View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. Managemerit is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 100,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 104,000 units. At the end of 2021. Crane has 32.000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,516,000. (a) Prepare a sales budget for nder each plan. (Rour Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24

View Policies Current Attempt in Progress Crane Industries had sales in 2021 of $5.440,000 and gross profit of $880,000. Managemerit is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 100,000 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 104,000 units. At the end of 2021. Crane has 32.000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,000 units. If Plan B is accepted, the ending inventory should be equal to 48,000 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,516,000. (a) Prepare a sales budget for nder each plan. (Rour Unit selling price answers to 2 decimal places, eg. 52.70.) CRANE INDUSTRIES Sales Budget Plan A Plan B %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For 2023, the estimated (budgeted) cost and revenue information of Şam Company is provided below: Sales units = 200000 units, Selling price per unit = 15 dollars, Number of units produced = 220.000 units, DM = $3 per unit, DL = $1 per unit, Var MOH = $2 per unit, Fixed MOH = $440.000, Var Selling and Adm Exp = $4 per unit, Fixed S&A Exp = $60.000. A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of Şam Company? D.)Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 5%.
Top managers of Juda Industries predicted 2025 sales of 14,500 units of its product at a unit price of $10.00. Actual sales for the year were 14,300 units at $13.00 each. Variable costs were budgeted at $3.20 per unit, and actual variable costs were $3.30 per unit. Actual fixed costs of $49,000 exceeded budgeted fixed costs by $2,000. Prepare Juda Industries' flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a 0 for any zero balances. Label the variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input field blank.) Juda Industries Flexible Budget…
View Policies Show Attempt History Current Attempt in Progress Carla Vista Industries had sales in 2021 of $6,528,000 and gross profit of $1,056,000. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 120,000 units from its 2021 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 124,800 units. At the end of 2021, Carla Vista has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 36,000 units. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.50 in direct labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,820,000. (a) Your answer is correct. Prepare a sales budget for 2022 under each plan. (Round Unit…
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Please help me with the functions for this ! Thank you! Jay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of 2024: Sales in units 17,000 Sales price per unit $48.00 After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) $29.00 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) $45,000 Rent Expense (per quarter) $27,000 Depreciation Expense (per quarter) $36,000 Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Total Cost Units Quarter 1 $67,000 12,500 Quarter2 $94,000 21,000 Quarter 3 $89,800 13,800 Quarter 4 $92,600 20,000 2023 Quarter 1 $72,500 13,700 Quarter2 $80,000 14,000 Quarter 3 $84,000 14,300 Quarter…
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