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In: Accounting
Below is the 2009 contribution income statement of a company. Contribution Income Statement For Year Ended...
Below is the 2009 contribution income statement of a company.
Contribution Income Statement For Year Ended December 31, 2009 |
||
|---|---|---|
| Sales (12,000 units) | $1,440,000 | |
| Less variable costs | ||
| Cost of goods sold | $480,000 | |
| Selling and administrative | 132,000 | (612,000) |
| Contribution margin | 828,000 | |
| Less fixed costs | ||
| Manufacturing overhead | 510,000 | |
| Selling and administrative | 220,000 | (730,000) |
| Net income | $98,000 | |
During the coming year, the company expects an increase in
variable manufacturing costs of $8 per unit and in fixed
manufacturing costs of $72,000.
(a) If sales for 2010 remain at 12,000 units, what price
should Colgate charge to obtain the same profit as last year?
$______
(b) Management believes that sales can be increased to
16,000 units if the selling price is lowered to $109. What would be
the excepted profit (or loss) as a result of this action? Use a
negative sign with your answer, if appropriate.
______
(c) After considering the expected increases in costs, what
sales volume is needed to earn a profit of $98,000 with a unit
selling price of $109?
_____
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Presented is the 2009 contribution income statement of Colgate Products. COLGATE PRODUCTS Contribution Income Statement For...
Presented is the 2009 contribution income statement of Colgate
Products.
COLGATE PRODUCTS
Contribution Income Statement
For Year Ended December 31, 2009
Sales (12,000 units)
$1,440,000
Less variable costs
Cost of goods sold
$480,000
Selling and administrative
132,000
(612,000)
Contribution margin
828,000
Less fixed costs
Manufacturing overhead
530,000
Selling and administrative
200,000
(730,000)
Net income
$98,000
Next year, Colgate expects an increase in variable manufacturing
costs of $6 per unit and in fixed manufacturing costs of
$48,000.
(a) If sales for...
Presented is the 2009 contribution income statement of Colgate Products. COLGATE PRODUCTS Contribution Income Statement For...
Presented is the 2009 contribution income statement of Colgate
Products.
COLGATE PRODUCTS Contribution Income Statement For Year Ended
December 31, 2009
Sales (18,000 units) $2,160,000
Less variable costs Cost of goods sold $720,000 Selling and
administrative 198,000 (918,000)
Contribution margin 1,242,000
Less fixed costs Manufacturing overhead 750,000 Selling and
administrative 320,000 (1,070,000)
Net income $172,000
During the coming year, Colgate expects an increase in
variable manufacturing costs of $8 per unit and in fixed
manufacturing costs of $108,000.
(a) If...
Presented is the 2009 contribution income statement of Colgate Products. COLGATE PRODUCTS Contribution Income Statement For...
Presented is the 2009 contribution income statement of Colgate
Products. COLGATE PRODUCTS Contribution Income Statement For Year
Ended December 31, 2009 Sales (18,000 units) $2,160,000 Less
variable costs Cost of goods sold $720,000 Selling and
administrative 198,000 (918,000) Contribution margin 1,242,000 Less
fixed costs Manufacturing overhead 750,000 Selling and
administrative 320,000 (1,070,000) Net income $172,000 During the
coming year, Colgate expects an increase in variable manufacturing
costs of $8 per unit and in fixed manufacturing costs of $108,000.
(a) If...
Income Statement - Cover-to-Cover Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31,...
Income Statement - Cover-to-Cover
Cover-to-Cover Company
Contribution Margin Income Statement
For the Year Ended December 31, 20Y8
Sales
$374,000
Variable costs:
Manufacturing expense
$224,400
Selling expense
18,700
Administrative expense
56,100
(299,200)
Contribution margin
$74,800
Fixed costs:
Manufacturing expense
$5,000
Selling expense
4,000
Administrative expense
9,700
(18,700)
Operating income
$56,100
Income Statement - Biblio Files
Biblio Files Company
Contribution Margin Income Statement
For the Year Ended December 31, 20Y8
Sales
$374,000
Variable costs:
Manufacturing expense
$149,600
Selling expense
14,960
Administrative expense...
SAXTON COMPANY Income Statement For the Year Ended December 31, 2009 Sales (all on credit) ……………………………………………………………...
SAXTON COMPANY
Income Statement For the Year Ended December 31, 2009
Sales (all on credit) …………………………………………………………… $ 4,000,000
Cost of Goods Sold…………………………………………………………………3,000,000
Gross Profit………………………………………………………………………….$ 1,000,000
Selling and Administrative Expenses……………………………………. 450,000
Operating Profit ……………………………………………………………………$ 550,000
Interest Expense…………………………………………………………………… 50,000
Extraordinary Loss…………………………………………………………………. 200,000
Earnings Before Taxes……………………………………………………………$ 300,000
Income Taxes (33%)………………………………………………………………. 100,000
Net Income…………………………………………………………………………….$ 200,000
SAXTON COMPANY
Balance Sheet As of December 31, 2009
Assets Cash…………………………………………………………………………… $ 30,000
Accounts Receivable………………………………………………….. 350,000
Marketable Securities ……………………………………………….. 50,000
Inventory……………………………………………………………………. 370,000
Total Current Assets……………………………………………………. $ 800,000
Net Plant...
The contribution format income statement for The Company for last year is given below: Total Unit...
The contribution format income statement for The Company for
last year is given below:
Total
Unit
Sales
$
994,000
$
49.70
Variable expenses
596,400
29.82
Contribution margin
397,600
19.88
Fixed expenses
319,600
15.98
Net operating income
78,000
3.90
Income taxes @ 40%
31,200
1.56
Net income
$
46,800
$
2.34
The company had average operating assets of $510,000 during the
year.
Required:
1. Compute the company’s return on investment (ROI) for the
period using the ROI formula stated in terms...
Presented below is an income statement for Kinder Company for the year ended December 31, 2015....
Presented below is an income statement for Kinder Company for
the year ended December 31, 2015.
Kinder Company
Income Statement
For the Year Ended December 31, 2015
Net
sales
$850,000
Costs and expenses:
Cost of goods
sold
640,000
Selling, general, and
administrative
expenses
70,000
Other,
net
20,000 730,000
Income before income
taxes
120,000
Income
taxes
36,000
Net
income
$ 84,000
Additional information:
1. "Selling, general, and
administrative expenses" included a charge of $7,000 for impairment...
The contribution format income statement for Huerra Company for last year is given below: Total Unit...
The contribution format income statement for Huerra Company for
last year is given below:
Total
Unit
Sales
$
996,000
$
49.80
Variable expenses
597,600
29.88
Contribution margin
398,400
19.92
Fixed expenses
316,400
15.82
Net operating income
82,000
4.10
Income taxes @ 40%
32,800
1.64
Net income
$
49,200
$
2.46
The company had average operating assets of $502,000 during the
year.
Required:
1. Compute the company’s return on investment (ROI) for the
period using the ROI formula stated in terms...
The contribution format income statement for Huerra Company for last year is given below: Total Unit...
The contribution format income statement for Huerra
Company for last year is given below: Total Unit Sales $ 4,000,000
$ 80.00 Variable expenses 2,800,000 56.00 Contribution margin
1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income
360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $
5.04 The company had average operating assets of $2,000,000 during
the year. Required: 1. Compute the company’s return on investment
(ROI) for the period using the ROI formula stated in terms...
The contribution format income statement for Huerra Company for last year is given below: Total Unit...
The contribution format income statement for Huerra Company for
last year is given below:
Total
Unit
Sales
$
1,002,000
$
50.10
Variable expenses
601,200
30.06
Contribution margin
400,800
20.04
Fixed expenses
320,800
16.04
Net operating income
80,000
4.00
Income taxes @ 40%
32,000
1.60
Net income
$
48,000
$
2.40
The company had average operating assets of $502,000 during the
year.
Required:
1. Compute the company’s return on investment (ROI) for the
period using the ROI formula stated in terms...
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