Question
In: Accounting
ABC Company reported the following information for 2019: Sales ............................... 14,000 units Margin .............................. 25% Variable...
ABC Company reported the following information for 2019: Sales ............................... 14,000 units Margin .............................. 25% Variable cost per unit .............. $8.80 Average operating assets ............ $550,000 Return on investment ................ 14% Minimum required rate of return ..... 9% Management of ABC Company is beginning to budget for 2020 and would like answers to some what-if scenarios. Calculate the number of units ABC Company needed to sell in 2019 in order for its residual income to be 204% larger than what was reported.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
ABC Company has the following projected sales: Month Sales Jan $5,000 Feb $14,000...
ABC Company has the following projected sales:
Month
Sales
Jan
$5,000
Feb
$14,000
Mar
$27,000
Apr
$56,000
14% of the sales are collected in the same month. 26% of the sales
are collected after one month, 42% of the sales are collected after
two months, and the remainder are collected after three month. What
is the amount of the April collections?
Enter your answer rounded off to two decimal points. Do not
enter $ or...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
240,000
Beginning merchandise inventory
$
16,000
Purchases
$
160,000
Ending merchandise inventory
$
8,000
Fixed selling expense
$
?
Fixed administrative expense
$
9,600
Variable selling expense
$
12,000
Variable administrative expense
$
?
Contribution margin
$
48,000
Net operating income
$
14,400
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
210,000
Beginning merchandise inventory
$
14,000
Purchases
$
140,000
Ending merchandise inventory
$
7,000
Fixed selling expense
$
?
Fixed administrative expense
$
8,400
Variable selling expense
$
10,500
Variable administrative expense
$
?
Contribution margin
$
42,000
Net operating income
$
12,600
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold: Sales $ 345,000 Beginning
merchandise inventory $ 23,000 Purchases $ 230,000 Ending
merchandise inventory $ 11,500 Fixed selling expense $ ? Fixed
administrative expense $ 13,800 Variable selling expense $ 17,250
Variable administrative expense $ ? Contribution margin $ 69,000
Net operating income $ 20,700 Required: 1. Prepare a contribution
format income statement. 2. Prepare a traditional format income
statement. 3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
450,000
Beginning merchandise inventory
$
30,000
Purchases
$
300,000
Ending merchandise inventory
$
15,000
Fixed selling expense
$
?
Fixed administrative expense
$
18,000
Variable selling expense
$
22,500
Variable administrative expense
$
?
Contribution margin
$
90,000
Net operating income
$
27,000
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
225,000
Beginning merchandise inventory
$
15,000
Purchases
$
150,000
Ending merchandise inventory
$
7,500
Fixed selling expense
$
?
Fixed administrative expense
$
9,000
Variable selling expense
$
11,250
Variable administrative expense
$
?
Contribution margin
$
45,000
Net operating income
$
13,500
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold: Sales $ 405,000 Beginning
merchandise inventory $ 27,000 Purchases $ 270,000 Ending
merchandise inventory $ 13,500 Fixed selling expense $ ? Fixed
administrative expense $ 16,200 Variable selling expense $ 20,250
Variable administrative expense $ ? Contribution margin $ 81,000
Net operating income $ 24,300
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price per...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
285,000
Beginning merchandise inventory
$
19,000
Purchases
$
190,000
Ending merchandise inventory
$
9,500
Fixed selling expense
$
?
Fixed administrative expense
$
11,400
Variable selling expense
$
14,250
Variable administrative expense
$
?
Contribution margin
$
57,000
Net operating income
$
17,100
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement
Prepare a contribution format income...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
255,000
Beginning merchandise inventory
$
17,000
Purchases
$
170,000
Ending merchandise inventory
$
8,500
Fixed selling expense
$
?
Fixed administrative expense
$
10,200
Variable selling expense
$
12,750
Variable administrative expense
$
?
Contribution margin
$
51,000
Net operating income
$
15,300
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
360,000
Beginning merchandise inventory
$
24,000
Purchases
$
240,000
Ending merchandise inventory
$
12,000
Fixed selling expense
$
?
Fixed administrative expense
$
14,400
Variable selling expense
$
18,000
Variable administrative expense
$
?
Contribution margin
$
72,000
Net operating income
$
21,600
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price...
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