The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring thecompany's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,600units. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 perunit. Budgeted fixed costs totaled $124,800. There were no variable SG&A costs.Prepare Coronado's flexible budget for the year just ended.:+A$

The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,6 units. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 p unit. Budgeted fixed costs totaled $124,800. There were no variable SG&A costs. Prepare Coronado's flexible budget for the year just ended. $ $

The manager of Coronado, Inc. reviewed the year just completed, hoping to establish a point of comparison for measuring the company's actual performance. Sales volume came in lower than expected, at 5,200 units, compared with budgeted sales of 5,6 units. Coronado's budgeted DM, DL, and variable-MOH costs added up to $22 per unit with an expected selling price of $48 p unit. Budgeted fixed costs totaled $124,800. There were no variable SG&A costs. Prepare Coronado's flexible budget for the year just ended. $ $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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Similar questions

Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
During the current year, OutlyTech Corp. expected to sell 22,600 telephone switches. Fixed costs for the year were expected to be $12,143,000, the unit sales price was budgeted at $3,300, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number):
During the current year, OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs for the year were expected to be $12,144,000, the unit sales price was budgeted at $3,200, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in sales dollars is:
During the current year, Mute Corporation expected to sell 22,200 telephone switches. Fixed costs for the year were expected to be $12,141,000, the unit sales price was budgeted at $3,100, and unit variable costs were budgeted at $1,280. Mute's margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200. Becker Sofa Company's margin of safety (MOS) in units is:
In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.Becker Sofa Company's margin of safety (MOS) in units is:
Salalah Inc. sells a plastic products to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 38500, a selling price of OMR 47, variable cost per unit of OMR 11, and total fixed costs of OMR 390000.what is the safety margin in units for Bahwan Inc.?
or the current year, Power Cords Corp. expected to sell 42,300 industrial power cords. Fixed costs were expected to total $1,651,500; unit sales price was expected to be $3,900; and unit variable costs were budgeted at $2,400.Power Cords Corp.'s margin of safety (MOS) in units is: Multiple Choice 49,099. 39,299. 41,199. 36,399. 32,799.
Classics, Ltd., details cars. Classics wants to compare this quarter’s results with those for last quarter, which is believed to be typical for operations. Assume that the following information is provided. Last Quarter This Quarter Number of detailings 440 523 Revenues $ 72,160 $ 68,800 Variable costs 27,920 31,920 Contribution margin $ 44,240 $ 36,880 Required: a. Compute the flexible budget and sales activity variance and prepare a profit variance analysis. (Hint: Use last quarter as the master budget and this quarter as “actual.”) b. What impact did the changes in number of detailings and average revenues (i.e., sales price) have on Classics, Ltd.’s contribution margin?
An engineer collected average cost and revenue data for Arenson’s FC1 handheld financial calculator.Fixed cost = $ 300,000 per yearCost per unit = $40Revenue per unit = $70 Show the sensitivity of profit to variation in revenue from $55 to $75 per unit using a $5 increment. Perform this analysis at two sales quantities: (1) the breakeven quantity for the collected data, and (2) 20% greater than this breakeven quantity. (Note: Be sure to use the original estimates for FC and cost per unit.)
For the current year, Power Cords Corp. expected to sell 40,700 industrial power cords. Fixed costs were expected to total $1,643,500; unit sales price was expected to be $3,650; and unit variable costs were budgeted at $2,100. Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.
In the current year, Comfy Couch Company expected to sell 11,300 leather sofas. Fixed costs for the year were expected to be $8,399,500; unit sales price was budgeted at $4,150; and unit variable costs were expected to be $1,900. Show all your workings for Margin of safety units