A company that makes organic fertilizer has supplied the following data: Bags produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's margin of safety in units is closest to: Note: Round per unit calculations to 2 decimal places. 200,000 $ 1,560,000 $ 660,000 $ 448,000 $ 180,000 $ 214,000 $ 58,000

A company that makes organic fertilizer has supplied the following data: Bags produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's margin of safety in units is closest to: Note: Round per unit calculations to 2 decimal places. 200,000 $ 1,560,000 $ 660,000 $ 448,000 $ 180,000 $ 214,000 $ 58,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Data concerning Homme Corporation's single product appear below: Per Unit $190 114 $76 Selling price Variable expenses........ Contribution margin Percent of Sales 100% 60% 40% The company is currently selling 2,000 units per month. Fixed expenses are $130,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Homme Corporation. Refer to the original data when answering this question. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? increase of $2,440 decrease of $12,000 increase of $14,440 decrease of $2,440
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Take a look at the following company information: Sales (000s) Direct Materials (000s) Direct Labour (000s) Gross Profit (000s) Selling and Admin Expense (000s) Net profit $ 1566 $554 $ 211 $801 Answer: $ 162.5 $ If we decrease the direct materials cost by 2%, what is the new Net Profit? Show your answer to 2 decimals and include the correct unit.
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GIGO Computers has two divisions that manufacture computing devices. Below are the results from last year. Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Gross Profit Laptop Tablet Total $ 14,500,000.00 $ 36,000,000.00 $ 50,500,000.00 $9,500,000.00 $ 23,400,000.00 $ 32,900,000.00 $ 1,400,000.00 $ 1,880,000.00 $ 3,280,000.00 3,600,000.00 $ 10,720,000.00 $ 14,320,000.00 1,850,000.00 $ 5,760,000.00 $ 7,610,000.00 840,000.00 $ 1,740,000.00 1,300,000.00 $ 2,500,000.00 2,820,000.00 $ 2,470,000.00 Variable Operating Expenses $ bed Operating Expenses $ Common Fixed Costs $ Operating Income -$ 900,000.00 $ 1,200,000.00 $ 350,000.00 $ G MED Meng Wanzhou, the President of GIGO is not happy that the laptop division is losing money. a) Prepare a segment margin income statement. Fixed cost of goods sold, and fixed operating expenses can be traced to each division. (6 marks) b) Should Meng keep or close the laptop division? (1 mark)
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Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 520,000 $ 2,132,000 $ 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000 If the company increases its unit sales volume by 3% without increasing its fixed expenses, then total net operating income should be closest to: Note: Round your intermediate calculations to 2 decimal places.