Question
In: Accounting
Speedy Bikes Couriers Company prepared the following static budget for the year: Static Budget Units/Volume 6...
Speedy Bikes Couriers Company prepared the following static budget for the year: Static Budget Units/Volume 6 comma 000 Per Unit Sales Revenue $ 5 $ 30 comma 000 Variable Costs 1 6 comma 000 Contribution Margin 24 comma 000 Fixed Costs 4 comma 000 Operating Income/(Loss) $ 20 comma 000 If a flexible budget is prepared at a volume of 7 comma 500, calculate the amount of operating income. The production level is within the relevant range. A. $ 20 comma 000 B. $ 4 comma 000 C. $ 26 comma 000 D. $ 7 comma 500
Solutions
Expert Solution
| Sales Revenue | 37500 | =7500*5 |
| Less: Variable Costs | 7500 | =7500*1 |
| Contribution Margin | 30000 | |
| Less: Fixed Cost | 4000 | |
| Operating Income | 26000 | |
| Option C $26,000 is correct |
ekkarill92 answered 2 years agoRelated Solutions
Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume 6 comma...
Reflector Glass Company prepared the following static budget for
the year:
Static Budget
Units/Volume
6 comma 0006,000
Per Unit
Sales Revenue
$ 5.00$5.00
$ 30 comma 000$30,000
Variable Costs
1.501.50
9 comma 0009,000
Contribution Margin
21 comma 00021,000
Fixed Costs
4 comma 0004,000
Operating Income/(Loss)
$ 17 comma 000$17,000
If a flexible budget is prepared at a volume of
8 comma 9008,900
units, calculate the amount of operating income. The production
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A.
$ 4...
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Static Budget
Per Unit
Total at 15,000 units
Sales
$60
$900,000
Less variable costs:
Manufacturing costs
(30)
(450,000)
Selling and administrative costs
(10)
(150,000)
Contribution margin
$20
$300,000
Less fixed costs:
Manufacturing costs
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Selling and administrative costs
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Total fixed costs
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Net income
$100,000
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Forecast Sales Volume and Sales Budget Raphael Frame Company prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget
Raphael Frame Company prepared the following sales budget for
2016:
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 2016
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East
8,500
$16
$136,000
Central
6,200
16
99,200
West
12,600
16
201,600
Total
27,300
$436,800
12" × 16" Frame:
East
3,800
$30
$114,000
Central
3,000
30
90,000
West
5,400
30
162,000
Total
12,200
$366,000
Total revenue from...
The sales-volume variance plus or minus the static budget amount results in A static budget variance...
The sales-volume variance plus or minus the static budget amount
results in
A static budget variance
The variable-budget amount
An unfavourable/favourable amount
The flexible budget amount
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statement based on sales volume of 1000 units the relevant range of
production is 500 units to 1500 units):Sales $95,000Variable expenses 5700contribution margin 38000fixed expenses 31,920Net operating income $60801. WHAT is the contribution margin per unit ?2.What is the contribution margin per ration?3.If sales increase to 1001,units what would be the increase in
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Company prepared the following contribution format income statement based on a sales volume of 1,000 units...
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statement based on a sales volume of 1,000 units (the relevant
range of production is 500 units to 1,500 units):
Sales
$
70,000
Variable expenses
38,500
Contribution margin
31,500
Fixed expenses
23,310
Net operating income
$
8,190
5. If sales decline to 900 units, what would be the net
operating income?
6. If the selling price increases by $2 per unit and the sales
volume decreases by 100 units, what would be the...
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For 20Y8, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y8, the following unit sales data were
reported for the year:
Unit Sales
8" × 10" Frame
12" × 16" Frame
East
21,012
12,064
Central
5,353
4,802
West
4,704
4,017
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...
Forecast Sales Volume and Sales Budget
For 20Y8, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y8, the following unit sales data were
reported for the year:
Unit Sales
8" × 10" Frame
12" × 16" Frame
East
23,278
14,456
Central
5,757
5,292
West
5,044
4,429
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that...
Forecast Sales Volume and Sales Budget
For 20Y6, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y6, the following unit sales data were
reported for the year:
Unit Sales
8" × 10"
Frame
12" × 16"
Frame
East
31,200
9,240
Central
7,956
3,626
West
6,984
3,090
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y6
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
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For 20Y6, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y6, the following unit sales data were
reported for the year:
Unit Sales
8" × 10"
Frame
12" × 16"
Frame
East
26,355
9,010
Central
6,695
3,626
West
5,820
3,060
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y6
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
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