The budgets of four companies yield the following information (Click the icon to view the budget information for the four companies) Read the requirements Requirement 1. Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent. U Requirements 1. Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point? Net Sales Revenue Baker 1,320,000 Data table Print Done Variable Costs Fixed Costs Operating Income (Loss) $ 207,000 Company Units Sold 200,000 Baker Carey Doren Everest Contribution Margin per Unit $ 3.30 Net Sales Revenue $ 1,320,000 $ (d) $ 1,750,000 $ (j) Contribution Margin Ratio: % Variable Costs (a) 65,625 1,400,000 156,000 Fixed Costs (b) 200,000 118,000 (k) Operating Income (Loss) Units Sold $ 207,000 200,000 $ (e) 12,500 $ (9) $ 88,000 Contribution Margin per Unit S Contribution Margin Ratio 3.30 $ (1) S (h) 70.00 $ (1) 16.00 (c) 80% (0) 40%

The budgets of four companies yield the following information (Click the icon to view the budget information for the four companies) Read the requirements Requirement 1. Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent. U Requirements 1. Fill in the blanks for each missing value (Round the contribution margin per unit to the nearest cent) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point? Net Sales Revenue Baker 1,320,000 Data table Print Done Variable Costs Fixed Costs Operating Income (Loss) $ 207,000 Company Units Sold 200,000 Baker Carey Doren Everest Contribution Margin per Unit $ 3.30 Net Sales Revenue $ 1,320,000 $ (d) $ 1,750,000 $ (j) Contribution Margin Ratio: % Variable Costs (a) 65,625 1,400,000 156,000 Fixed Costs (b) 200,000 118,000 (k) Operating Income (Loss) Units Sold $ 207,000 200,000 $ (e) 12,500 $ (9) $ 88,000 Contribution Margin per Unit S Contribution Margin Ratio 3.30 $ (1) S (h) 70.00 $ (1) 16.00 (c) 80% (0) 40%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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Calculating cost-volume-profit elements The budgets of four companies yield the following information: Requirements Fill in me blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?
Which approach is most likely to result in employee buy-in to the budget? A. top-down approach B. bottom-up approach C. total participation approach D. basing the budget on the prior year
Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
Review the completed master budget and answer the following questions: Is Ranger Industries expecting to earn a profit during the next quarter? If so, how much? Does the company need to borrow cash during the quarter? Can it make any repayments? Explain. (Carefully review rows 74 through 80.)
Friendly Bank is attempting to determine the cost behavior of its small business lending operations. One of the major activities is the application activity. Two possible activity drivers have been mentioned: application hours (number of hours to complete the application) and number of applications. The bank controller has accumulated the following data for the setup activity: Required: 1. Estimate a regression equation with application hours as the activity driver and the only independent variable. If the bank forecasts 2,600 application hours for the next month, what will be the budgeted application cost? 2. Estimate a regression equation with number of applications as the activity driver and the only independent variable. If the bank forecasts 80 applications for the next month, what will be the budgeted application cost? 3. Which of the two regression equations do you think does a better job of predicting application costs? Explain. 4. Run a multiple regression to determine the cost equation using both activity drivers. What are the budgeted application costs for 2,600 application hours and 80 applications?
Please show how (step-by-step) you get the numbers for each account in the Flexible budget column. Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Planning Budget Variances Customers served........................................ 24,000 25,000 Revenue ($3.60q)......................................... $85,700 $90,000 $4,300 U Expenses: Wages and salaries ($22,200 + $1.20q)...... 48,900 52,200 3,300 F Supplies ($0.50q)...................................... 13,000 12,500 500 U Insurance ($5,700)..................................... 5,600 5,700 100 F Miscellaneous expense ($4,500 +…
Refer to the information regarding Stillwater Designs above.Required:1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales byproduct and in total for each time period.2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you've been asked to do some what-if analyses. Following is the budgeted Information regarding the coming year: Selling price per unit Variable cost per unit Fixed costs (per year) Required: $ 100.00 60.00 1,113,040 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal of the company is to earn a pretax (operating) profit of $316,000 for the coming year. How many units would the company have to sell to achieve this goal? 3. Assume that of the $60 variable cost per unit the labor-cost component is $27. Current negotiations with the employees of the company indicate some uncertainty regarding the labor cost component of the variable cost figure presented above. What is the effect on the breakeven point in units if selling price and fixed costs are as planned, but the labor cost for the coming year is…
Crystal Mining has completed the following data to analyze utility cost:MonthMachine Hours Utility CostJanuary200P 300February325440March400480April410490May525620June680790July820840August900900Required:1.Use the least squaresmethod to develop a formula for budgeting utility cost. (Round off value of b to two decimal places and the value of a to nearest peso.2.Prepare flexible budget with separate variable and fixed categories for utility costs at 350, 500, and 600 machine hours.
e. Production, Sales, Income Statement Clear my choice Which of the following statements is false? Select one: Oa. The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit. Ob. The master budget consists of a number of separate but interdependent budgets. Oc.A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. O d. The direct labor budget begins with the required production in units from the production budget. Oe. Control involves developing goals and preparing various budgets to achieve those goals. Next page Tables- Jump to.. e to seardh
Which one of the following budget is not affected when credit period to customers is changed from 30 days to 90 days to achieve 30% inrease in sales? A. Capital budget B. Production Budget C. Cash Budgets D. Sales Budge
Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 1: Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost. Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 28,000 hours of services in Year 1. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $57 per hour, the firm can achieve 31,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm…