Scribd Logo
Carica

Benvenuto in Scribd!

  • Question

    Caricato da

    HawJingZhi
    25 visualizzazioni4 pagine
    Sales are expected to be 22,550 units at $160 per unit, totaling $3,608,000 in revenue. Cost of goods sold is expected to be equal to total production costs for the year. Production costs include costs from various departments that were estimated to total $2,880,000. The expected contribution margin ratio is 25%. Break-even sales in units is 22,000 and in dollars is $3,520,000. The margin of safety is $88,000 in dollars and 2.4% of sales. The operating leverage is 1.3.

    Descrizione originale:

    Titolo originale

    Question.docx

    Copyright

    © © All Rights Reserved

    Formati disponibili

    DOCX, PDF, TXT o leggi online da Scribd

    Hai trovato utile questo documento?

    Questo contenuto è inappropriato?

    Segnala questo documento
    Sales are expected to be 22,550 units at $160 per unit, totaling $3,608,000 in revenue. Cost of goods sold is expected to be equal to total production costs for the year. Production costs include costs from various departments that were estimated to total $2,880,000. The expected contribution margin ratio is 25%. Break-even sales in units is 22,000 and in dollars is $3,520,000. The margin of safety is $88,000 in dollars and 2.4% of sales. The operating leverage is 1.3.

    Copyright:

    © All Rights Reserved
    Scarica in formato DOCX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    25 visualizzazioni4 pagine

    Question

    Caricato da

    HawJingZhi
    Sales are expected to be 22,550 units at $160 per unit, totaling $3,608,000 in revenue. Cost of goods sold is expected to be equal to total production costs for the year. Production costs include costs from various departments that were estimated to total $2,880,000. The expected contribution margin ratio is 25%. Break-even sales in units is 22,000 and in dollars is $3,520,000. The margin of safety is $88,000 in dollars and 2.4% of sales. The operating leverage is 1.3.

    Copyright:

    © All Rights Reserved
    Scarica in formato DOCX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 4

    Question: Wolsey Industries Inc. expects to maintain the sam...

    Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The
    total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the
    various department heads were asked to submit estimates of the costs for their departments during the year. A summary
    report of these estimates is as follows:
    It is expected that 22,550 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,350
    units.

    Required:

    A Prepare an estimated income statement for 2016. Refer to the Labels and Amount
    . Descriptions list provided for the exact wording of the answer choices for text entries.

    B What is the expected contribution margin ratio?


    .

    C Determine the break-even sales in units and dollars. Round your answers to the nearest
    . whole number.

    D Construct a cost-volume-profit chart on your own paper. What is the break-even sales?
    .

    E What is the expected margin of safety in dollars and as a percentage of sales? Round
    . your answers to the nearest whole number.

    F. Determine the operating leverage. Round to one decimal place.


    A. Prepare an estimated income statement for 2016. Refer to the Labels and Amount
    Descriptions list provided for the exact wording of the answer choices for text entries.
    Required:
    Required:

    Potrebbero piacerti anche