Obj. 2.3 PR 6-2A Break-even sales under present and proposed conditions Portmann Company, operating at full capacity, sold 1.000.000 units at a price of $188 per unit during the current year. Its income statement is as follows: Sales.... Cost of goods sold $ 188,000,000 (100,000,000) $ 88,000,000 Gross profit.. Expenses: Selling expenses.. $16,000,000 Administrative expenses... 12,000,000 Total expenses (28,000,000) $ 60,000,000 Operating income.. The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30%
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- Please help with questions 4 thru 8 please Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 129,600 units at a price of $63 per unit during the current year. Its income statement is as follows: Sales $8,164,800 Cost of goods sold 2,898,000 Gross profit $5,266,800 Expenses: Selling expenses $1,449,000 Administrative expenses 861,000 Total expenses 2,310,000 Income from operations $2,956,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $630,000 in yearly sales. The expansion will increase fixed costs by $84,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable…4-3 Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $189 per unit during the current year. Its income statement is as follows: Sales $189,000,000 Cost of goods sold (98,000,000) Gross profit $91,000,000 Expenses: Selling expenses $14,000,000 Administrative expenses 19,800,000 Total expenses (33,800,000) Operating income $57,200,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $11,340,000 in yearly sales. The expansion will increase fixed costs by $4,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed…Question 1 During Goodluck Company's first 2 years of operations, the company reported the following net income as follows: Year 1 Year 2 Sales @ $25 Cost of goods sold @ $18 per unit Gross profit Selling and administrative expenses per unit $1,000,000 $1.250,000 (720,000) (900,000) 280,000 350,000 (210,000) (230,000) ($2 per unit variable; $130 fixed each year) Net income 70,000 120,000 The company's $18 unit product cost is computed as follows: Direct materials $4 Direct labour $7 Variable Manufacturing overhead Fixed manufacturing overhead ($270,000 + 45,000 units $1 $6 Production and cost data for the two years are Year 1 Year 2 Units produced Units sold 45,000 40,000 45,000 50,000 Required: а) Compute the product cost. b) Prepare a variable costing contribution format income for Year 1 and Year 2
- i need 4-5-6-7 i already have 1,2,3 thank you Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 152,400 units at a price of $120 per unit during the current year. Its income statement is as follows: Sales $18,288,000 Cost of goods sold 6,480,000 Gross profit $11,808,000 Expenses: Selling expenses $3,240,000 Administrative expenses 1,960,000 Total expenses 5,200,000 Income from operations $6,608,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $1,440,000 in yearly sales. The expansion will increase fixed costs by $192,000, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total…1. Year one income statement by months ( sales by year 3 $2.7m 2.7 m /3 = $900,000 average each year sales 900,000 / 12 = $75,000 sales each month Revenues: Net sales $75,000 each month Expenses and loses Costs of goods sold 1,786 x $15.60 = $27,863.78 Capital expenses $1,150 / 12= $95.83 Location expenses $76,415/ 12 = $6,367.92 Advertising / Promotional expenses $78,285/ 12 = $6,523.75 CalculateTotal expenses Depreciation expense is straight line for this project ?. Use the market value of the asset divided by monthly expected life of the asset, We will not use salvage value in calculating depreciation expense.Need help with number 6, please I am stuck Determine the number of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 76,950 units at a price of $48 per unit during the current year. Its income statement for the current year is as follows: Sales $3,693,600 Cost of goods sold 1,824,000 Gross profit $1,869,600 Expenses: Selling expenses $912,000 Administrative expenses 912,000 Total expenses 1,824,000 Income from operations $45,600 The division of costs between fixed and variable is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program that will permit an increase of $288,000 in yearly sales. The expansion…
- 00 Chapter 1 PROBLEM 1-19 Traditional and Contribution Format Income Statements L01-6 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales..... Beginning merchandise inventory. Purchases..... 1. 2. 3. 4. 5. 6. Ending merchandise inventory Fixed selling expense...... Fixed administrative expense. Variable selling expense. Variable administrative expense Contribution margin. Net operating income $300,000 $20,000 $200,000 $7,000 ? $12,000 $15,000 ? $60,000 $18,000 Required: Prepare a contribution format income statement. Prepare a traditional format income statement. Calculate the selling price per unit. Calculate the variable cost per unit. Calculate the contribution margin per unit. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? Why?Sales per unit $15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units Total variable annual cost charged to expense in direct costinga. $110,000b. $117,500c. $80,000 d. $100,000 6. Total fixed cost charged against current year’s operations in absorption costinga. P35,000 b. $25,000 c. $15,000 d. $43,00039. The gross profit of Reade Company for each of the years ended December 31, 20PY and 20CY, are as follows: 20PY 20CY Sales P792,000 PB00,000 Cost of goods sold 464.000 480.000 Gross profit P328.000 2320 000 Assuming that selling prices were 10% lower during 200Y, what would be the amounl of decrease in gross profit due to the change in selling price? P 8,000 b. P72,000 P79,200 d. P88,000 a. C. (aicpа)
- Sales variations analysis 37. Garfield Corporation, which sells a single product, provided the following data from its income statements for the calendar years, 20CY and 20PY: 20CY Sales (150,000 units) Cost of goods sold Gross profit P750,000 525.000 P225.000 Sales (180,000 units) Cost of goods sold Gross profit 20PY (Base year) P720,000 575.000 P145.000 In an analysis of variation in gross profit between the two years, what would be the effects of changes in sales price and sales volume? Sales price P150,000 favorable b. P150,000 unfavorable c. P180,000 favorable d. P180,000 unfavorable Sales volume P120,00 unfavorable P120,000 favorable P150,000 unfavorable P150,000 favorable a. (aicра)7- For the Quick Response Company, the inventory turnover is 20 and the average inventory is BD 1,132,500 while the annual demand for their basic material is 650,500 units. Find the annual cost of goods sold. A. 5,600,400 B. 22,650,000 C. 52, 970,300 D. 10,880,160Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes’s gross profit percentage for this period? (Round your answer to the nearest whole percent.) a. 36% b. 3.4 times c. 64% d. 17%