1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleks04 [339]
3 years ago
7

Problem 08-1A Preparing and analyzing a flexible budget LO P1, A1 [The following information applies to the questions displayed

below.] Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales $ 3,150,000 Cost of goods sold Direct materials $ 945,000 Direct labor 225,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 315,000 Utilities ($60,000 is variable) 180,000 Plant management salaries 200,000 1,910,000 Gross profit 1,240,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 430,000 General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 80,000 460,000 Income from operations $ 350,000 Problem 08-1A Part 1&2 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.

Business
1 answer:
cricket20 [7]3 years ago
4 0

Answer:

The answer is in the explanation

Explanation:

                                          Phoenix Company

                                          Fixed Budget Report  

                          For the 'fear Ended 31st December 2015  

                                                               Flexible Budget                    Flexible Budget for

                                             Variable Amount      Total Fixed       Unit Sales   Unit Sales

                                              per unit                     cost               of 14,000     of 16,000

Sales at 210 $ per unit (A)             210                                          2940000  3360000

                      Variable cost

Direct Material                             $ 62.00                                 $868,000.00  $ 992,000.00

Direct Labor                                  $ 14.00                                  $196,0000.00 $ 224,000.00

Machinery repairs                        $  3.00                                   $  42,000.00   $ 48,000.00

Utilities                                          $   2.00                                  $  28,000.00  $ 32,000.00

Packaging                                    $    6.00                                 $ 84,000.00    $ 96,000.00

Shipping                                       $    6.00                                 $ 84,000.00   $ 96,000.00

Total Variable Expenses (B)        $ 93.00                                 $1,302,000.00     $1,488,000.00

      Contribution margin (C=A-B)  $ 117.00                            $ 1,638,000.00 $ 1,872,000.00

      Fixed cost

Depreciation                                                    $ 315,000.00     $315,000.00   $ 315,000.00

Plant Management Salaries                           $ 210,000.00      $210,000.00  $ 210,000..

Utilities                                                             $ 180,000.00      $ 180,000.00 $ 180,000.00

Sales Salary                                                     $ 235,000.00      $ 235,000.00 $ 235,000.00

Advertising Expenses                                     $ 100,000.00      $ 100,000.00 $ 100,000.00  

Salaries                                                            $ 241,000.00      $ 241,000.00 $ 241,000.00

Entertainment Expenses                                $ 85,000.00       $ 85,000.00   $ 85,000.00

Total Fixed Expenses (D)                              $1,366,000.00   $1,366,000.00 $ I,366,000.00

                                                                        Net Profit (C-D)   $ 272,000.00 $ 506,000.00  

Variable Cost Per unit= Variable Cost / 150000  

                                Increase in Operating Income if Sales rise to 18000

                                                            Phoenix Company  

                                  Forecast contribution Margin Income Statement

                                          For the year Ended 31st December 2015  

Sales in Units                                                    15,000                  18,000

Contribution Margin Per Unit                    $           117            $          117

Contribution Margin                                   $ 1,755,000         $2,106,000

Fixed Costs                                                 $ 1,366,000         $ 1,366,000

Expected increase in Operating Income  $ 389,000           $ 740,000  

$ 351,000

                               Income (loss) from operation sale is reduced to 12000

                                                            Phoenix company  

                                  Forecast contribution Margin Income Statement

                                          For the year Ended 31st December 2015  

Sales in Units                                                    15,000                  12,000

Contribution Margin Per Unit                    $           117            $          117

Contribution Margin                                   $ 1,755,000         $1,404,000

Fixed Costs                                                 $ 1,366,000         $ 1,366,000

Operating Income                                     $ 389,000           $   38,000  

check the attached image for the correct arrangement of the tables and solution

You might be interested in
The process of linking relief and development is often a major deviation from the missions of both development and relief agenci
stiks02 [169]

The process of linking relief and development is often a major deviation from the missions of both development and relief agencies.-----False

Linking relief and development:

The key to linking relief and development from the development side is to find ways of reducing (a) the frequency and intensity and (b) the impact of shocks, which will in turn reduce the need for emergency relief.

What is development and relief agencies?

IRD is a nonprofit, nongovernmental organization responsible for implementing relief and development programs worldwide. IRD's mission is to empower the world's most vulnerable communities to achieve self-sufficiency through innovative solutions, applied knowledge and targeted expertise.

Learn more about development and relief agencies:

brainly.com/question/14368761

#SPJ4

3 0
1 year ago
Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in
dexar [7]

Answer:D) Rational, efficient, ideal organization based on principles of logic.

Explanation:Max Weber was a modern twentieth century Sociologist who proposed the Bereaucracy theory, according to Max Weber, Bereaucracy is the basis for the systematic formation of an organisation and Bereaucracy is designed to ensure efficiency and economic effectiveness is achieved. According to Max Weber, Bereaucracy is an ideal model for management and its administration to bring an organisation's power structure into focus when executing jobs or activities.

Like Max Weber, Tammy shares the same view that Bereaucracy is a Rational, efficient, ideal organization based on principles of logic.

7 0
3 years ago
When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the
bija089 [108]

Answer:

False

Explanation:

The assertion is false that when LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the point of each sale, rather than from the most recent purchases for the period.

Under this method it is <u>at the end of the accounting year that the Inventory account is adjusted to equal the cost of the merchandise that is unsold.</u>

It is important to note that under LIFO periodic (not LIFO perpetual) <u>we wait until the entire year is over before assigning the costs. </u>Then we flow the year's last costs first, even if those goods arrived after the last sale of the year.

4 0
3 years ago
Why is it important to understand which insurance network you are in
spin [16.1K]

Answer:

Because different insurance networks provide seperate benefits. For example a health insurance provider would give you injury-related insurances etc.

8 0
2 years ago
The margin of safety is a measure of the distance between budgeted sales and the break-even point. It can be measured in dollars
Rudiy27

Answer:

The correct option is these statements are true

Explanation:

Margin of safety is the measure of the reduction in sales that needs to be recorded before a company makes no profit,invariably the difference the planned sales volume and the sales volume required to break even(makes no profit no loss).

The margin of safety can be expressed in volume,say 100 units of a product,in dollar terms ,say each product sells for $100 each,the margin of safety becomes $10,000($100*100) and can also be expressed in percentage terms depending on the way management wants it stated.

4 0
3 years ago
Other questions:
  • Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans
    14·1 answer
  • The payroll register of Charbroil Company indicates $1,200 of social security tax withheld and $300 of Medicare tax withheld on
    15·1 answer
  • Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? a. gross
    7·1 answer
  • Kit, Amy, and Aaron acquire a piece of land, ownership listed as tenants in common. Of the total purchase price of $1,000,000, K
    9·1 answer
  • T&amp;P Corporation is a transnational company with four distinct businesses, including a national music and video store chain,
    14·1 answer
  • Steve's Outdoor Company purchased a new delivery van on January 1 for $45,000 plus $3,800 in sales tax. The company paid $12,800
    9·1 answer
  • What would happen if a state or municipality suddenly lost its tax base? Explain if this would have any impact on it's cost of b
    8·1 answer
  • Which of the following acts was passed to help fund the Union's war efforts during the American Civil War?
    10·1 answer
  • Imagine that you are a management coach and one of your clients, a new manager, says, “I’ve heard that about two thirds of manag
    9·1 answer
  • Which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journ
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!