Question Completion:
Prepare an Income Statement for the month of June.
Answer:
Windsor, Inc.
Income Statement for the month ended June 30, 2017:
Service Revenue $7,730
Supplies expense 1,100
Maintenance and
repairs expense 700
Advertising expense 400
Utilities expense 200
Salaries and
wages expense 1,630 $4,030
Net Income $3,700
Explanation:
Windsor, Inc. Income Statement is where the revenues and expenses are summarized in order to arrive at the net income or profit of the business. Temporary accounts are closed to the income statement. These are accounts that are periodic in nature. They are not permanent accounts, which are transferred to the next period. The only element of the income statement that is taken to the balance sheet is the net income or loss.
Answer:
Net income will decrease by $400,000
Explanation:
Currently this business unit is generating a net loss of $150,000:
total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000
if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000
Answer:
Letter a is correct. <u>To the right of the social supply curve.</u>
Explanation:
In this situation, we can say that the correct alternative is that the company's supply curve will be to the right of the social supply curve. For when there is an external cost of producing a good, it means that there is a cost committed by third parties, that is, this cost has no direct relation to the production process of the good, but it can be said that the production of the organization goes beyond ideal social level of production, which causes an externality, as there are consequences for third parties on a decision which they did not participate in.
Answer: Karl must sell 1350 small heaters and 450 large heaters to break even.
We follow these steps to arrive at the answer:
No. Small Large Total
1 Selling Price per unit 80 250
2 Variable Cost per unit 30 120
3 Number of units sold 2100 700 2800
4 Sales mix 3 1
5 Total sales (1*3) 168000 175000
6 Total Variable Cost (2*3) 63000 84000
7 Contribution Margin (5-6) 105000 91000 196000
Next we compute the Weighted Average Contribution Margin as follows:
Now, Break even point (BEP) is computed as
Since the large and small heaters are sold in the 3:1 ratio, we can find the number of large and small heaters to be sold in order to achieve the break even point at 1800 units.
Assuming the company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurislon to be purchased in August is:$3,663,220.
<h3>Total cost</h3>
Using this formula
Total cost=(Desired ending inventory+ Required for production-Ending inventory)×Rate per kilogram
Total cost=[(21,700×6.5×20%)+(23,000×6.5)-11,200]×$22 per kilogram
Total cost=(28,210+149,500-11,200)×$22 per kilogram
Total cost=166,510×$22 per kilogram
Total cost=$3,663,220
Inconclusion the total cost of Jurislon to be purchased in August is:$3,663,220.
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