The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work..

The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work..

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following information for a merchandising company: Number of units sold 20,000 Selling price per unit Variable selling expense per unit Variable administrative expense per unit Fixed administrative expenses $ 30 $3.40 Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $ 2.40 $ 50,000 $24,000 $ 19,000 $340, 000 What is the contribution margin?
The MER-92566 merchandising company reported the following information for last year: Amount $. 1,312,000 $ 410 $ 46 $ 18 $ 150,000 $ 105,000 $ 75,000 $ 115,000 $310,000 Sales Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases The MER-92566 company's contribution margin per unit is closest to: (Carry out your calculations up to 2 decimal places) O $392 O $346 O $262 O $364
The most recent monthly income statement for Your Company 1s given below: total store 1 store 2 Sales $2,100,000 $1,300,000 $800,000 VC $1,260,000 $882,000 $378,000 CM $840,000 $418,000 $422,000 Traceable fixed costs $420,000 $231,000 $189,000 Segment margin $420,000 $187,000 $233,000 Common fixed costs $350,000 $210,000 $140,000 $70,000 ($23,000) $93,000 NI Your Company is considering closing Store I. If Store I is closed, one-fourth of its traceable fixed expenses would continue to be incurred. Also, the closing of Store I would result in a 20% decrease in sales in Store II. Your Company allocates common fixed expenses on the basis of sales dollars and none of these costs would be saved if a store were shut down. What is the increase or (decrease) in the net income if Store I is closed? enter an increase as a positive number and a decrease as a negative number.
Find the gross margin as a percentage amount. Gross Sales $230,000 Customer Returns and Allowances $17,000 Opening inventory at cost $46,000 Billed cost of goods $118,000 Inward transportation $5,400 Cash Discount $6,400 Closing inventory at cost $37,000 Payroll $48,300 * Occupancy $34,000 Wrapping and packing $1.450 Utilities $3,000 Delivery $2.960 Your Answer:
Assume the following information for a merchandising company: Number of units sold 20,000Selling price per unit $ 30Variable selling expense per unit $ 3.6Variable administrative expense per unit $ 2.6Fixed administrative expenses $ 50,000Beginning merchandise inventory $ 24,000Ending merchandise inventory $ 19,000Merchandise purchases $ 340,000 What is the contribution margin?
1. Bulk Wholesalers took in $378,800 in sales during July. They started the month with inventory worth $173,800 and spent $292,900 on new purchases during the month. Gross margin on sales was 76%. Using the gross profit method, estimate the cost value of the inventory at the end of July. A. $90,912 B. $292,900 C. $375,788 D. $466,700 2.Find the entry you would make on an income statement for TOTAL OPERATING EXPENSES for the year ended December 31, 2007: Gross Sales, $161,000; Sales Returns and Allowances, $9,600; Sales Discounts, $15,600; Merchandise Inventory, January 1, 2011, $52,500; Merchandise Inventory, December 31, 2011, $62,500; Net Purchases, $84,300; Freight In, $3,000; Salaries, $94,300; Rent, $29,800; Utilities, $2,245; Insurance, $3,250; and Income Tax, $19,100. A. $58,500 B. $77,300 C. $129,595 D. $135,800
Assume the following information for a merchandising company: Number of units sold Selling price per unit. Variable selling expense per unit Variable administrative expense per unit Fixed administrative expenses Beginning merchandise inventory Ending merchandise inventory Merchandise purchases What is the amount of total variable expenses? 20,700 $ 30 $ 3 $2 $ 50,000 $ 24,000 $ 19,000 $ 341,000
5. Pong Incorporated's income statement for the most recent month is given below. Total Store G Store H $150,000 60,000 90,000 60,000 30,000 15,000 $ 15,000 $90,000 Sales. Variable expenses.. Contribution margin. Traceable fixed expenses Segment margin.. Common Fix ed expenses... Net operating income $60,000 30,000 30,000 15,000 $15,000 30,000 60,000 45,000 $15,000 ............... If Store G sales increase by $40,000 with no change in fixed costs, the overall company net operating income should: A. increase by $8,000 B. increase by $24,000 C. increase by $20,000 D. increase by $4,000
Problem 1. Better Man Company reported the following information on its income statement for the first quarter of the year. January Php 375,000 32,000 12,000 March Eebruary Php 750,000 Sales Sales Returns & Allowances Sales Discounts Net Sales Php 25,000 15,000 9,000 736,000 255,000 Cost of Sales Gross Profit 620,000 185,000 310,000 Required: Calculate the missing information.
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income Multiple Choice $ 101,000 106,000 $190,000 $ 900,000 635,000 265,000 On average, a book sells for $60. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: 207,000 $ 58,000
Using the information below, calculate gross profit for the period. Sales $1,264,000 Selling expenses 235,000 Finished Goods Inventory, beginning 35,600 Finished Goods Inventory, ending 40,600 Cost of goods manufactured 520,000 $749,000. $515,000. $754,000. $432,800. $510,000.
The following totals appear in the day books for March 20X8. $ Sales day book 40,000 Purchases day book 20,000 Returns inwards day book 2,000 Returns outward day book 4,000 Opening and closing inventories are both $3,000. What is the gross profit for March 20X8? A $22,000 B $24,000 C $20,000 D $18,000