Eneliko Company installs home theater systems. The company’s most re.pdf

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Eneliko Company installs home theater systems. The company’s most recent monthly contribution format income statement appears below: Compute the company’s degree of operating leverage. (Round your answer to 2 decimal places.) Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in sales. (Input the amount as a positive value. Round your intermediate calculations and final answers to 2 decimal places.) Construct a new contribution format income statement for the company assuming a 16% increase in sales. (Input all amounts as positive values except losses which should be indicated by a minus sign.) Eneliko Company installs home theater systems. The company’s most recent monthly contribution format income statement appears below: Solution Statement showing computations Particulars Amount Sales 137,000.00 Variable Expenses 54,800.00 Contribution Margin 82,200.00 Fixed Expenses 20,000.00 Net opertaing Income 62,200.00 DOL= Contribution/EBIT 1.32 For every 1% increase in sales EBIT will increase by 1.32% for 16% inrease in sales EBIT will increase by = 16*1.32% = 21.14% Particulars Amount Sales 158,920.00 Variable Expenses 63,568.00 Contribution Margin 95,352.00 Fixed Expenses 20,000.00 Net opertaing Income 75,352.00 Existing operating Income 62,200.00 Difference 13,152.00 % incresae 21.14%.

Education

Top of Form 1. Award: 8.33 points Pringle Company distributes a single product. The company’s sales and expenses for a recent month follow: Total Per Unit Sales $ 300,000 $ 20 Variable expenses 210,000 14 Contribution margin 90,000 $ 6 Fixed expenses 78,000 Net operating income $ 12,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Omit the "$" sign in your response.) Break-even point in unit sales units Break-even point in sales dollars $ 2. Without resorting to computations, what is the total contribution margin at the break-even point? (Omit the "$" sign in your response.) Total contribution margin $ 3. How many units would have to be sold each month to earn a target profit of $31,200? Use the formula method. Units sold 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places. Omit the "$" and "%" signs in your response.) Dollars Percentage Margin of safety $ % 5. What is the company’s CM ratio? If monthly sales increase by $61,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Omit the "$" and "%" signs in your response.) CM ratio % Net operating income increases by $ References WorksheetLearning Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume.Learning Objective: 05-07 Compute the margin of safety and explain its significance. Difficulty: EasyLearning Objective: 05-05 Determine the level of sales needed to achieve a desired target profit. Learning Objective: 05-01 Explain how changes in activity affect contribution margin and net operating income.Learning Objective: 05-06 Determine the break-even point. 2. Award: 8.33 points Reveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for $130 per unit. Variable expenses are $91 per lantern, and fixed expenses associated with the lantern total $179,400 per month. Required: 1. Compute the company’s break-even point in number of lanterns and in total sales dollars. (Omit the "$" sign in your response.) Number of lanterns Total sales dollars $ 2. If the variable expenses per lantern increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) Higher break-even point Lower break-even point 3. At present, the company is selling 16,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Prepare two contribution format income statements, one under present operating conditions, a ...

Brewer chapter 10

М. Орхоо

Mel Harrison, manager of Border Corporation’s Home Office Products Division, is considering adding a new product line but wants to analyze the numbers first. The division has led the company in return on investment (ROI) for three years. The division's most recent ROI was 24%. Adding the new product line would require $1 million in additional assets but is expected to generate $2 million in annual sales. The line's variable costs are 60% of sales and fixed costs are $620,000. If the minimum required ROI is 13% and performance is evaluated using residual income, the division's residual income was $48,000 originally but would become $168,000 if the new line is added, so Mel

CVP Relationships (Chapter 5 Connect Homework)

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ACCT 505 Final Exam Guide (New) All 3 Set

sonjon08

This document contains information about an accounting exam including: - The exam contains multiple choice, short answer, and essay questions. - Sample exam questions are provided covering topics like cost accounting, budgeting, and investment analysis. - Detailed data is given for sample questions involving cost of goods manufactured schedules, absorption vs variable costing income statements, and make-or-buy analyses.

Acct 505 final exam (new) all 3 set

sonjon07

Acct 505 final exam (new) all 3 set

niharikaa14

Problem 4-6 Calculating Internal Growth [LO3]The most recent fin.docx

elishaoatway

Problem 4-6 Calculating Internal Growth [LO3] The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 16,300 Current assets $ 10,900 Debt $ 15,400 Costs 11,700 Fixed assets 26,250 Equity 21,750 Taxable income $ 4,600 Total $ 37,150 Total $ 37,150 Taxes (40%) 1,840 Net income $ 2,760 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 20 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Internal growth rate % 2. Problem 4-7 Calculating Sustainable Growth [LO3] The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $ 16,200 Current assets $ 10,600 Debt $ 15,100 Costs 12,400 Fixed assets 25,500 Equity 21,000 Taxable income $ 3,800 Total $ 36,100 Total $ 36,100 Taxes (40%) 1,520 Net income $ 2,280 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 25 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Sustainable growth rate % 3. Problem 4-8 Sales and Growth [LO2] The most recent financial statements for Mc Govney Co. are shown here: Income Statement Balance Sheet Sales $ 52,600 Current assets $ 23,200 Long-term debt $ 54,000 Costs 42,300 Fixed assets 93,000 Equity 62,200 Taxable income $ 10,300 Total $ 116,200 Total $ 116,200 Taxes (34%) 3,502 Net income $ 6,798 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt–equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Maximum increase in sales $ 4. Problem 4-16 Full-Capacity Sales [LO1] Alter Bridge Mfg., Inc., is currently operating at only 78 percent of fixed asset capacity. Current sales are $840,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Maximum sales growth % 5. Problem 4-17 Fixed Assets and Capacity Usage [LO1] Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $760,000. Fixed assets are $460,000 and sales are projected .

Acct 505 final exam 100% correct answers

ProfessorLance

1. Silver City performed a flexible budget analysis to evaluate its cost control. Actual costs were compared to the static budget. 2. Globe Co. conducted a make-or-buy analysis to determine if it should continue producing electronic hinges internally or purchase them from an outside supplier. The analysis showed purchasing from Supplier C would be the most cost effective option. 3. Mesa Company prepared income statements using both absorption costing and variable costing. Variable costing more accurately reflects periodic income by excluding fixed overhead from the cost of goods sold calculation.

Business Solution s sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the selling price per composite unit. (Omit the "$" sign in your response.) Selling price per composite unit $ Required: 1. Compute the break-even point in dollar sales for year 2011. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.) Break-even point in dollar sales for year 2011 $ 2. Compute the predicted break-even point in dollar sales for year 2012 assuming the machine is installed and there is no change in the unit sales price. (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount. Omit the "$" sign in your response.) Break-even point in dollar sales for year 2012 $ 3. Prepare a forecasted contribution margin income statement for 2012 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold (20,300 units) will not change, and no income taxes will be due. (Input all amounts as positive values. Omit the "$" sign in your response.) JETSON COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2012 $ 4. Compute the sales level required in both dollars and units to earn $161,000 of after-tax income in 2012 with the machine installed and no change in the unit sales price. Assume that the income tax rate is 30%. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.) Sales level required in dollars $ 5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume an income tax rate of 30%. (Input all amounts as positive values. Round your "Sales level required in units" to nearest whole number. Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.) This year Cairo Company sold 41,000 units of its only product for $17.20 per unit. Manufacturing and selling the product required $126,000 of fixed manufacturing costs and $186,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $ 4.60 Direct labor (paid on the basis of completed units) 3.60 Variable overhead costs 0.46 Variable selling and administrative costs 0.26 Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and will not affect product quality or marketability. Management is considering an increase in the unit sales price to reduce the number of units sold because the factory’s output is nearing its annual output capacity of 46,000 units. Two.

INCENTIVE TO OVERPRODUCE INVENTORYThe absorption of fixe.pdf

aratextails30

INCENTIVE TO OVERPRODUCE INVENTORY The absorption of fixed overhead costs as part of the cost of inventory on the balance sheet presents ethical challenges because it provides the opportunity to manipulate reported income. This classic case is based on an actual company’s experience.* Brandolino Company uses an actual-cost system to apply all production costs to units produced. The plant has a maximum production capacity of 40 million units but during year 1 it produced and sold only 10 million units. There were no beginning or ending inventories. The company’s absorption-costing income statement for year 1 follows: BRANDOLINO COMPANY Income Statement For Year 1 Sales (10,000,000 units at $6) $ 60,000,000 Cost of goods sold: Direct costs (material and labor) (10,000,000 at $2) $20,000,000 Manufacturing overhead 48,000,000 68,000,000 Gross margin $ (8,000,000) Less: Selling and administrative expenses 10,000,000 Operating income (loss) $(18,000,000) The board of directors is upset about the $18 million loss. A consultant approached the board with the following Page 345offer: “I agree to become president for no fixed salary. But I insist on a year-end bonus of 10 percent of operating income (before considering the bonus).” The board of directors agreed to these terms and hired the consultant as Brandolino’s new president. The new president promptly stepped up production to an annual rate of 30 million units. Sales for year 2 remained at 10 million units. Here is the resulting absorption-costing income statement for year 2: BRANDOLINO COMPANY Income Statement For Year 2 Sales (10,000,000 units at $6) $60,000,000 Cost of goods sold: Costs of goods manufactured: Direct costs (material and labor) (30,000,000 at $2) $60,000,000 Manufacturing overhead 48,000,000 Total cost of goods manufactured $108,000,000 Less: Ending inventory: Direct costs (material and labor) (20,000,000 at $2) $40,000,000 Manufacturing overhead (20/30 × $48,000,000) 32,000,000 Total ending inventory costs $72,000,000 Cost of goods sold 36,000,000 Gross margin $24,000,000 Less: Selling and administrative expenses 10,000,000 Operating income before bonus $14,000,000 Bonus 1,400,000 Operating income after bonus $12,600,000 The day after the year 2 statement was verified, the president took his check for $1,400,000 and resigned to take a job with another corporation. He remarked, “I enjoy challenges. Now that Brandolino Company is in the black, I’d prefer tackling another challenging situation.” (His contract with his new employer is similar to the one he had with Brandolino Company.) What do you think is going on here? How would you evaluate the company’s year 2 performance? Using variable costing, what would operating income be for year 1? For year 2? (Assume that all selling and administrative costs are committed and unchanged.) Compare those results with the absorption-costing statements. INCENTIVE TO OVERPRODUCE INVENTORY The absorption of fixed overhead costs as part of the c.

ACCT 505 Final Exam (New) All 3 Set3

critterc06

The document contains a practice exam for an accounting course with multiple choice and essay questions covering various topics such as cost accounting, budgeting, and investment analysis. Specifically: - The exam contains 3 sets of questions, with each set containing between 5-7 questions. Questions assess topics like cost-volume-profit analysis, process costing, absorption vs variable costing, budgeting, and make-or-buy decisions. - Sample questions calculate break-even points, predetermined overhead rates, income statements, cash budgets, and net present value of investment opportunities. - Answers are provided for some questions, including calculations and brief explanations of results. Other questions only list the requirements and provide no solutions.

ACCT 505 Final Exam (2017 version)

GleenBallak

1. The document contains accounting problems related to cost of goods manufactured, cost of goods sold, break-even analysis, and capital budgeting. 2. One problem involves calculating predetermined overhead rate and preparing a cash budget. Another requires constructing a flexible budget performance report. 3. The last problem asks the student to calculate net present value of a new product investment and determine if the company should proceed based on the NPV.

ACCT 505 Effective Communication/tutorialrank.com

jonhson174

ACCT 505 Enhance teaching - tutorialrank.com

LeoTolstoy13

Acct 505 final exam solution

Homework Help Online

This document contains solutions to multiple choice and problem-style questions for an ACCT 505 final exam. The questions cover topics such as flexible budget analysis, make-or-buy analysis, absorption vs variable costing income statements, schedule of cost of goods manufactured and cost of goods sold, process costing using the weighted average method, net present value calculations, break-even analysis, predetermined overhead rates, and cash budgeting.

Acct 505 Inspiring Innovation--tutorialrank.com

PrescottLunt360

Dimitrov Corporation, a company that produces and sells a single p.docx

duketjoy27252

Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July. Sales (6,400 units) $403,200 Variable expenses 275,200 Contribution margin 128,000 Fixed expenses 103,500 Net operating income $24,500 If the company sells 6,300 units, its net operating income should be closest to: $24,500 $23,979 $22,500 $20,000 A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold 370,000 Sales revenue $1,880,000 Variable manufacturing expense $953,000 Fixed manufacturing expense $252,000 Variable selling and administrative expense $330,000 Fixed selling and administrative expense $218,000 Net operating income $127,000 The company's contribution margin ratio is closest to: 49.3% 82.4% 31.8% 75.0% Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $140 100% Variable expenses 70 50% Contribution margin $ 70 50% The company is currently selling 5,700 units per month. Fixed expenses are $342,500 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Decrease of $6,700 Increase of $1,700 Increase of $8,400 Decrease of $1,700 Spartan Systems reported total sales of $365,000, at a price of $20 and per unit variable expenses of $14, for the sales of their single product. Total Per Unit Sales $365,000 $20 Variable expenses 219,000 14 Contribution margin 146,000 $6 Fixed expenses 113,000 Net operating income $33,000 What is the amount of contribution margin if sales volume increases by 20%? $146,000 $39,600 $175,200 $26,400 Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. Sales (4,600 units) $ 193,200 Variable expenses 87,400 Contribution margin 105,800 Fixed expenses 45,200 Net operating income $ 60,600 If the company sells 4,700 units, its total contribution margin should be closest to: $61,917 $105,800 $108,100 $110,000 Darwin Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: $539,000 $1,911,000 $2,450,000 $1,372,000 Puchalla Corporation sells a product for $120 per unit. The product's current sales are 12,300 units and its break-even sales are 10,824 units. The margin of safety as a percentage of sales is closest to: 88% 12% 14% 86% Alpha Corporation reported the following data for its .

Acct 505 Teaching Effectively--tutorialrank.com

Soaps71

Contribution

Dr.Rekha Swarnkar

Contribution is revenue minus variable costs. It represents the amount available to cover fixed costs and generate profit. The contribution margin ratio is contribution divided by sales revenue and expresses what percentage of sales is available for fixed costs and profit. It is calculated by taking the difference between total sales and total variable costs, then dividing by total sales. Higher contribution margin ratios indicate more sales revenue available for covering fixed costs and generating profit.

A manager should always reject a special order ifThe .docx

stelzriedemarla

A manager should always reject a special order if: The area to the right of the breakeven point and between the total revenue line and the total expense line represents: The horizontal line intersecting the vertical y-axis at the level of total cost on a CVP graph represents: The Muffin House produces and sells a variety of muffins. The selling price per dozen is $15, variable costs are $9 per dozen, and total fixed costs are $4,200. How many dozen muffins must The Muffin House sell to breakeven? Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00. What are breakeven sales in dollars? Pluto Incorporated provided the following information regarding its single product: Direct materials used $240,000 Direct labor incurred $420,000 Variable manufacturing overhead $160,000 Fixed manufacturing overhead $100,000 Variable selling and administrative expenses $60,000 Fixed selling and administrative expenses $20,000 The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 3,500 units at a sale price of $55 per product? Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling 75,000 seats per year. The following information relates to current production: Sale price per unit $400 Variable costs per unit: $220 Manufacturing $50 Marketing and administrative Total fixed costs: Manufacturing $750,000 Marketing and administrative $200,000 If a special sales order is accepted for 7,000 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) The effect of a plant closing on employee morale is an example of which of the following? If total fixed costs are $455,000, the contribution margin per unit is $25.00, and targeted operating income is $25,000, how many units must be sold to breakeven? In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be: In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be: Samson Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $160,000 Direct labor incurred $185,000 Variable manufacturing overhead $120,000 Variable selling and administrative expenses $70,.

$Evaluate the Integral Using the concept of Partial fraction Decompos.pdf$ $Evaluate the Integral Using the concept of Partial fraction Decompos.pdf$

Evaluate the Integral Using the concept of Partial fraction Decompos.pdf

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