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
You have been placed in charge of a large project. Shortened communication lines are required to ensure quick resolution of prob
Sphinxa [80]

Answer:

Pure project

Explanation:

A pure project management structure is one in which a team works full time on a project and the project manager of such project has full control of the project with very little control/interference from the top management levels.

This lesser interference from top management levels the more control and flexibility of the project managers towards accomplishing the project.

Cheers.

6 0
3 years ago
Benoit company produces three products—a, b, and
Lana71 [14]
My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

<span> <span> </span><span><span> PER UNIT
</span> <span> PRODUCT                              A               B                C
</span> <span> SELLING PRICE                   80              62                81
</span> <span> VARIABLE EXPENSES
</span> <span> DIRECT MATERIALS            24             18                  9
</span> <span> OTHER VAR EXP.                 24             25.4             43.65
</span> <span> TOTAL VAR EXP                   48             43.4             52.65
</span> <span> CONTRIBUTION MARGIN    32             18.6             28.35
</span> <span> <span>CM RATIO </span>                            0.4             0.3                0.35
</span> <span> </span> <span>
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
</span> <span> SAME RAW MATERIAL IS USED IN EACH PRODUCT.
</span> <span> MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
</span> <span> </span> <span>
PRODUCT      DM     <span>UNIT COST </span>        NO. OF LBS
</span> <span> A                      24            3                             8
</span> <span> B                      18            3                             6
</span> <span> C                        9            3                             3
</span> <span> </span> <span> PRODUCT NO. OF LBS/UNIT     MAX UNITS      TOTAL NO. OF LBS
</span> <span> A                       8                                800                    6400
</span> <span> B                       6                                800                    4800
</span> <span> C                       3                                800                    2400
</span> <span> TOTAL                                                                         13600
</span> <span> LIMITATION: 5,000 POUNDS PER MONTH ONLY.

</span></span></span><span> <span> </span><span><span> <span>required: </span>
</span> <span> <span>1. calculate the contribution margin per pound of the constraining resource for each product. </span>
</span> <span> 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
</span> <span> </span> <span>
</span></span></span><span>PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS. </span>

5 0
3 years ago
A multimillion-dollar u.s. project to construct a suspension bridge is in progress. true structures inc. in canada shares both p
umka21 [38]

Answer: Joint Venture

A Joint Venture is a business entity that is created when two or more corporations pool in their resources for a specific project.  

The corporations that are a part of the Joint Venture share the governance, risks and rewards of the joint venture.  

In a Joint venture the corporations who come together to form a joint venture retain their distinct entities.


7 0
3 years ago
Write a statement that increments total by the value associated with amount . That is, add the value associated with amount to t
marishachu [46]

Answer:

total = total + amount

Explanation:

The statement that increments total by the value associated with amount i.e add the value associated with amount to that associated with total and assign the result to total is:

total = total + amount

4 0
3 years ago
Pina Colada Corp. holds Tamarisk, Inc. $44400, 120-day, 15% note. The entry made by Pina Colada Corp. when the note is collected
Dafna1 [17]

Answer and Explanation:

The journal entry is shown below

Cash  $46,620

     To Notes Receivable $44,400

     To Interest receivable ($44,400 × 15% × 120 days ÷  360 days)

(Being the cash received is recorded)

Here we debited the cash as it increased the assets and at the same time we credited the interest receivable and the note receivable as it decreased the assets

The same is to be considered

7 0
3 years ago
Other questions:
  • What do you think of the decision made by Adelaide Ladywell?
    8·1 answer
  • A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels
    12·1 answer
  • Anybody know how to do FIFO / LIFO Accountancy stuff?
    9·1 answer
  • Maddie's shoe store donated hundreds of pairs of shoes to needy children at an inner city school. A news crew reported on the do
    5·1 answer
  • Which of the following are signs of a person being in credit distress?
    11·1 answer
  • _______is a very useful method for determining whether respondents have any difficulty understanding the questionnaire and wheth
    6·1 answer
  • Your aunt is planning to invest in a bank CD that will pay 5.0 percent interest semiannually. If she has $6,000 to invest, how m
    5·1 answer
  • What are the typical fees banks charge?
    8·2 answers
  • As a CEO, Olivia tries to empower lower-level managers to have some decision-making authority and encourage values and norms tha
    7·1 answer
  • Consumer surplus is the difference between the ___ price a consumer is willing to pay for a product and the price paid.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!