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Aneli [31]
3 years ago
6

Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 uni

ts) $ 222,000 $ 6.00 Variable expenses 111,000 3.00 Contribution margin 111,000 $ 3.00 Fixed expenses 41,000 Net operating income $ 70,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 12%? 2. What is the revised net operating income if the selling price decreases by $1.30 per unit and the number of units sold increases by 19%? 3. What is the revised net operating income if the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%?
Business
1 answer:
inn [45]3 years ago
8 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Total Per Unit Sales (37,000 units at $6) $ 222,000  

Variable expenses 111,000 ($3.00)

Contribution margin 111,000 ($ 3.00)

Fixed expenses 41,000

Net operating income $ 70,000

1) sales increase by 12%

Income= contribution margin* 1.12 - fixed expenses= 111,000*1.12 - 41,000= 83,320

2) selling price decreases by $1.30 per unit and the number of units sold increased by 19%.

Income= (37000*1.19)*(4.7-3) - 41,000= 33,851

3)  the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreased by 7%

Income= (37000*0.93)*(7.30-3) - 47000= $100,963

4) the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreased by 13%

Income= (37000*0.87)*(7.2-3.2) - 41000= $87,760

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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets u
mel-nik [20]

Answer:

Tax Liability  = $59,170

Explanation:

Profit on building = 234,000-(204,000-56,000)

Profit on building = $86,000

Loss on equipment = 84,000 - (152,000-27,000)

Loss on equipment = $41,000

Net profit = Profit on building - Loss on equipment

Net profit = $86,000 - $41,000

Net profit = $45,000

Taxable income before transaction = $194,500

Total taxable income = $194,500 + $45,000

Total taxable income = $239,500

According to tax rules

Tax Liability  = ($194,500 - $85,650)28% + 17,442 + ($45,000 )(25%)

Tax Liability  = $47,920 + $11,250

Tax Liability  = $59,170

5 0
3 years ago
Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:
Doss [256]

Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.

This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.

Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.

Learn more here:

brainly.com/question/3520708

7 0
2 years ago
Salah’s net income for the year ended December 31, Year 2 was $191,000. Information from Salah’s comparative balance sheets is g
krok68 [10]

Answer:

Cash Dividends - Year 2 =  $84400

Explanation:

The net income of the business is usually appropriated or used for two purposes at the end of the year. It is either used to pay dividends or is retained in the business and is added to the retained earnings or both.

Thus, to calculate the dividends paid by the business in a particular year, we can calculate the change in retained earnings and deduct it from the net income.

Change in retained earnings = Ending balance of retained earnings - Beginning balance of retained earnings

Change in retained earnings = 694000 - 587400

Change in retained earnings = $106600

Thus, out of the net income of $191000, $106600 were transferred to retained earnings. So, the amount of dividends paid for the year is,

Cash Dividends - Year 2 = 191000 - 106600  = $84400

7 0
3 years ago
On the first day of the fiscal year, a company issues an $949,000, 9%, five-year bond that pays semiannual interest of $42,705 (
KonstantinChe [14]

Answer:

Bond issue price                                                    $892,100

Face value                                                              $949,000

Discount on bond                                                   $56,900

Number of Interest payments (10 years x 2)          10

Discount to be amortized per payment                $5,690

Interest on bond                                                    $51,210

Date        Description                               Debit        Credit

Dec.  31 Bond interest expense             $56,900

              Discount on bonds payable                      $5,690

              Cash                                                           $51,210

              (Interest on bond paid and Premium amortized)

7 0
3 years ago
Describe the difference between period costs and product costs.
Soloha48 [4]

Explanation:

The period cost is the cost that is incurred with the passage of time. It mainly involves the major portion of the selling and administration expenses like - selling expenses, advertising expenses. It is a fixed cost

While the product cost involves the cost related to the product. It involves direct material cost, direct labor cost, and the manufacturing overhead cost. It is a variable cost

So, the period cost is the operating cost that are expenses when it is incurred

Whereas the product cost is treat as an asset for external financial reporting. First this is recorded as an asset on the balance sheet until asset is sold and then it is transferred to the cost of goods sold i.e expense account

Now on the income statement the product cost or cost of goods sold is subtracted from the sales revenue so that the gross profit could come

Then the period cost is deducted to find out the operating income

Now the classification of the product cost and the period cost are as follows

Shaft and handle of weed trimmer  = Direct material cost

Motor of weed trimmer   = Direct material cost

Factory labor for workers assembling weed trimmers  = Direct labor cost

Nylon thread used by the weed trimmer (not traced to the product)  = Manufacturing overhead cost

Glue to hold housing together   = Manufacturing overhead cost

Plant janitorial wages   = Manufacturing overhead cost

Depreciation on factory equipment   = Manufacturing overhead cost

Rent on plant   = Manufacturing overhead cost

Sales commissions  = Period cost

Administrative salaries  = Period cost

Plant utilities  = Manufacturing overhead cost

Shipping costs to deliver finished weed trimmers to customers = Period cost

3 0
3 years ago
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