Crane Computer Company, in addition to its retail sales, conducts night classes in computer technology. Crane...

Crane Computer Company, in addition to its retail sales, conducts night classes in computer technology. Crane has provided you the following information:

Number of students	122
Revenue per student	$500
Student-related variable costs	$120	per student
Salary for three instructors	$2,000	each
Administrative costs	$50	per student
Factory fixed costs	$15,200	per year

Construct a contribution margin format income statement.

Expert Solution

Contribution margin format income statement.

Revenue (122 x $500)		61,000
Less: Variable Costs
Student-related variable costs (122 x $120)	14,640
Administrative costs (122 x $50)	6,100	20,740
Contribution Margin		40,260
Less: Fixed Costs
Salary for three instructors ($2,000 x 3)	6,000
Factory fixed costs	15,200	21,200
Net Operating Income		19,060

ekkarill92 answered 7 months ago

6. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following...

6. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: Cost Retail Beginning inventory $ 60,000 $ 90,000 Purchases 380,000 520,000 Freight-in 5,000 — Net markups — 17,000 Net markdowns — 20,000 Sales revenue — 410,000 What is the cost of ending inventory using the conventional method?

You are the vice president of finance of Crane Corporation, a retail company that prepared two...

You are the vice president of finance of Crane Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2020. These schedules appear below. Sales ($5 per unit) Cost of Goods Sold Gross Margin Schedule 1 $159,900 $135,482 $24,418 Schedule 2 159,900 140,046 19,854 The computation of cost of goods sold in each schedule is based on the following data. Units Cost per Unit Total Cost Beginning inventory, January 1 10,050...

The CEO of a computer hardware company notices that its sales are concentrated at the beginning...

The CEO of a computer hardware company notices that its sales are concentrated at the beginning of each quarter and at the end of each quarter, with few sales in the middle. Sales at the beginning of the quarter and at the end of the quarter have much lower prices, about 10% lower than earlier sales. Why?

Ivanhoe Inc. operates a retail computer store. To improve its delivery services to customers, the company...

Ivanhoe Inc. operates a retail computer store. To improve its delivery services to customers, the company purchased four new trucks on April 1, 2020. The terms of acquisition for each truck were as follows: 1. Truck #1 had a list price of $27,200 and was acquired for a cash payment of $25,500. 2. Truck #2 had a list price of $28,800 and was acquired for a down payment of $2,100 cash and a non–interest-bearing note with a face amount of...

A used celebrity guitar business conducts most of its sales via its website.

1: A used celebrity guitar business conducts most of its sales via its website. Its warehouse and office operations are housed in a large building, which is insured under a BPP. The office contains the company’s servers, currently valued at $300,000. Two years ago, the company purchased a separate electronic data processing (EDP) equipment policy to cover its computer hardware. The company has kept the policy in force, but it has not increased the original $200,000 amount of insurance. A...

Pardon Company, a retail entity makes all of its sales to customers on account and purchases...

Pardon Company, a retail entity makes all of its sales to customers on account and purchases 100% of its Merchandise Inventory on account from vendor, Power Company. Pardon provides you with the following selected account balances all of which are normal: 12/31/2018 12/31/2019 Accounts Receivable $32,000 $28,000 Merchandise Inventory 70,000 82,000 Prepaid Insurance Expense 6,500 5,800 Supplies 12,000 9,000 Equipment 130,000 115,000 Accumulated Depreciation 78,000 86,000 Accounts Payable- Power Company 26,000 40,000 Salaries Payable 3,200 5,400 Sales Revenue $615,000 Gain...

The XYZ Corporation conducts sales of its product (a range of bicycles) via its Internet Web...

The XYZ Corporation conducts sales of its product (a range of bicycles) via its Internet Web site and also via several physical stores. The business also has a HRM department, a call centre, a manufacturing centre (producing bicycles), a sales department, and several suppliers of component parts for its bicycles. When considering the CRM for this business, how would an analyst define ‘touch points’ and what would these ‘touch points’ be for XYZ? . Why would we then define this...

Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements....

Crane Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2021. Inventory, October 1, 2021 At cost $50,900 At retail 78,600 Purchases (exclusive of freight and returns) At cost 270,540 At retail 426,400 Freight-in 16,900 Purchase returns At cost 5,700 At retail 7,900 Markups 8,900 Markup cancellations 2,000 Markdowns (net) 3,500 Normal spoilage and breakage 10,000 Sales revenue 384,700 (a) Using...

PART C: Profit Planning Kamel Company is a chain of retail outlets selling closing, its sales...

PART C: Profit Planning Kamel Company is a chain of retail outlets selling closing, its sales have increased from $370 million to $780 million over the last five years. The company’s gross profit is currently 20% of sales, the mark-up on the cost of goods and retail store running costs is 25%. Corporate overhead is $22 million and the operating profit is $134 million. The company’ finance director has produced a budget, which has been approved by the board of...

Lanier Company manufactures expensive watch cases sold as souvenirs. Three of its sales departments are Retail...

Lanier Company manufactures expensive watch cases sold as souvenirs. Three of its sales departments are Retail Sales, Wholesale Sales, and Outlet Sales. The Retail Sales Department is a profit center. The Wholesale Sales Department is a cost center. Its managers merely take orders from customers who purchase through the company’s wholesale catalog. The Outlet Sales Department is an investment center because each manager is given full responsibility for an outlet store location. The manager can hire and discharge employees, purchase,...

Question