Can I please get help with this quesiton? The following income statement was drawn from the records of Joel Company, a merchandising firm:JOEL COMPANYIncome StatementFor the Year Ended December 31, Year 1Sales revenue (2,000 units × $125)$250,000Cost of goods sold (2,000 units × $65)(130,000)Gross margin120,000Sales commissions (10% of sales)(25,000)Administrative salaries expense(30,000)Advertising expense(20,000)Depreciation expense(24,000)Shipping and handling expenses (2,000 units × $1.00)(2,000)Net income$19,000RequiredReconstruct the income statement using the contribution margin format.Calculate the magnitude of operating leverage.Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent. Leach Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between6,000 and 12,000 trophies per year. The following cost data apply to various activity levels:RequiredComplete the following table by filling in the missing amounts for the levels of activity shown in the first row of the table.Note: Round "Cost per unit" answers to 2 decimal places.Number of TrophiesTotal costs incurredFixedVariableTotal costsCost per unitFixedVariableTotal cost per trophy$$$$6,00060,00060,000120,00010.0010.0020.008,00010,00012,000 Complete this question by entering your answers in the tabs below.Req AReq B and Cb. Calculate the magnitude of operating leverage.c. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10percent.Note: Round your intermediate calculations and the final answer for "Operating leverage" to 2 decimal place.b. Operating leveragec. Net income< Req AReq B and C >Show less

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Description: Can I please get help with this quesiton? The following income statement was drawn from the records of Joel Company, a merchandising firm:JOEL COMPANYIncome StatementFor the Year Ended December 31, Year 1Sales revenue (2,000 units × $125)$250,000Cost

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Can I please get help with this quesiton? The following income statement was drawn from the records of Joel Company, a merchandising firm: JOEL COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (2,000 units × $125) $250,000 Cost of goods sold (2,000 units × $65) (130,000) Gross margin 120,000 Sales commissions (10% of sales) (25,000) Administrative salaries expense (30,000) Advertising expense (20,000) Depreciation expense (24,000) Shipping and handling expenses (2,000 units × $1.00) (2,000) Net income $19,000 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent.

Can I please get help with this quesiton? The following income statement was drawn from the records of Joel Company, a merchandising firm: JOEL COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (2,000 units × $125) $250,000 Cost of goods sold (2,000 units × $65) (130,000) Gross margin 120,000 Sales commissions (10% of sales) (25,000) Administrative salaries expense (30,000) Advertising expense (20,000) Depreciation expense (24,000) Shipping and handling expenses (2,000 units × $1.00) (2,000) Net income $19,000 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

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Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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JOEL COMPANY
Income Statement
For the Year Ended December 31, Year 1
Sales revenue (2,000 units × $125)	$250,000
Cost of goods sold (2,000 units × $65)	(130,000)
Gross margin	120,000
Sales commissions (10% of sales)	(25,000)
Administrative salaries expense	(30,000)
Advertising expense	(20,000)
Depreciation expense	(24,000)
Shipping and handling expenses (2,000 units × $1.00)	(2,000)
Net income	$19,000

Required

Reconstruct the income statement using the contribution margin format.
Calculate the magnitude of operating leverage.
Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent.

Leach Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between
6,000 and 12,000 trophies per year. The following cost data apply to various activity levels:
Required
Complete the following table by filling in the missing amounts for the levels of activity shown in the first row of the table.
Note: Round "Cost per unit" answers to 2 decimal places.
Number of Trophies
Total costs incurred
Fixed
Variable
Total costs
Cost per unit
Fixed
Variable
Total cost per trophy
$
$
$
$
6,000
60,000
60,000
120,000
10.00
10.00
20.00
8,000
10,000
12,000

Complete this question by entering your answers in the tabs below.
Req A
Req B and C
b. Calculate the magnitude of operating leverage.
c. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10
percent.
Note: Round your intermediate calculations and the final answer for "Operating leverage" to 2 decimal place.
b. Operating leverage
c. Net income
< Req A
Req B and C >
Show less

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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