Easton Inc. manufactures and sells two types of beach towels…
Easton Inc. manufactures and sells two types of beach towels, standard and deluxe. Easton expects the following operating results for the year: Standard Deluxe Total sales $ 450,000 $ 50,000 Total variable expenses $ 360,000 $ 20,000 Easton expects to have $63,360 in fixed expenses. What is Easton’s break-even point in sales dollars for product Standard towel?
Read DetailsNorman Corporation has provided its contribution format inco…
Norman Corporation has provided its contribution format income statement: Sales $ 426,400 Variable expenses 230,000 Contribution margin 196,400 Fixed expenses 120,900 Net operating income $ 75,500 Given the company’s degree of operating leverage, if the company’s sales increase by 7%, its net operating income should increase by about:
Read DetailsNorman Corporation has provided its contribution format inco…
Norman Corporation has provided its contribution format income statement: Sales $ 426,400 Variable expenses 260,000 Contribution margin 166,400 Fixed expenses 120,900 Net operating income $ 45,500 Given the company’s degree of operating leverage, if the company’s sales increase by 7%, its net operating income should increase by about:
Read DetailsDenmark Inc. has provided the following income statement. As…
Denmark Inc. has provided the following income statement. Assume that the following information is within the relevant range. Sales (7,000 units) $ 210,000 Variable expenses 136,500 Contribution margin 73,500 Fixed expenses 35,700 Net operating income $ 37,800 The number of units that must be sold to achieve a target profit of $31,500 is closest to:
Read DetailsPortland Corporation has provided the following data for its…
Portland Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 76 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 6 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 264,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 74,000 Year 1 Year 2 Units in beginning inventory 0 2,000 Units produced during the year 11,000 13,000 Units sold during the year 9,000 14,000 Units in ending inventory 2,000 1,000 The net operating income under absorption costing in Year 1 is closest to:
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