Question
In: Accounting
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales...
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows.
| Sales (240,000 units) | $1,200,000 | ||||
| Cost of goods sold | 800,000 | ||||
| Gross profit | 400,000 | ||||
| Operating expenses | |||||
| Selling | $280,000 | ||||
| Administrative | 156,000 | ||||
| 436,000 | |||||
| Net loss | $(36,000 | ) |
A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.
1) Compute the break-even point in total sales dollars for 2020.
2) Blossom has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.30 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Blossom estimates that sales volume will increase by 25%. Compute the net income under Blossom's proposal and the break-even point in dollars
Solutions
ekkarill92 answered 11 months agoRelated Solutions
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales...
The condensed income statement for the Blossom and Paul
partnership for 2020 is as follows.
Sales (240,000 units)
$1,200,000
Cost of goods sold
800,000
Gross profit
400,000
Operating expenses
Selling
$280,000
Administrative
156,000
436,000
Net loss
$(36,000
)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 42% of the selling expenses are variable, and
40% of the administrative expenses are variable.
1) Compute the break-even point in total sales dollars for
2020.
2)...
The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Blossom...
The condensed income statement for the Blossom and Paul
partnership for 2020 is as follows. Blossom and Paul Company Income
Statement For the Year Ended December 31, 2020 Sales (270,000
units) $1,350,000 Cost of goods sold 864,000 Gross profit 486,000
Operating expenses Selling $315,000 Administrative 175,500 490,500
Net loss $(4,500 ) A cost behavior analysis indicates that 75% of
the cost of goods sold are variable, 42% of the selling expenses
are variable, and 40% of the administrative expenses are...
The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole...
The condensed income statement for the Oriole and Paul
partnership for 2020 is as follows.
Oriole and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (300,000 units)
$1,500,000
Cost of goods sold
960,000
Gross profit
540,000
Operating expenses
Selling
$350,000
Administrative
232,500
582,500
Net loss
$(42,500
)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 42% of the selling expenses are variable, and
40% of the administrative expenses are...
The condensed income statement for the Peri and Paul partnership for 2017 is as follows. PERI...
The condensed income statement for the Peri and Paul partnership
for 2017 is as follows. PERI AND PAUL COMPANY Income Statement For
the Year Ended December 31, 2017 Sales (240,000 units) $1,200,000
Cost of goods sold 800,000 Gross profit 400,000 Operating expenses
Selling $280,000 Administrative 150,000 430,000 Net loss $(30,000 )
A cost behavior analysis indicates that 65% of the cost of goods
sold are variable, 45% of the selling expenses are variable, and
44% of the administrative expenses are...
The condensed income statement for the Peri and Paul partnership for 2017 is as follows. PERI...
The condensed income statement for the Peri and Paul partnership
for 2017 is as follows. PERI AND PAUL COMPANY Income Statement For
the Year Ended December 31, 2017 Sales (240,000 units) $1,200,000
Cost of goods sold 800,000 Gross profit 400,000 Operating expenses
Selling $280,000 Administrative 150,000 430,000 Net loss $(30,000 )
A cost behavior analysis indicates that 65% of the cost of goods
sold are variable, 45% of the selling expenses are variable, and
44% of the administrative expenses are...
The condensed income statement for the Peri and Paul partnership for 2017 is as follows. PERI...
The condensed income statement for the Peri and Paul partnership
for 2017 is as follows.
PERI AND PAUL COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales (240,000
units)
$1,200,000
Cost of goods
sold
800,000
Gross
profit
400,000
Operating
expenses
Selling
$280,000
Administrative
150,000
430,000
Net
loss
$(30,000
)
A cost behavior analysis indicates that 70% of the cost of goods
sold are variable, 43% of the selling expenses are variable, and
39% of the administrative expenses are...
The condensed budgeted income statement for the Phan and Nguyen partnership for 2020 is as follows:...
The condensed budgeted income statement for the Phan and Nguyen
partnership for 2020 is as follows:
PHAN AND NGUYEN LLP
Income Statement
Year Ending December 31, 2020
Sales (240,000 units)
$1,200,000
Cost of goods sold
800,000
Gross profit
400,000
Operating expenses
Selling
$280,000
Administrative
150,000
430,000
Net loss
$(30,000)
A cost behaviour analysis indicates that 75% of the cost of goods
sold is variable, 42% of the selling expenses are variable, and 40%
of the administrative expenses are variable. (Use...
The condensed income statement for the Terri and Jerri partnership for 2010 is as follows. TERRI...
The condensed income statement for the Terri and Jerri
partnership for 2010 is as follows.
TERRI AND JERRI COMPANY
Income Statement
For the Year Ended December 31, 2010
Sales (200,000 units)
Cost of goods sold
Gross Profit
Operating expenses
Selling
Administrative
Net Loss
$280,000
160,000
$1,200,000
800,000
400,000
440,000
($40,000)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 50% of the selling expenses are variable, and
25% of the administrative expenses are variable....
Problem 2-6A Condensed balance sheet and income statement data for Blossom Company are presented as follows....
Problem 2-6A Condensed balance sheet and income statement data
for Blossom Company are presented as follows.
Blossom Company Balance Sheets December 31
Assets 2017 and 2016 (respectively)
Cash $ 30,700 $ 22,700
Receivables (net) 82,100 74,100
Other current assets 102,100 85,100
Long-term investments 62,000 60,000
Property, plant, and equipment (net) 522,100 482,100
Total assets $ 799,000 724,000
Liabilities and Stockholders’ Equity
Current liabilities $ 77,700 $ 72,700
Long-term liabilities 92,100 102,100
Common stock 342,100 312,100
Retained earnings 287,100 237,100
Total...
1) The condensed income statement for a business for the past year is presented as follows:
1) The condensed income statement for a business for the past year is presented as follows:
Product
F
G
H
Total
Sales
$200,000
$180,000
$320,000
$700,000
Less variable costs
120,000
160,000
200,000
480,000
Contribution margin
$ 80,000
$ 20,000
$120,000
$220,00
Less fixed costs
25,000
30,000
40,000
95,000
Income (Loss) from Operations
55,000
10,000
80,000
125,000
Management is considering the discontinuance of the manufacture and sale of Product G at the...
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