coursehero_chapter 6 problems

coursehero_chapter 6 problems - PROBLEM 6-18B Missing Data...

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PROBLEM 6-18B Missing Data; Basic CVP Concepts (a) Case 2 Variable expenses: $20,000 (b) Case 4 Fixed expenses: $122,000 a. Assume that only one product is being sold in each of the four following case situations: Case Units Sold Sales per Unit 1 30,000 $480,000 $150,000 $305,000 2 $60,000 $4 $50,000 ($10,000) 3 5,000 $20,000 $11 4 12,000 $432,000 $142,000 b. Assume that more than one product is being sold in each of the four following case situations: Case Sales 1 $200,000 35% 2 $250,000 $175,000 $95,000 3 20% $260,000 ($40,000) 4 $375,000 $225,000 PROBLEM 6-19B Sales Mix; Multi-Product Break-Even Analysis (2) Break-even: €794,118 Product Spaghetti Tortellini Fettuccini Total Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Variable Expenses Contribution Margin Fixed Expenses Net Operating Income (Loss) ? ? ? ? ? ? $9,000 ? ? $26,000 Variable Expenses Average Contribution Margin (percent) Fixed Expenses Net Operating Income (Loss) ? ? $17,000 ? ? ? ? ? ? $28,000 Mamma’s Pasta, Ltd., of Italy exports Italian pasta throughout North America. The company produces three varieties of pasta- Spaghetti, Tortellini and Fettuccini. (The currency in Italy is the euro, which is denoted by €.) Budgeted sales by product and in total for the coming month are shown below:
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20% 40% 40% 100% Sales 160000 100% 320000 100% 320000 100% 800000 100.00% Variable expenses Contribution margin 144,000 Fixed expenses Required: 1 Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above. 2 Compute the break-even point in sales dollars for the month based on your actual data. 3 PROBLEM 6-20B Basic CVP Analysis; Graphing (1) 16,000 watches (3) $22,500 net operating loss Per Watch Selling price $50.00 Variable expenses: Invoice cost $26.50 Sales commission $27.50 Percentage of total sales 144,000 90% 272,000 85% 240,000 75% 656,000 82.0% 16,000 10% 48,000 15% 80,000 25% 18.0% 135,000 Net operating income 9,000 As shown by these data, net operating income is budgeted at €9,000 for the month and break- even sales at €750,000. Assume that actual sales for the month total €800,000 as planned. Actual sales by product are: Spaghetti, €224,000; Tortellini, €304,000; and Fettuccini, €272,000. Considering the fact that the company met its €800,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted.
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coursehero_chapter 6 problems - PROBLEM 6-18B Missing Data...

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