Question
In: Accounting
Company XYZ is a merchandising business. The company is specialized in selling a specific brand of...
Company XYZ is a merchandising business. The company
is specialized in selling a specific brand of smartphones.
The
purchase cost per unit was OMR260. At the beginning of the month of
May the company has inventory of 1,210 smartphones.
During the month of May, the company purchased additional 1,000
smartphones. By the end of May, the company had 490
smartphones remaining in the store. The selling and general
expenses for the company include wages and commissions, which
include fixed monthly payment of OMR1,100 plus a OMR4 per unit
sold; and depreciation of OMR2,000 per month. Assuming
a selling price per unit of OMR520, calculate the total
contribution margin
Solutions
Expert Solution
| Sales price per unit | 520 |
| Less: purchase cost | (260) |
| Less: variable wages and commissions | (4) |
| Contribution | 256 |
| Unit sold | 1,720 |
| Total contribution | 440,320 |
| Opening inventory | 1,210 |
| Purchases | 1,000 |
| Less: closing inventory | (490) |
| Sales unit | 1,720 |
Contribution = sales month- variables for the month
ekkarill92 answered 1 year agoRelated Solutions
XYZ company has been in the toys business for more than 10 years. XYZ is a reputable company and has a very strong brand name. However, the
XYZ company has been in the toys business for more than 10 years. XYZ is a reputable company and has a very strong brand name. However, the competition increased in the last 5 years forcing XYZ to invest on creating unique and novel toys in order to retain its current customers and attract new ones. In the above case XYZ used its capital for :*a. Business Start-upb. Paying short-term expensesc. Purchasing of fixed assetsd. Business-expansion
The XYZ Company purchased a specialized machine three years ago for $25,000. This machine is not...
The XYZ Company purchased a specialized machine three years ago
for $25,000. This machine is not readily resalable and thus assumed
to have a salvage value of $0. Operating costs are expected to be
$10,000 next year and to increase by $800 per year thereafter (the
‘G’ term). The company has an opportunity to replace this machine
with another specialized one for a cost of $12,000. This machine
also has no salvage value, a useful life of 10 years, and...
1. In November, Mazoon company., a merchandising company, had sales of $294,000, selling expenses of $27,000,...
1. In November, Mazoon company., a merchandising company, had
sales of $294,000, selling expenses of $27,000, and administrative
expenses of $35,000. The cost of merchandise purchased during the
month was $211,000. The beginning balance in the merchandise
inventory account was $38,000 and the ending balance was
$34,000.
Required:
Prepare a traditional format income statement for November.
2. Majan company shared the following data for a number of
recent months:
Products Return
April 24 $2,972
May 23 $2,928
June 27 $3,141...
Whitman Corporation, a merchandising company, reported sales of 12,100 units for May at a selling price...
Whitman Corporation, a merchandising company, reported sales of
12,100 units for May at a selling price of $714 per unit. The cost
of goods sold (all variable) was $448 per unit and the variable
selling expense was $63 per unit. The total fixed selling expense
was $163,800. The variable administrative expense was $28 per unit
and the total fixed administrative expense was $376,100.
Required:
a.
Prepare a contribution format income statement for May.
(Input all amounts as positive values. Omit...
Whitman Corporation, a merchandising company, reported sales of 17,300 units for May at a selling price...
Whitman Corporation, a merchandising company, reported sales of
17,300 units for May at a selling price of $693 per unit. The cost
of goods sold (all variable) was $495 per unit and the variable
selling expense was $55 per unit. The total fixed selling expense
was $155,900. The variable administrative expense was $33 per unit
and the total fixed administrative expense was $378,100.
Required:
a.
Prepare a contribution format income statement for May.
(Input all amounts as positive values. Omit...
Tom is the brand manager of a major real estate company selling residential apartments in the...
Tom is the brand manager of a major real estate company selling
residential apartments in the United Arab Emirates. Discuss at
least three applications of his knowledge of price
elasticity of demand that can influence the profitability of his
brand.
Alex Home Supplies Inc. is specialized in selling paint, carpet, and flooring supplies. Company has experienced...
Alex Home Supplies Inc. is specialized in selling paint, carpet,
and flooring supplies. Company has experienced net operating losses
in its Flooring Supplies line during the last few periods. Company
management team thinks that the store will improve its
profitability if it discontinued the Flooring Supplies line. The
operating results from the most recent period are as follows.
Currently, the store support expenses are allocated among the
three product line based on sales dollars of the product lines.
Product Profitability...
Scenario: A pharmaceutical company is going to be selling a new brand-name prescription drug to treat...
Scenario: A pharmaceutical company is going to be selling a new
brand-name prescription drug to treat allergies. You have been
hired to help them market this product to individual and industry
consumers.
Describe one individual and one industry consumer for the
prescription drug product in the provided scenario. Analyze buying
behaviors and characteristics of these consumers. Then, recommend
strategies to market this product to the consumers you identified.
Include strategies for the different stages of the product’s life
cycle. Defend...
XYZ Company began operations in May, 2018 by selling common stock to owners in exchange for...
XYZ Company began operations in May, 2018 by selling common stock to
owners in exchange for $90,000 cash. During 2018, ABC Company entered
into the following transactions:
1. On May 23, ABC Company purchased inventory for $50,000 cash.
2. On June 1, ABC Company purchased a three-year insurance policy
for $23,400 cash.
3. On July 1, ABC Company received $49,500 cash from a customer
for services to be performed over the next 18 months.
4. On August 1, ABC Company...
XYZ Company began operations in May, 2018 by selling common stock to owners in exchange for...
XYZ Company began operations in May, 2018 by selling common stock to
owners in exchange for $90,000 cash. During 2018, ABC Company entered
into the following transactions:
1. On May 23, ABC Company purchased inventory for $50,000 cash.
2. On June 1, ABC Company purchased a three-year insurance policy
for $23,400 cash.
3. On July 1, ABC Company received $49,500 cash from a customer
for services to be performed over the next 18 months.
4. On August 1, ABC Company...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Discuss the significance of a proposal What elements do you think are needed for the proposal...
- 1) Given the following equations: QD = 5,000 + 0.5 I + 0.2 A -...
- How has the Supreme Court's Citizens United decision changed campaigns in America? (long answer is appreciated...
- You are a Derivatives Trader at a major Broker-Dealer. At the end of the week you...
- What are the two reasons that limit the ability of correlational studies to provide information on...
- Suppose that 20 monthly payments of $100 each are followed by 30 monthly payments of $200...
- D. Explain what it means for recommendations to be specific and actionable. E. Discuss how charts...
ADVERTISEMENT