Calendars imprints calendars with college names. The company has fixed expenses of

$ 1 comma 065 comma 000$1,065,000

each month plus variable expenses of

$ 3.50$3.50

per carton of calendars. Of the variable? expense,

7575?%

is cost of goods?sold, while the remaining

2525?%

relates to variable operating expenses. The company sells each carton of calendars for

$ 13.50$13.50.

Read the

requirements

LOADING...

.

Requirement 1. Compute the number of cartons of calendars that

College SpiritCollege Spirit

Calendars must sell each month to breakeven.??

Begin by determining the basic income statement equation.

Using the basic income statement equation you determined above solve for the number of cartons to break even.

Requirement 2. Compute the dollar amount of monthly sales

College SpiritCollege Spirit

Calendars needs in order to earn

$ 304 comma 000$304,000

in operating income.??

Begin by determining the formula.

?(Round the contribution margin ratio to two decimal? places.)

Requirement 3. Prepare the? company's contribution margin income statement for June for sales of

460 comma 000460,000

cartons of calendars.

??

Requirement 4. What is? June's margin of safety? (in dollars)? What is the operating leverage factor at this level of? sales?

Begin by determining the formula.

What is the operating leverage factor at this level of? sales? Begin by determining the formula.

?(Round the operating leverage factor to three decimal? places.)

Requirement 5. By what percentage will operating income change if? July's sales volume is

1111?%

?higher? Prove your answer. ?(Round the percentage to two decimal? places.)

Prove your answer. ?(Round the percentage to two decimal? places.)

Vast Spirit

Calendars imprints calendars with college names. The company has fixed expenses of

$1,125,000

each month plus variable expenses of

$4.50

per carton of calendars. Of the variable​ expense,

75​%

is cost of goods​ sold, while the remaining

25​%

relates to variable operating expenses. The company sells each carton of calendars for

$19.50.

Read the requirements

LOADING...

.

Requirement 1. Compute the number of cartons of calendars that

Vast Spirit

Calendars must sell each month to breakeven.  

Begin by determining the basic income statement equation.

Using the basic income statement equation you determined above solve for the number of cartons to break even.

Requirement 2. Compute the dollar amount of monthly sales

Vast Spirit

Calendars needs in order to earn

$338,000

in operating income.  

Begin by determining the formula.

​(Round the contribution margin ratio to two decimal​ places.)

Requirement 3. Prepare the​ company's contribution margin income statement for June for sales of

485,000

cartons of calendars.

Requirement 4. What is​ June's margin of safety​ (in dollars)? What is the operating leverage factor at this level of​ sales?

Begin by determining the formula.

What is the operating leverage factor at this level of​ sales? Begin by determining the formula.

​(Round the operating leverage factor to three decimal​ places.)

Requirement 5. By what percentage will operating income change if​ July's sales volume is

13​%

​higher? Prove your answer. ​(Round the percentage to two decimal​ places.)

Prove your answer. ​(Round the percentage to two decimal​ places.)

1. Sales less variable costs and variable selling and administrative expenses.Contribution Margin, Break-Even Sales, A chart used to assist management in understanding the relationships among costs, expenses, sales, and operating profit or loss.Cost-Volume-Profit Chart, Indicates the possible decrease in sales that may occur before an operating loss results.Margin of Safety, and A measure of the relative mix of a business's variable costs and fixed costs, computed as contribution margin divided by operating income.Operating Leverage

   Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
   

   		Estimated Fixed Cost			Estimated Variable Cost (per unit sold)
   Production costs:
   	Direct materials				$50.00
   	Direct labor				30.00
   	Factory overhead	$350,000			6.00
   Selling expenses:
   	Sales salaries and commissions	340,000			4.00
   	Advertising	116,000
   	Travel	4,000
   	Miscellaneous selling expense	2,300			1.00
   Administrative expenses:
   	Office and officers' salaries	325,000
   	Supplies	6,000			4.00
   	Miscellaneous administrative expense	8,700			1.00
   	Total	$1,152,000			$96.00

   It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the The range of activity over which changes in cost are of interest to management.relevant range are 18,000 units.

   Required:

   1. Prepare an estimated income statement for 20Y7.

   Belmain Co.
   Estimated Income Statement
   For the Year Ended December 31, 20Y7
   Direct materials Income from operations Miscellaneous administrative expense Sales salaries and commissions Sales			$
   Cost of goods sold:
   Direct materials Income from operations Sales Supplies Travel		$
   Advertising Direct labor Income from operations Loss from operations Office and officers' salaries
   Factory overhead Miscellaneous administrative expense Sales Supplies Travel
   Total cost of goods sold
   Gross profit			$
   Expenses:
   Selling expenses:
   Factory overhead Income from operations Miscellaneous administrative expense Sales salaries and commissions Sales	$
   Advertising Cost of goods manufactured Direct materials Office and officers' salaries Sales
   Direct labor Factory overhead Sales Supplies Travel
   Direct materials Miscellaneous administrative expense Miscellaneous selling expense Sales Supplies
   Total selling expenses		$
   Administrative expenses:
   Advertising Direct labor Office and officers' salaries Sales salaries and commissions Travel	$
   Direct materials Factory overhead Sales Supplies Travel
   Direct materials Miscellaneous administrative expense Miscellaneous selling expense Sales salaries and commissions Sales
   Total administrative expenses
   Total expenses
   Income from operations			$

   2. What is the expected The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.contribution margin ratio?

   %

   3. Determine the break-even sales in units and dollars.

   Units	units
   Dollars	$1,800,000 $1,920,000 $2,100,000 $2,250,000

   4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?
   

   • $1,800,000
   • $1,920,000
   • $2,100,000
   • $2,250,000

   5. What is the expected margin of safety in dollars and as a percentage of sales?

   Dollars	$
   Percentage (If required, round the percent to one decimal place, e.g. 15.4%.)		%

   6. Determine the operating leverage.

Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:

It is expected that 21,400 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 26,275 units.

1. Prepare an estimated income statement for 20Y3. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive values.

2. What is the expected contribution margin ratio?

3. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number.

4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?

$

5. What is the expected margin of safety in dollars and as a percentage of sales? If applicable, use amounts previously computed and then round your answers to the nearest whole number.

6. Determine the operating leverage. Round to one decimal place.

23 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $215 and a unit cost of $140. The retailer requires a 36% markup on selling price. The manufacturer has unit variable costs of $35. Calculate the wholesaler percent markup on cost. Report your answer as a percentage and round to the nearest percent. please show work.

24 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $260 and a unit cost of $130. The retailer requires a 21% markup on selling price. The manufacturer has unit variable costs of $62. Calculate the manufacturer's dollar margin per unit. Round your answer to the nearest dollar. please show work

25 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $894 and a unit cost of $521. The retailer requires a 45% markup on selling price. The manufacturer has unit variable costs of $306. Calculate the manufacturer's percent markup on cost. Report your answer as a percentage and round to the nearest percent.please show work.

26 A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.4% commission and incur $575,000 in fixed costs, while an internal sales force has fixed costs projected at $2,180,000 and would receive 3.3% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars.please show work.

27 A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.7% commission and incur $590,000 in fixed costs, while an internal sales force has fixed costs projected at $1,880,000 and would receive 3.0% commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars. please show work.

Explain the relationship among cost, cost objective, cost accumulation, and cost allocation.

Prepare the journal entries to record the December 2020 transactions found down below. Remember to skip a line between each journal entry and use J1, J2, J3, etc, instead of the date.

1. On December 1, Rocky Ram, Inc. received $17,000 from Kanga Roo Inc. for partial payment of account.(First entry journalized and posted for you.)

2. On December 1, Rocky Ram, Inc. received $6,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2020 through February 28, 2021.

3. On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $12,000, Bow & Arrow, Inc. for $8,000, and Boa Construction Inc. for $15,000 in payment on accounts.

4. On December 10, the company purchased supplies in the amount of $4,000 on account from Boa Construction Inc.(FOB Shipping Point, terms n/10, n/30), order shipped in December.

5. On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account.

6. On December 13, Rocky Ram, Inc. made a sale in the amount of $77,000 to Poodle & Co (terms 2/10, n/30). The cost of the inventory sold was $36,000.

7. On December 17, Board of Directors declared $8,200 in dividends to be paid in January.

8. On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2020.

9. On December 23, received full payment from Poodle & Co. for sale made December 13(J6), within the discount period.

10. On December 23, Rocky Ram, Inc. made a sale in the amount of $90,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $28,000.

11. On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $14,000. The cost of inventory was $9,000.

12. On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $50,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January.

13. On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2021.

14. On December 31, Rocky Ram, Inc. paid utility bills totaling $2,020 for utilities used during the month of December.

Suppose a cube of aluminum which is 1.00 cm on a side accumulates a net charge of +2.00 pC.

(a) What percentage of the electrons originally in the cube was removed? ............................%

(b) By what percentage has the mass of the cube decreased because of this removal?............................ %

Question 1

Khalil is the owner and manager of a hardware store. He sells on average 50 industrial hammers per month. He places an order to buy 50 hammers from a wholesaler at a cost of 20 OMR per unit at the end of each month. However, Khalil orders everything himself and finds that it takes a long time. He estimates that the value of his time spent placing each order is 75 OMR. a. What should be the unit handling cost for hammers in order for Khalil's current inventory management to be optimal according to the EOQ model?

b. What percentage of the unit purchase cost is the handling cost?

c. What is the optimal quantity if the unit handling cost is 20% of the cost of the unit?

d. What is the annual cost of the inventory management policy in this case (described in part

. What is the annual cost of the current inventory management policy (50 per month)?

f. Which policy is better? Justify your answer. g. The wholesaler generally delivers an order within 5 working days (25 working days per month), what is the reorder point according to the current policy (50 per month)

The wholesaler offered Khalil a discount of 2 OMR per unit if the quantity ordered exceeds 200 units and 5 OMR if the quantity is greater than 400 units. The handling cost per unit is 20% of the purchase cost. h. Calculate the optimal order quantity.

i. Calculate the annual cost of this inventory management policy.

Question 1

Khalil is the owner and manager of a hardware store. He sells on average 50 industrial hammers per month. He places an order to buy 50 hammers from a wholesaler at a cost of 20 OMR per unit at the end of each month. However, Khalil orders everything himself and finds that it takes a long time. He estimates that the value of his time spent placing each order is 75 OMR. a. What should be the unit handling cost for hammers in order for Khalil's current inventory management to be optimal according to the EOQ model?

b. What percentage of the unit purchase cost is the handling cost?

c. What is the optimal quantity if the unit handling cost is 20% of the cost of the unit?

d. What is the annual cost of the inventory management policy in this case (described in part

. What is the annual cost of the current inventory management policy (50 per month)?

f. Which policy is better? Justify your answer. g. The wholesaler generally delivers an order within 5 working days (25 working days per month), what is the reorder point according to the current policy (50 per month)

The wholesaler offered Khalil a discount of 2 OMR per unit if the quantity ordered exceeds 200 units and 5 OMR if the quantity is greater than 400 units. The handling cost per unit is 20% of the purchase cost. h. Calculate the optimal order quantity.

i. Calculate the annual cost of this inventory management policy.