I need answer of last three questionI need answer of last three questionI need answer of last three question please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Requirements1. What is Ullie's current operating income? (Prepare a contribution margin formatincome statement.)2. What is Ullie's contribution margin ratio?3. What is Ullie's break-even point in sales dollars? (Hint: The contribution marginratio calculated in requirement 2 is already weighted by Ullie's actualsales mix.)4. Ullie's top management is deciding whether to embark on a $240,000advertising campaign. The marketing firm has projected annual sales volume toincrease by 15% as a result of this campaign. Assuming that the projectionsare correct, what effect would this advertising campaign have on Ullie's annualoperating income? Ullie's Sporting Goods is a retailer of sporting equipment. Last year, Ullie's sales revenues totalled $5,300,000. Totalexpenses were $2,200,000. Of this amount, approximately $1,260,000 were variable, while the remainder were fixed.Since Ullie's Sporting Goods offers thousands of different products, its managers prefer to calculate the break-even pointin terms of sales dollars rather than units.RequirementsRequirement 1. What is Ullie's Sporting Goods' current operating income? (Prepare a contribution margin formatincome statement.)Complete the contribution margin income statement. (Enter losses with a minus sign or parentheses.)Ullie's Sporting GoodsContribution Margin Income StatementFor the Year Ended December 31Sales revenueLess: Variable expensesCOContribution marginLess: Fixed expensesOperating income (loss)

Ullie's Sporting Goods is a retailer of sporting equipment. Last year, Ullie's sales revenues totalled $5,300,000. Total expenses were $2,200,000. Of this amount, approximately $1,260,000 were variable, while the remainder were fixed. Since Ullie's Sporting Goods offers thousands of different products, its managers prefer to calculate the break-even point in terms of sales dollars rather than units. Requirements Requirement 1. What is Ullie's Sporting Goods' current operating income? (Prepare a contribution margin format income statement.) Complete the contribution margin income statement. (Enter losses with a minus sign or parentheses.) Ullie's Sporting Goods Contribution Margin Income Statement For the Year Ended December 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)

Ullie's Sporting Goods is a retailer of sporting equipment. Last year, Ullie's sales revenues totalled $5,300,000. Total expenses were $2,200,000. Of this amount, approximately $1,260,000 were variable, while the remainder were fixed. Since Ullie's Sporting Goods offers thousands of different products, its managers prefer to calculate the break-even point in terms of sales dollars rather than units. Requirements Requirement 1. What is Ullie's Sporting Goods' current operating income? (Prepare a contribution margin format income statement.) Complete the contribution margin income statement. (Enter losses with a minus sign or parentheses.) Ullie's Sporting Goods Contribution Margin Income Statement For the Year Ended December 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 35P

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I have found the variable portion (51.9%) but don't understand how to get the fixed portion in dollars.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. (Round variable cost percentage answer to 1 decimal…
Ronald Medical Supply is a retailer of home medical equipment. Last year, Ronald's sales revenues totaled $6,100,000. Total expenses were $2,590,000. Of this amount, approximately $1,342,000 were variable, while the remainder were fixed. Since Ronald's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements. Requirement 1. What is Ronald's current operating income? Begin by identifying the formula to compute the operating income. Requirements G Operating income Print 1. What is Ronald's current operating income? 2. What is Ronald's contribution margin ratio? 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) - X 4. Ronald's top management is deciding whether to embark on a $230,000 advertising campaign. The marketing firm has projected annual sales volume…
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: Sales $927,500Less Cost of Goods Sold 275,000Gross Marign 652,500Less Operating Expenses:Selling Expenses 205,500Administrative Expenses 280,000 485,500Net Income 167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total fixed costs. a) $350,750b) $432, 250c) $410,000d) $315,700
GPXVZG300 Corp. is a merchandiser that sells it's product for $36 per unit. Variable expenses are $18 per unit, and fixed expenses total $17,000 annually. (ID#45225) Assume that GPXVZG300 sold 21,600 units last year. The manager wants to increase the sales commission by $0.9 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. Q: By how much could advertising be increased with GPXVZG300's profits remaining unchanged? A: $ 4 of 25 Next > < Prev raw ill MacBook Pro
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: Sales $927,500Less Cost of Goods Sold 275,000Gross Marign 652,500Less Operating Expenses:Selling Expenses 205,500Administrative Expenses 280,000 485,500Net Income 167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the contribution margin ratio (round to 3 decimal places if applicable). a)…
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: Sales $927,500Less Cost of Goods Sold 275,000Gross Marign 652,500Less Operating Expenses:Selling Expenses 205,500Administrative Expenses 280,000 485,500Net Income 167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total variable cost per unit. a) $123.87b) $137.81c) $145.08d) $153.99
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Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $116,440, and fixed expenses were $38,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 600 units and total sales by $2,400? (Do not round intermediate calculations.)
Help GPXVZG300 Corp. is a merchandiser that sells it's product for $36 per unit. Variable expenses are $18 per unit, and fixed expenses total $12,000 annually. (ID#80446) Assume that GPXVZG300 sold 32,700 units last year. The manager wants to increase the sales commission by $0.2 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. Q.) By how much could advertising be increased with GPXVZG300's profits remaining unchanged? A.) $ Prev. 12 of 25 Next > %24
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: FRANCORP Income Statement-Automobile Floor Mat Division For First Quarter of Current Year Sales $927,500 Less cost of goods sold Gross margin Less operating expenses: 275,000 652,500 Selling expenses $205,500 Administrative 280,000 485,500 expenses Net income $167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total variable cost per unit. O $137.81 O $153.99 O $123.87 O $145.08
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Last month when Holiday Creations, Incorporated, sold 44,000 units, total sales were $176,000, total variable expenses were $128,480, and fixed expenses were $39,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 525 units and total sales by $2,100? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %