Assume the following business and financial data for the L&N Trucking Company: The L&N Trucking Company achieved total miles driven of 2,425,000 systemwide for their latest fiscal year. For the latest fiscal year, the trucking company earned average revenue of $5.48 per mile driven. L&N Trucking's average variable cost per mile driven for the year was $2.85. The trucking company's total fixed costs for the year were $1,857,000. Sa) Show the cost-volume-profit (CVP) income statement for L&N Trucking, including contribution margin and net income, in both total dollars and per unit. 5b) Calculate the trucking company's breakeven level in both total sales dollars and units 5c) Compute L&N Trucking's margin of safety and margin of safety ratio, based on the latest year's results.

Assume the following business and financial data for the L&N Trucking Company: The L&N Trucking Company achieved total miles driven of 2,425,000 systemwide for their latest fiscal year. For the latest fiscal year, the trucking company earned average revenue of $5.48 per mile driven. L&N Trucking's average variable cost per mile driven for the year was $2.85. The trucking company's total fixed costs for the year were $1,857,000. Sa) Show the cost-volume-profit (CVP) income statement for L&N Trucking, including contribution margin and net income, in both total dollars and per unit. 5b) Calculate the trucking company's breakeven level in both total sales dollars and units 5c) Compute L&N Trucking's margin of safety and margin of safety ratio, based on the latest year's results.

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

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

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Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets ROI At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales $ 1,800,000 435,000 1,365,000 1,005,000 $360,000 $ 1,200,000 $360,000 $ 216,000 The company's minimum required rate of return is 10% Contribution margin ratio Fixed expenses 70 of sales. 6. What is the ROI related to this year's investment opportunity?
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i Requlred Informatlon The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: $ 2,300,000 Contribution margin Fixed expenses 1,170,000 Net operating income Average operating assets S1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales $ 460,000 50% of sales Contribution margin ratio Fixed expenses, $ 161,000 The company's minimum required rate of return is 15%. 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.) < Prev Next 15. here to search, 近。 F4 F5 F7 F8 F12 $ & V 4.
LL Required Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,00e 670,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 000'09 Average operating assets $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses S0% of sales $ 161,000 The company's minimum required rate of return is 15%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) e here to search 近。 F4 F5 F7 F8 F10 F11 て2 24 4 % 9 08.
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