The GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales$900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs andexpenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.

The income statement talks about the profitability of the business for the current period. The…

Answered: The GAAP income statement for Pace…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please provide answer in text (Without image)
Whirly Corporation's contribution format Income statement for the most recent month is shown below: Sales (8,400 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 260,400 168,998 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 55, 188 Per Unit $ 31.08 11.09 1. What would be the revised net operating Income per month of the sales volume Increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,400 units?
Or The cost and revenue information of India Company for the last year (2022) is provided below: Sales units - 200 units, Selling price per unit - 1500 dollars, Number of units produced 200 units, DM - $850 per unit, DL - $115 per unit. Var MOH- $20 per unit. Fixed MOH- $45,000, Var Selling and Adm Exp = $15 per unit, Fixed S&A Exp = $15.000, A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of India Co.? D.) Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 10%.
Subject: accounting
1. The net income before tax that the company would disclose on an absorption-costing income statement is? 2. The contribution margin that the company would disclose on an absorption-costing income statement is?
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,200 units at $280 each) $ 3,136,000 Variable costs (11,200 units at $210 each) 2,352,000 Contribution margin 784,000 Fixed costs 567,000 Income $ 217,000 If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is.7,600 units?
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin $2,912,000 2,184,000 728,000 567,000 $ 161,000 Fixed costs Pretax income If the company raises its selling price to $300 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co's break-even point in sales dollars. 1. Contribution margin per unit 2. Contribution margin ratio 3. Break-even point units 4. Break-even sales dollars
The following data have been taken from the records of a company: Production in units during 2011 200,000 Units sold during 2011 190,000 Selling Price per unit P 15.00 Standard Variable Costs per unit Material and Labor P 8.00 Indirect Manufacturing Costs 2.00 Selling and Administrative expenses 1.00 Fixed Costs budgeting for the year Indirect Manufacturing Costs P 400,000 Selling & Administrative Expenses P 300,000 Required: A. Determine the income (loss) before income taxes for the year 2011 under Absorption Costing?
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 998,000 $ 49.90 Variable expenses 598,800 29.94 Contribution margin 399,200 19.96 Fixed expenses 321,200 16.06 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $508,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $109,000. (The…
CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
Selling price per unit -$17; Selling & administrative (fixed expense)- $130 000; Interest expense (fixed expense)- $10 000; COGS (variable expense) - $4; Selling or administrative (variable expense)- $3; What is the company's contribution margin?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

The GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.