Blossom Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $8.496,000.

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statements for the year ending December, 31, 2014, is as follows   Sales                                                                               $75,000,000 Cost of Goods Sold   Variable                                         $31,500,000   Fixed                                                 8,610,000                40,110,000 Gross Margin                                                                      34,890,000 Selling and marketing expenses   Commission                                    13,500,000   Fixed Costs                                      10,260,000                23,760,000 Operating Income                                                              11,130,000   The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission 8%…

Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales A В C $162,000 $242,000 $263,000 (84,000) (30,000) (80,000) (31,000) Cost of goods sold Sales commissions (128,000) (18,000) Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) 16,000 128,000 152,000 (35,000) (39,000) (33,000) (3,000) (15,000) (26,000) $ 78,000 119,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Keep Seg. A Decision Sales Cost of…

.Kipling Company has sales of $1,500,000 for the first quarter of 2016. In making the sales, the company incurred the following costs and expenses. Variable Fixed Product costs $500,000 $550,000 Selling expenses 100,000 75,000 Administrative expenses 80,000 67,000 Instructions Calculate net income under CVP for 2016.

Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.

Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales А В С $169,000 $243,000 $258,000 (80,000) (31,000) (121,000) (17,000) Cost of goods sold Sales commissions (88,000) (30,000) Contribution margin General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) 132,000 31,000 140,000 (34,000) (48,000) (32,000) (6,000) (11,000) (9,000) $73,000 $108,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Keep Seg.A Decision Sales Cost of goods…

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 Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.

Patterson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. PATTERSON COMPANY Income Statements for the Year 2014 Segment Sales Cost of goods sold А В C $164,000 $250,000 $245,000 (84,000) (29,000) |(130,000) (18,000) (80,000) (22,000) Sales commissions Contribution margin 143,000 16,000 137,000 General fixed oper. exp. (allocation of president's salary) Advertising expense (specific to individual divisions) (37,000) (32,000) (34,000) (5,000) (11,000) 0 (26,000) $ 94,000 $ 109,000 Net income Required: a. Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Effect on income b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. PATTERSON COMPANY Comparative Income Statements for the Year 2014 Eliminate Seg. A Decision Keep Seg. A Sales Cost…