Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Product Weedban $ 11.00 $ 3.00 $ 128,000 Greengrow $ 31.00 $ 15.00 $ 35,000 Traceable fixed expenses per year Last year the company produced and sold 37,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $95,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Product Weedban $ 11.00 $ 3.00 $ 128,000 Greengrow $ 31.00 $ 15.00 $ 35,000 Traceable fixed expenses per year Last year the company produced and sold 37,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $95,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

See similar textbooks

Similar questions

Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 12.00 $ 32.00 Variable expenses per unit $ 2.40 $ 12.00 Traceable fixed expenses per year $ 129,000 $ 34,000 Common fixed expenses in the company total $111,000 annually. Last year the company produced and sold 39,500 units of Weedban and 17,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 30.00 Variable expenses per unit $ 2.40 $ 12.00 Traceable fixed expenses per year $ 134,000 $ 30,000 Common fixed expenses in the company total $104,000 annually. Last year the company produced and sold 35,500 units of Weedban and 25,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow 0 0 0 0 $0 $0 $0
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban GreengrowSelling price per unit . . . . . . . . . . . . . . . . . . . . . . . $10.00 $36.00Variable expenses per unit . . . . . . . . . . . . . . . . . . $2.60 $12.00Traceable fixed expenses per year . . . . . . . . . . . . $128,000 $42,000 Common fixed expenses in the company total $109,000 annually. Last year the company produced and sold 44.500 units of Weedban and 20,000 units of Greengrow.Required:Prepare a contribution format income statement segmented by product lines. Total Company Weedban Greengow Sales Variable expenses Contribution margin 0 0 0 Traceable fixed expenses Product…
Company Y produces and sells two packaged products Weedban and Greengrow Revenue and cost information related to the products follows: Weedban Greengrow SALES price per unit $9.00 $ 31.00 Variable expense per unit $2.90 $14.00 Traceable fixed expense per year $131,000 $44,000 Last year the company produced and sold 38,500 units of weed ban and 17,000 of Green grow. It's annual common fixed expenses are $106,000. Prepare a contribution format income statement segmented by-product lines ? Thank you,
Scent Fragrance Company manufactures and sells several ranges of perfumes. The Average revenue and cost of sales are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96,000 Required: a) Calculate the contribution margin per unit. b) Calculate the number of units Scent Fragrance Company must sell each year to break even. c) Calculate the number of units Scent Fragrance Company must sell to yield a profit of $144,000. d) Managers may use Sensitivity analysis in their accounting system.i) What is sensitivity analysis? ii) How is Sensitivity analysis useful to managers?
Shaw Company produces and sells two packaged products—Z-Bikes and y Bikes. Revenue and cost information relating to the products follow: Product Z Bikes Y Bikes Selling price per unit $ 175.00 $ 200.00 Variable expenses per unit $ 85.00 $ 105.00 Traceable fixed expenses per year $ 200,000 $ 75.00 Common fixed expenses in the company total $110 annually. Last year the company produced and sold 50,000 units of Z Bikes and 30,000 units of Y Bikes. Required: Prepare a contribution format income statement segmented by product lines.
nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00Direct material cost per tube 2.10 Direct labour cost per tube 1.35Variable overhead cost per tube 0.75Total fixed costs for the year. 210,000RequiredWhat is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysis
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenbergplans to sell 30,000 ceiling fans and 70,000 table fans in the coming year. Product price and costinformation includes: Ceiling Fan Table FanPrice $60 $15Unit variable cost $12 $7Direct fixed cost $23,600 $45,000Common fixed selling and administrative expenses total $85,000.Required:1. What is the sales mix estimated for next year (calculated to the lowest whole number foreach product)?2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans.How many ceiling fans and table fans are sold at break-even?3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on theunit sales calculated in Requirement 2.4. What if Vandenberg, Inc., wanted to earn operating income equal to $14,400? Calculate thenumber of ceiling fans and table…
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 50,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $52 $15 Unit variable cost $12 $9 Direct fixed cost $25,200 $48,000 Common fixed selling and administrative expenses total $78,000.See screenshots
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ______ : _____ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans ______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement 2. If…