400,000.00 $ 32,900,000.00 $ 1,400,000.00 $ 1,880,000.00 $ 3,280,000.00 3,600,000.00 $ 10,720,000.00 $ 14,320,000.00 1,850,000.00 $ 5,760,000.00 $ 7,610,000.00 840,000.00 $ 1,740,000.00 1,300,000.00 $ 2,500,000.00 2,820,000.00 $ 2,470,000.00 Variable Operating Expenses $ bed Operating Expenses $ Common Fixed Costs $ Operating Income -$ 900,000.00 $ 1,200,000.00 $ 350,000.00 $ G MED Meng Wanzhou, the President of GIGO is not happy that the laptop division is losing money. a) Prepare a segment margin income statement. Fixed cost of goods sold, and fixed operating expenses can be traced to each division. (6 marks) b) Should Meng keep or close the laptop division? (1 mark)
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $65,000 $164,000 $55,000 $284,000 Cost of goods sold 37,000 67,000 20,000 124,000 Contribution margin 28,000 97,000 35,000 160,000 Order and delivery processing 21,000 25,000 11,000 57,000 Rent (per sq. foot used) 5,000 4,000 4,000 13,000 Allocated corporate costs 10,000 10,000 10,000 30,000 Corporate profit…
Required Information [The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net income per dollar of sales? Profit Margin Choose Numerator: Average Invested Assets $16,600,000 12,600,000 I Choose Denominator: 1 Investment Center Electronics Sporting Goods Which department generates the most net income per dollar of sales?
Spike Industries had a bad year in 2021, experiencing an operating loss for the first time. The company experienced sales of $2,220,000 from selling 185,000 units. The cost data can be found below: Variable Fixed S = 2.220,000 625 2,358,750 195,000 Su = $2,220,000 -112 185,000 Cost of goods sold Selling expenses VC₁ = $1,332,000 Administrative expenses 185,000 7.2 Total $1,486,000 681,000 305,000 $2,268,000 еми $866,000 356,000 110,000 $1,332,000 For 2022, management is considering changing the compensation of the sales force from fixed annual 2,75 salaries (totaling $170,006) to total salaries of $50,000 plus a 6.25% commission on sales. - $416,000 325,000 195,000 $936,000 Round to two decimal places when needed. Requirement 1: If management adopts this change, what will be the company's new break-even point in units? Is this an increase or a decrease from their previous break-even point? BE u = FC $936,000 A95,000 (12-7.2 New BEU TC -($936,000 - 120,006) $815,994 - 201,480 сти $4.05…

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bartleby, a Learneo, Inc. business

Sales (5,500 microwave ovens)	$5,500,000
Cost of goods sold	962,500
Store manager's salary per year	150,000
Operating costs per year	220,000
Advertising and promotion per year	18,960
Commissions (3.2% of sales)	176,000