The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses 735,000 Contribution margin Fixed expenses Net income (loss) (a) Answer the following independent questions. (b) 360,000 ($45,000) What was the company's break-even sales dollars in 2021? 315,000 Your answer is correct. Break-even point in sales dollars $ (c) eTextbook and Media Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Media 1,200,000 12,000 Atte Atte If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unch units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 5. to O decimal places, e.g. 5,275.)

The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses 735,000 Contribution margin Fixed expenses Net income (loss) (a) Answer the following independent questions. (b) 360,000 ($45,000) What was the company's break-even sales dollars in 2021? 315,000 Your answer is correct. Break-even point in sales dollars $ (c) eTextbook and Media Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Media 1,200,000 12,000 Atte Atte If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unch units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 5. to O decimal places, e.g. 5,275.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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