Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 2, Problem 18MCQ
2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18:
Last year, Barnard Company incurred the following costs:
Barnard produced and sold 10,000 units at a price of $31 each.
Refer to the information for Barnard Company on the previous page. Operating income is
- a. $34,000.
- b. $110,000.
- c. $234,000.
- d. $270,000.
- e. $74,000.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Consider the following Information for the business Harry's Vintage Records.
Actuals from the year ended 31st December 2021;
Total Sales Revenue
Total Fixed Costs
$380,000
$90,000
0.20
Contribution Margin Ratio
Calculate Harry's profit or loss in 2021
Select one:
O a. (13,000)
O b. 11,000
c. 12,000
d. (14,000)
Take a look at the following company information:
Sales (000s)
Direct Materials (000s)
Direct Labour (000s)
Gross Profit (000s)
Selling and Admin Expense (000s)
Net profit
$ 1566
$554
$ 211
$801
Answer:
$ 162.5
$
If we decrease the direct materials cost by 2%, what is the new Net Profit?
Show your answer to 2 decimals and include the correct unit.
2. The records of the Dodge Corporation show the following results for the most recent year:
Given the provided date, identify the contribution margin.
Â
There is not a word length requirement for this question; however, you must show your work.
Â
sales (16000 units)
256,000
variable expenses
160,000
net operating income
32,000
Chapter 2 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 2 - Explain the difference between cost and expense.Ch. 2 - What is the difference between accumulating costs...Ch. 2 - What is a cost object? Give some examples.Ch. 2 - What is a direct cost? An indirect cost? Can the...Ch. 2 - What is allocation?Ch. 2 - What is the difference between a product and a...Ch. 2 - Define manufacturing overhead.Ch. 2 - Explain the difference between direct materials...Ch. 2 - Define prime cost and conversion cost. Why cant...Ch. 2 - How does a period cost differ from a product cost?
Ch. 2 - Define selling cost. Give five examples of selling...Ch. 2 - What is the cost of goods manufactured?Ch. 2 - What is the difference between cost of goods...Ch. 2 - What is the difference between the income...Ch. 2 - Why do firms like to calculate a percentage column...Ch. 2 - Accumulating costs means that a. costs must be...Ch. 2 - Product (or manufacturing) costs consist of a....Ch. 2 - Use the following information for Multiple-Choice...Ch. 2 - Prob. 4MCQCh. 2 - The accountant in a factory that produces biscuits...Ch. 2 - Which of the following is an indirect cost? a. The...Ch. 2 - Prob. 7MCQCh. 2 - Kelloggs makes a variety of breakfast cereals....Ch. 2 - Prob. 9MCQCh. 2 - Stone Inc. is a company that purchases goods...Ch. 2 - JackMan Company produces die-cast metal bulldozers...Ch. 2 - Prob. 12MCQCh. 2 - Use the following information for Multiple-Choice...Ch. 2 - Use the following information for Multiple-Choice...Ch. 2 - Use the following information for Multiple- Choice...Ch. 2 - Prob. 16MCQCh. 2 - Use the following information for Multiple-Choice...Ch. 2 - 2-18 Use the following information for Multiple-...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Direct Materials Used in Production Slapshot...Ch. 2 - Cost of Goods Manufactured Slapshot Company makes...Ch. 2 - Cost of Goods Sold Slapshot Company makes ice...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Prob. 26BEACh. 2 - Prob. 27BEBCh. 2 - Prob. 28BEBCh. 2 - Direct Materials Used in Production Morning Smiles...Ch. 2 - 2-30 Cost of Goods Manufactured Morning Smiles...Ch. 2 - Cost of Goods Sold Morning Smiles Coffee Company...Ch. 2 - Use the following information for Brief Exercises...Ch. 2 - Use the following information for Brief Exercise:...Ch. 2 - Service Organization Income Statement Healing...Ch. 2 - Prob. 35ECh. 2 - Products versus Services, Cost Assignment Holmes...Ch. 2 - Assigning Costs to a Cost Object, Direct and...Ch. 2 - Total and Unit Product Cost Martinez Manufacturing...Ch. 2 - Cost Classification Loring Company incurred the...Ch. 2 - Classifying Cost of Production A factory...Ch. 2 - Use the following information for Exercises 2-41...Ch. 2 - Use the following information for Exercises 2-41...Ch. 2 - Direct Materials Used Hannah Banana Bakers makes...Ch. 2 - Cost of Goods Sold Allyson Ashley makes jet skis....Ch. 2 - Use the following information for Exercises 2-45...Ch. 2 - Use the following information for Exercises 2-45...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Use the following information for Exercises 2-47...Ch. 2 - Understanding the Relationship between Cost Flows,...Ch. 2 - Manufacturing, Cost Classification, Product Costs...Ch. 2 - Cost Assignment, Direct Costs Harry Whipple, owner...Ch. 2 - Cost of Direct Materials, Cost of Goods...Ch. 2 - Preparation of Income Statement: Manufacturing...Ch. 2 - Cost of Goods Manufactured, Cost of Goods Sold...Ch. 2 - Cost Identification Following is a list of cost...Ch. 2 - Income Statement, Cost of Services Provided,...Ch. 2 - Cost of Goods Manufactured, Income Statement W. W....Ch. 2 - Cost Definitions Luisa Giovanni is a student at...Ch. 2 - Cost Identification and Analysis, Cost Assignment,...Ch. 2 - Cost Analysis, Income Statement Five to six times...Ch. 2 - Cost Classification, Income Statement Gateway...Ch. 2 - Cost Information and Ethical Behavior, Service...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.arrow_forwardUse the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-13Refer to the information for Barnard Company above. Prime cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.arrow_forwardUse the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-15 Refer to the information for Barnard Company on the previous page. The cost of goods sold per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.arrow_forward
- Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-14Refer to the information for Barnard Company above. Conversion cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.arrow_forwardA company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950arrow_forwardCost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?arrow_forward
- Dunaway Company reports the following costs for the year: How much are Dunaway’s period Costs? $250,000 $270 000 $345,000 $175,000arrow_forwardHernando​ Manufacturing, Inc. reported the following information for the​ year:  Number of Units Produced ​$152,000 Number of Units Sold ​62,000 Cost of Goods Manufactured ​268,000 Cost of Goods Sold ​52,900 Sales Revenue ​130,000 Gross Profit ​72,940 Operating Expense ​727,000  What was the unit product​ cost? (Round your answer to the nearest​ cent.)  A. ​$1.76  B. ​$0.85  C. ​$0.86  D. ​$4.32arrow_forwardI need answer of first three question I need answer of first 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)  Fancy Company reported a contribution margin of $10 per unit. The company’s fixed costs per period were $30,000. Sales were $48,000 for the 3,200 units sold during the period. The income tax rate is 25%. Required:a. What is current net income?b. What is the breakeven point (BEP) in units?c. If the income tax rate is increased to 30%, what is the BEP in dollars?d. If the number of units sold decreases to 3,100 units, what is the BEP in dollars?e. If the sales price is increased by $2, what is the BEP in units? Assume the variable costs, which consist of direct materials, direct labor, and variable overhead, are not changing as a result of increasing the sales price.arrow_forward
- Check my work 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 81,000 units during the year at a selling price of $8.23 per unit. Prepare a contribution format income statement for the year. 15 Complete this question by entering your answers in the tabs below. polnts Skipped Required 1 Required 2 eBook Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Hint Print Units Produced and Sold References 51,000 71,000 91,000 Total costs: Variable costs $ 117,300 Fixed costs 350,000 Total costs $ 467,300 $ $ Cost per unit: Variable cost Fixed cost Total cost per unit $ 0.00 $ 0.00 $ 0.00arrow_forwardI need answer of last three question I 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)  Fancy Company reported a contribution margin of $10 per unit. The company’s fixed costs per period were $30,000. Sales were $48,000 for the 3,200 units sold during the period. The income tax rate is 25%. Required:a. What is current net income?b. What is the breakeven point (BEP) in units?c. If the income tax rate is increased to 30%, what is the BEP in dollars?d. If the number of units sold decreases to 3,100 units, what is the BEP in dollars?e. If the sales price is increased by $2, what is the BEP in units? Assume the variable costs, which consist of direct materials, direct labor, and variable overhead, are not changing as a result of increasing the sales price.arrow_forwardStratford Company distributes a lightweight lawn chair that sells for $15 per unit. Variable expenses are $6 per unit, and fixed expenses total $180,000 annually.  1. Assume that the operating results for last year were as follows:Sales . . . . . . . . . . . . . . . . . . . . . . . $360,000Variable expenses. . . . . . . . . . . . . 144,000Contribution margin . . . . . . . . . . . . 216,000Fixed expenses . . . . . . . . . . . . . . . 180,000Net operating income . . . . . . . . . . $ 36,000Sales (13,500 units at $20 per unit) . . . . . . . $270,000Variable expenses . . . . . . . . . . . . . . . . . . . . 189,000Contribution margin . . . . . . . . . . . . . . . . . . . 81,000Fixed expenses . . . . . . . . . . . . . . . . . . . . . . 90,000Net operating loss . . . . . . . . . . . . . . . . . . . . $ (9,000) a. Compute the degree of operating leverage at the current level of sales. b. The president expects sales to increase by 15% next year. By how much should net operating income…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License