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vlada-n [284]
3 years ago
10

Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells it

s product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:
Required:
1. Calculate the following budgeted figures for 2022:
a. The total fixed cost.
b. The variable cost per unit sold.
c. The contribution margin per unit sold.
d. The break-even point in unit sales and dollar sales.
e. The margin of safety.
f. The degree of operating leverage
2. Prepare a budgeted variable costing income statement for 2022. Stop your computations at net operating income.
Business
1 answer:
elixir [45]3 years ago
4 0

Answer:

1. a. Total Fixed Cost $468,000

b. Variable cost per unit sold $1.25

c. Contribution margin per unit $10.5

d. Break even point in unit sales 44,571 units

e. Margin of Safety 10.8%

f. Degree of operating Leverage  2.3%

Explanation:

Margin of Safety :  Current sales in units - Break even Sales in units

Break even Point in unit sales  = Fixed cost / contribution margin

Degree of operating leverage = % change in operating leverage / % change in sales

{[667088 - 525218 ] / 667,088]} / {[55,000 - 50,000] / 55,000}

21 / 9.09 = 2.3%

Contribution Margin : Selling price per unit - Variable cost per unit

$32 - $21.5

2. <u>Income Statement 2022</u>

Sales 2,848,000

Cost of goods sold 1,998,732

Gross Margin 849,268

Selling and administrative cost 579,250

Operating profit 270,018

Interest Expense 9,642

Net profit 260,376

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Tresset [83]

Answer:

$6,734

Explanation:

On December 31, there were 46 units remaining in ending inventory.

These 46 units consisted of

6 from January x $123 = 738

8 from February x $133 = 1064

10 from May x $143 = 1430

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14 from November x $163 = 2282

Using the specific identification method, the cost of the ending inventory is: 734 + 1064 + 1430 + 1224 + 2282 = $6734

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2 years ago
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Answer:

(D) Specialize in producing something that it is relatively good at producing.

Explanation:

When a country specialises in production of a good it is relatively good at producing, its citizens will not find it difficult to manufacture the good for local consumption and export.

If the country needs product it is not good at producing it imports it from other countries that have a competitive advantage in producing it.

This will produce maximum material comfort for its citizens.

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3 years ago
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Gala2k [10]

Answer:

A.No entry is required

B.No entry is required

C.No entry is required

D.No entry is required

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The Edward City Council

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No Entry Required

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No Entry Required

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No Entry Required

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3 years ago
A government inspection has required your company to upgrade the safety equipment in the manufacturing process of ice creamery.
lapo4ka [179]

Answer: Option E

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In the given case, the inspection leading to safety upgrade was done done by the govt. Such requirement depicts that the safety structure was not as per the law passed or rule made.

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3 years ago
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Answer:

1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

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