Homework Answers
| 1 | Strawberry candy pack | Chocolate candy pack | Orange candy pack | Total | ||
| Forecasted sales yearly | 10,000 | 20,000 | 10,000 | 40,000 | packs | |
| Sales | $200,000 | $200,000 | $120,000 | $520,000 | ||
| Less: Cost | $60,000 | $80,000 | $60,000 | $200,000 | ||
| Contribution | $140,000 | $120,000 | $60,000 | $320,000 | ||
| Less: Fixed Cost | ||||||
| Shop Rent | $20,000 | |||||
| Others | $30,000 | |||||
| Net Profit/(Loss) | $270,000 | |||||
| Strawberry candy pack | Chocolate candy pack | Orange candy pack | Total | |||
| 2 | Contribution margin ratio = | 70.00% | 60.00% | 50.00% | ||
| (Contribution/Sales) | ||||||
| Weight | 25% | 50% | 25% | |||
| Weighted average contribution margin | 17.50% | 30.00% | 12.50% | 60.00% | ||
| 3 | Target Income Sales volume = | ((Fixed Costs + Target income/(1-Tax rate))/ Contribution Margin ratio | ||||
| = | ($50,000 + $200,000)/60% | |||||
| = | $416,667 | |||||
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The following data has been provided to the management accountant at Fruit Candy to conduct CVP...
7. Critical thinking and ethics The management accountant for the Chocolate S'more Company has prepared the...
7. Critical thinking and ethics The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: Chocolate Other Candy $40,000 26,000 14,000 Total Fudge $25,000 $35,000 $100,000 19,000 16,000 2,000 2,000 5.000 S7,000 Sales Cost of goods sold Contribution margin Delivery and ordering costs2,000 Rent (per sq. foot used) 3,000 Allocated corporate costs 5,000 Corporate profit 60.000 40,000 7,000 8,000 15,000 $10,000 15,000 10,000 3,000 3,000 5,000 s(1,000) $4,000 a. I pt-...
The Proportion Challenged Candy Co. makes and sells boxes of chocolate candy. Proportion has fixed expenses...
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Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials...
Larcker Manufacturing's cost accountant has provided you with
the following information for January operations.
Direct materials
$
36
per unit
Fixed manufacturing overhead costs
$
200,000
Sales price
$
200
per unit
Variable manufacturing overhead
$
19
per unit
Direct labor
$
32
per unit
Fixed marketing and administrative costs
$
185,000
Units produced and sold
$
5,500
Variable marketing and administrative costs
$
7
per unit
Required:
a. Prepare a gross margin income statement.
b. Prepare a contribution margin...
5. Slip-Shod Company manufactures and markets several products. Management is considering the future of one product,...
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Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials...
Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials 35 per unit $ 205,000 24 Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor 200 per unit 21 per unit 26 per unit $ 200,000 5,500 Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 9 per unit 2$ Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this...
Tennis World manufactures and sells two tennis racquets Gamma and Kennex. The following data are provided:...
Tennis World manufactures and sells two tennis racquets Gamma and Kennex. The following data are provided: Gamma Kennex Sales mix in units 60% 40% Selling price $310 $360 Variable manufacturing costs $115 $140 Annual fixed costs of the company are $8,200,000 and the budgeted sales is $15,000,000. The company is subject to a tax rate of 30%. Required: (i) Calculate the unit contribution margin for each product type. (1 mark) (ii) Determine the weighted-average unit contribution margin. (1 mark) 12...
The management accountant for Giada's Book Store has prepared the following income statement for the most...
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Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues ......... Total fixed costs .. Total variable costs ....... Total tickets sold........ $2,400,000 .. $ 656,250 $1,350,000 75,000 110 Part II Cost Analysis and Estimation Required a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d....
The R the e sperienwiches: Relige Data concoming the three dicks is provided Big Boy ROSSINI...
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Larcker Manufacturing's cost accountant has provided you with the following information for January operations Direct materials...
Larcker Manufacturing's cost accountant has provided you with the following information for January operations Direct materials Fixed manufacturing overhead costs Sales prioe Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 38 per unit S 200,000 200 per unit 22 per unit 26 per unit S 200,000 S 5,000 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
7. Critical thinking and ethics The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: Chocolate Other Candy $40,000 26,000 14,000 Total Fudge $25,000 $35,000 $100,000 19,000 16,000 2,000 2,000 5.000 S7,000 Sales Cost of goods sold Contribution margin Delivery and ordering costs2,000 Rent (per sq. foot used) 3,000 Allocated corporate costs 5,000 Corporate profit 60.000 40,000 7,000 8,000 15,000 $10,000 15,000 10,000 3,000 3,000 5,000 s(1,000) $4,000 a. I pt-...
Larcker Manufacturing's cost accountant has provided you with
the following information for January operations.
Direct materials
$
36
per unit
Fixed manufacturing overhead costs
$
200,000
Sales price
$
200
per unit
Variable manufacturing overhead
$
19
per unit
Direct labor
$
32
per unit
Fixed marketing and administrative costs
$
185,000
Units produced and sold
$
5,500
Variable marketing and administrative costs
$
7
per unit
Required:
a. Prepare a gross margin income statement.
b. Prepare a contribution margin...
5. Slip-Shod Company manufactures and markets several products. Management is considering the future of one product, bootstraps that have not been as profitable as planned. Since this product is manufactu red and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for an $85 selling price per unit. The fixed costs for the year are expected to be $42,300, up to a capacity of 1,500 units. Forecasted variable costs are $38 per...
Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials 35 per unit $ 205,000 24 Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor 200 per unit 21 per unit 26 per unit $ 200,000 5,500 Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 9 per unit 2$ Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this...
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit Cookbook $65,000 38,000 27,000 20,000 4,000 8,000 $ (5,000) Travel Book $120,000 70,000 50,000 23,000 5,000 8,000 $14,000 Classics $52,000 24,000 28,000 13,000 5,000 8,000 $2,000 Total $237,000 132,000 105,000 56,000 14,000 24,000 $11,000 If the cookbook product line had been...
Volume (LO 3-1 3-26. Basic Decision Analysis Using CVP Anu's Amusement Center has collected the following data for operations for the year. S Total revenues ......... Total fixed costs .. Total variable costs ....... Total tickets sold........ $2,400,000 .. $ 656,250 $1,350,000 75,000 110 Part II Cost Analysis and Estimation Required a. What is the average selling price for a ticket? b. What is the average variable cost per ticket? c. What is the average contribution margin per ticket? d....
The R the e sperienwiches: Relige Data concoming the three dicks is provided Big Boy ROSSINI SUR SHOP DATA FOR PRODUCTS SOLD BY COMPANY Regular King Size Selling Price S 3.00 S 5.00 Variable Cost Per Sandwich S 2003 3.0 Sales Mix Perage 154 S S 5.00 155 The shop has monthly fixed costs of 530,000. The company has a marginalias me of 20% REQUIRED (1) What is the Sub Shop's weighied average contribution margin based on its current sales...
Larcker Manufacturing's cost accountant has provided you with the following information for January operations Direct materials Fixed manufacturing overhead costs Sales prioe Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 38 per unit S 200,000 200 per unit 22 per unit 26 per unit S 200,000 S 5,000 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
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