Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and 60% fixed); direct materials $480,340; direct labor $272,600; administrative expenses $253,800 (20% variable and 80% fixed); and manufacturing overhead $329,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1)   Contribution margin for current year   $enter a dollar amount     Contribution margin for projected year   $enter a dollar amount (2)…

Ivanhoe Corporation has collected the following information after its first year of sales. Sales were $1,620,000 on 108,000 units; selling expenses $270,000 (40% variable and 60% fixed); direct materials $551,880; direct labor $313,200; administrative expenses $291,600 (20% variable and 80% fixed); and manufacturing overhead $378,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. Compute the contribution margin for the current year, contribution margin for the projected year and fixed costs for current year

Cullumber Corporation has collected the following information after its first year of sales. Sales were $1,440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382.000 ( 70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) (2) Contribution margin for current year Contribution margin for projected year Fixed Costs $ I $

AN Vieiol Group has collected the following information after its first year of sales. Sales were €1,600,000 on 100,000 units, selling expenses €250,000 (40% variable and 60% fixed), direct materials €490,000, direct labor €290,000, administrative expenses €270,000 (20% variable and 80% fixed), and manufacturing overhead €380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. Required 1. Prepare the CVP income statement for the current year and projected year. 2. Explain the change in net income between current and projected year in terms of revenue and costs change. 3. Compute the break-even point in units and sales for current year. 4. The company has a target net income of €200,000. What are the required sales for the company to meet its target? 5. If the company meets its target net income number, by what percentage could its sales fall…

Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales     $3,150,000 Cost of goods sold     1,280,000 Gross profit     $1,870,000 Expenses:       Selling expenses $320,000     Administrative expenses 620,000     Total expenses     940,000 Income from operations     $930,000 The division of costs between variable and fixed is as follows:   Variable Fixed Cost of goods sold 75%   25%   Selling expenses 60%   40%   Administrative expenses 40%   60%   Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total fixed costs and the total variable costs for the current year. Total variable costs $ Total fixed costs…

Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales     $3,150,000 Cost of goods sold     1,280,000 Gross profit     $1,870,000 Expenses:       Selling expenses $320,000     Administrative expenses 620,000     Total expenses     940,000 Income from operations     $930,000 The division of costs between variable and fixed is as follows:   Variable Fixed Cost of goods sold 75%   25%   Selling expenses 60%   40%   Administrative expenses 40%   60%   Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs.   7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following…

Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows: Sales     $3,150,000 Cost of goods sold     1,280,000 Gross profit     $1,870,000 Expenses:       Selling expenses $320,000     Administrative expenses 620,000     Total expenses     940,000 Income from operations     $930,000 The division of costs between variable and fixed is as follows:   Variable Fixed Cost of goods sold 75%   25%   Selling expenses 60%   40%   Administrative expenses 40%   60%   Management is considering a plant expansion program for the following year that will permit an increase of $720,000 in yearly sales. The expansion will increase fixed costs by $270,000 but will not affect the relationship between sales and variable costs. 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that…

Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and $30,000 manufacturing overhead cost, which included 20% variable manufacturing overhead cost. The selling and administrative expenses were $100,000, which included $60,000 fixed selling and administrative costs. Assume that the selling price per unit $20, how much was the total contribution margin?

Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the current month, the two divisions reported the following results.      Hardware   Software Sales $ 660,000     $ 720,000   Variable costs (as a percentage of sales)   40 %     45 % Traceable fixed costs $ 250,000     $ 125,000        In addition, fixed costs common to both divisions amounted to $229,000.   Prepare an income statement showing percentages as well as dollar amounts. Conclude your statement with income from operations for the business and with the responsibility margin for each division. (Round percentage answers to 2 decimal place. i.e. 0.1234 should be considered as 12.34%.)