de bneIn previous year, Seventy Up, Inc. operated at 250,000 units. The following incomeement was provided for you to plan your next year's operation:SalesCost of goods soldGross profitOperating expenses, variable costs is P125,000Net income before income taxeleo P2,000,000d1,500,000 itP 500,000 nsmh 225,000P 275,00029adeobaudThe fixed manufacturing cost in the cost of goods sold is P3.00Instructions: Revise the income statement to reflect a variable costing method.lad

It is pertinent to note that variable costs are the costs that change with the change in the level…

In previous year, Seventy Up, Inc. operated at 250,000 units. The following income ment was provided for you to plan your next year's operation: Sales Cost of goods sold Gross profit Operating expenses, variable costs is P125,000 Net income before income tax P2,000,000 1,500,000 P 500,000 225,000 P 275,000 The fixed manufacturing cost in the cost of goods sold is P3.00 Instructions: Revise the income statement to reflect a variable costing method.

In previous year, Seventy Up, Inc. operated at 250,000 units. The following income ment was provided for you to plan your next year's operation: Sales Cost of goods sold Gross profit Operating expenses, variable costs is P125,000 Net income before income tax P2,000,000 1,500,000 P 500,000 225,000 P 275,000 The fixed manufacturing cost in the cost of goods sold is P3.00 Instructions: Revise the income statement to reflect a variable costing method.

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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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
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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
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The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.
The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 What is the break- even point in amount ?
The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required What is the break- even point in amount ?
The HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required At what level of sales will the company be able to maintain its present pre- tax profit position even after expansion?