Homework Answers
| Income Statement | |||||
| Foxx Company | Beyonce Inc. | ||||
| Sales | $ 600,000 | $ 600,000 | |||
| Less: Variable Cost | $ 450,000 | $ 120,000 | |||
| Contribution Margin | $ 150,000 | 25% of Sales | $ 480,000 | 80% of Sales | |
| Less: Fixed Expenses | $ 100,000 | $ 400,000 | |||
| Net Operating Income | $ 50,000 | $ 80,000 | |||
| As the requirement of the question was not properly described I have given answer in both ways | |||||
| A. Net Operating incomes for all Sales Levels | |||||
| Sales | NOI | NOI | |||
| $ 100,000 | $ (75,000) | $ (320,000) | |||
| $ 200,000 | $ (50,000) | $ (240,000) | |||
| $ 300,000 | $ (25,000) | $ (160,000) | |||
| $ 400,000 | $ - | $ (80,000) | |||
| $ 500,000 | $ 25,000 | $ - | |||
| $ 600,000 | $ 50,000 | $ 80,000 | |||
| $ 700,000 | $ 75,000 | $ 160,000 | |||
| $ 800,000 | $ 100,000 | $ 240,000 | |||
| $ 900,000 | $ 125,000 | $ 320,000 | |||
| $ 1,000,000 | $ 150,000 | $ 400,000 | |||
| $ 1,100,000 | $ 175,000 | $ 480,000 | |||
| $ 1,200,000 | $ 200,000 | $ 560,000 | |||
| $ 1,300,000 | $ 225,000 | $ 640,000 | |||
| $ 1,400,000 | $ 250,000 | $ 720,000 | |||
| $ 1,500,000 | $ 275,000 | $ 800,000 | |||
| $ 1,600,000 | $ 300,000 | $ 880,000 | |||
| $ 1,700,000 | $ 325,000 | $ 960,000 | |||
| $ 1,800,000 | $ 350,000 | $ 1,040,000 | |||
| $ 1,900,000 | $ 375,000 | $ 1,120,000 | |||
| $ 2,000,000 | $ 400,000 | $ 1,200,000 | |||
| B. Sales Required for earning the following amounts of NOI | |||||
| NOI | Sales | Sales | |||
| $ 100,000 | $ 800,000 | $ 625,000 | |||
| $ 200,000 | $ 1,200,000 | $ 750,000 | |||
| $ 300,000 | $ 1,600,000 | $ 875,000 | |||
| $ 400,000 | $ 2,000,000 | $ 1,000,000 | |||
| $ 500,000 | $ 2,400,000 | $ 1,125,000 | |||
| $ 600,000 | $ 2,800,000 | $ 1,250,000 | |||
| $ 700,000 | $ 3,200,000 | $ 1,375,000 | |||
| $ 800,000 | $ 3,600,000 | $ 1,500,000 | |||
| $ 900,000 | $ 4,000,000 | $ 1,625,000 | |||
| $ 1,000,000 | $ 4,400,000 | $ 1,750,000 | |||
| $ 1,100,000 | $ 4,800,000 | $ 1,875,000 | |||
| $ 1,200,000 | $ 5,200,000 | $ 2,000,000 | |||
| $ 1,300,000 | $ 5,600,000 | $ 2,125,000 | |||
| $ 1,400,000 | $ 6,000,000 | $ 2,250,000 | |||
| $ 1,500,000 | $ 6,400,000 | $ 2,375,000 | |||
| $ 1,600,000 | $ 6,800,000 | $ 2,500,000 | |||
| $ 1,700,000 | $ 7,200,000 | $ 2,625,000 | |||
| $ 1,800,000 | $ 7,600,000 | $ 2,750,000 | |||
| $ 1,900,000 | $ 8,000,000 | $ 2,875,000 | |||
| $ 2,000,000 | $ 8,400,000 | $ 3,000,000 | |||
Add Answer to:
Contribution Margin Fixed Cost Foxx Company 0.25 100,000 Beyonce. In 0.8 400,000 $ $ Sales $...
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed...
A company sells a product with a contribution margin ratio of
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750,000 1250,000 Contribution margin Fixed costs Income from operations $500,000 $750,000 400,000 $100,000 $300,000 o. Compute the operating leverage for Beck Inc. and Bryant inc, If required, round to one decimal place Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the 2.5 V sales of each increased by 20%71 required round answers to nearest whole number Dollars Percentage Beck Inc. Bryant Inc. operations is due to the difference in the operating leverages....
ACCT 2301 Contribution Income Statements Handout #10 Flint Company operates a boutique clothing boutique clothing store,...
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Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales............
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need help with required 2 Chapter 6 Homework Saved Check my work mode: This shows what...
need help with required 2
Chapter 6 Homework Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indic 16 Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. 3 points $3,600,000 Sales (80,000 units - $45 per unit) Cost of goods sold Beginning inventory Cost of goods...
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed...
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The contribution format income statement for Huecia Company for last year is given below: Unit Sales...
The contribution format income statement for Huecia Company for last year is given below: Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net operating income Total $4,000,000 2,800,000 1,200,000 840,000 360,000 108,000 $ 252,000 $80.00 56.00 24.00 16.80 7.20 2.16 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of...
A company sells a product with a contribution margin ratio of
20%. The company's monthly fixed expense is $400,000 and the
company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
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Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
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unit...
Company A is a manufacturer with sales of $4,000,000 and a 60% contribution margin. Its fixed costs equal $1,800,000. Company B is a consulting firm with service revenues of $3,900,000 and a 25% contribution margin. Its fixed costs equal $400,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales Complete this question by entering your answers in the tabs below. Company Benefits DOL Compute the degree of operating leverage...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
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ACCT 2301 Contribution Income Statements Handout #10 Flint Company operates a boutique clothing boutique clothing store, which purchases men's and women's specialty apparel. Flint Company reported the following operating results for 2012: Income Statement Sales revenue Cost of goods sold Gross margin Employee commissions and bonuses (5% of sales) Depreciation expense Salaries expense Shipping and delivery expense (2% of sales) Advertising expense Net income $2,000,000 (1.200.000) $ 800,000 ( 100,000) (150,000) (260,000) 40,000) 80,000) $ 170,000 Required Part 1: Prepare...
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man L03 43. Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2018. for $1.200,000. The purchase price was $650,000 in excess of the subsidiary's $550,000 book value of Stockholders' Equity on the acquisi tion date. Of this excess purchase price, $250,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $400,000 was assigned to Goodwill. On the acquisition...
need help with required 2
Chapter 6 Homework Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indic 16 Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows. 3 points $3,600,000 Sales (80,000 units - $45 per unit) Cost of goods sold Beginning inventory Cost of goods...
Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $ 420,000 70% of sales $ 252,000 The company's minimum required rate of return is 10%. 4. What is the margin related...
The contribution format income statement for Huecia Company for last year is given below: Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net operating income Total $4,000,000 2,800,000 1,200,000 840,000 360,000 108,000 $ 252,000 $80.00 56.00 24.00 16.80 7.20 2.16 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of...
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