Objective 3 - Apply cost-volume-profit analysis in a multiple-product setting.More-Power Company has projected sales of 75,000 regular sanders and30,000 mini-sanders for next year. The projected income statement is asfollows:Regular SanderMini-SanderTotal$3,000,0001,800,000$1,200,000250,000$ 950,000SalesS1,800,000$4,800,00Less: Variable expensesContribution marginLess: Direct fixed expensesProduct marginLess: Common fixed expenses900,0002.700,00S 900,000450,000$ 450,000$2,100,00700,00S1,400,00600,00Operating incomeS 800,00com/staticinb/ulevolindexhtml?elSBN=97813059707248id=187456248&nbid=5246498snapshotid=524649&dockAppuld=1. 2/12Print PreviewRequired:1. Set up the given income statement on a spreadsheet (e.g., ExcelM). Then,substitute the following sales mixes, and calculate operating income. Be sureto print the results for each sales mix (a through d).Regular SanderMini-Sander75,00037,500a.b.60,00060,000C.30,00090,000d.30,00060,0002. Calculate the break-even units for each product for each of the precedingsales mixes.

Break Even Point is the situation for a manufacturing firm when the total revenues of a firm are…

Objective 3- Apply cost-volume-profit analysis in a multiple-product setting. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Regular Sander Mini-Sander Total S1,500,000 900,000 $ 900,000 Sales Less Variable espenses Contribution margin Less Direct fised expenses Product margin Less: Common fised expenses Operating income $3,000,000 1,500,000 31,200,000 250,000 $ 950,000 S4.800,00 2.700,00 $2,100,00 700,00 S1.400,00 450,000 450,000 600,00 S S00,00 comitaticinblulevolndex.hemitelsaN97813osaror24idr18745624rbidis24anapshotidis2464dockAppluidet. 212 Print Preview Required: 1. Set up the given income statement on a spreadsheet (e.g., Excel). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d).

Objective 3- Apply cost-volume-profit analysis in a multiple-product setting. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Regular Sander Mini-Sander Total S1,500,000 900,000 $ 900,000 Sales Less Variable espenses Contribution margin Less Direct fised expenses Product margin Less: Common fised expenses Operating income $3,000,000 1,500,000 31,200,000 250,000 $ 950,000 S4.800,00 2.700,00 $2,100,00 700,00 S1.400,00 450,000 450,000 600,00 S S00,00 comitaticinblulevolndex.hemitelsaN97813osaror24idr18745624rbidis24anapshotidis2464dockAppluidet. 212 Print Preview Required: 1. Set up the given income statement on a spreadsheet (e.g., Excel). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d).

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
Cost-Volume-Profit Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales (units or dollars) is in the operating profit area, operating loss area, or at the break-even point. 4,800 units 12,000 units $1,500,000 20,000 units $2,500,000 b. Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a). c. The graphic format permits the user to visually determine the and the * for any given level of
Multiproduct breakeven analysis and target profit, taxes Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric BrAc Sellingpriceperunt...........$S25$30 Variablecostperunit ... $14$17 Planned unit sales volume . . . . . . 800, 000 400,000 Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. Required (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910, 000 ?
CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…
Target Profit Analysis Lin Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000.' Required: 1. Calculate the unit sales needed to attain a target profit of $10,000. 2. Calculate the dollar sales needed to attain a target profit of $15,000.
CVP Analysis using a chart: The cost-volume-profit chart for Byron Manufacturing is shown in the screenshot. Use the graph to complete the sentences given below. Byron Manufacturing reaches its break-even level of activity when it sells _____________ (200, 400, 500, 600) units and generates __________ ($5,000, $10,000, $12,000, $15,000) in revenue, because at this level of activity the firm's revenue ____________ (is greater than, is less than, equals) its total cost. In addition, you can determine from the chart that Byron Manufacturing's fixed costs are ________ (5,000, $6,000, $10,000, $12,000) and its price per unit is __________ ($.04, $10.00, $24.00, $30.00) and variable cost per unit is __________ ($.04, $10.00, $12.00, $24.00) A. If fixed costs increase, what will happen to the break-even point? ______ a. The break-even point will increase. b. The break-even point will decrease. B. If the price per unit decreases, what will happen to the break-even point? ________ a. The…
Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
Data concerning Celenza Corporation's single product appear below: selling price per unit- $230 Variable expense per unit- 59.80 fixed expense per month- 697,820 Assume the company's monthly target profit is $18,000. The dollar sales to attain that target profit are closest to: Select one: a. $967,324 b. $1,478,766 c. $715,820 d. $2,753,154
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month The unit sales to attain the company's monthly target profit of $25,000 is closest to: (Do not round intermediate calculations.) Multiple Choice O 4,595 2,441 4,908 4,856 $190.00 $ 94.50 $ 438,790
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
Net Income Planning Midvale Corporation sells a single product for $100 per unit, of which $40 is contribution margin. Fixed costs total $180, 000 and net income before income tax is $48, 000. Determine the following a. The present sales volume in dollars. $Answer 570, 000 b. The break - even point in units. Answer 4, 500 units c. The sales volume in units necessary to attain a net income before income tax of $60, 000 Answer 6, 000 units d. The sales volume in units necessary to attain a net income before income tax equal to 10% of sales revenue. Answer 5, 925 units e. The sales volume in units necessary to attain an after - tax net income of $54, 000 if the tax rate is 40% Answer 6,750 units.
Student ID #: 11. George Corporation has the following information for the current year: Selling price per Variable costs per unit Fixed costs unit 2$ 10.00 2$ 6.00 $1,000.00 Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units Profit area A. B. С. D. Е. F. G. Н. Loss area 6,000 5,000 4,000 3,000 2,000 1,000 Retm 100 200 300 400 500 Earnin Qty (# Units) 3 Dollars ($)