Citrus company buys a variety of citrus fruit from growers and then processes the fruit into...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Citrus company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. Current cost structure: Current annual sales revenue Current Variable costs Current Fixed costs totaled Contribution $2,000,000 44% of Sales $600,000 $1,120,000 Required: Answer the following questions below the question and use cell references to make your computations. 1. What is the current contribution margin ratio? $ Contibution Margin Ratio is 56.00% 56.00 What is the current break-even point in sales dollars? $1,071,428.57 Break even point in sales is $1,071,429.00 3. Determine the margin of safety in sales dollars. $928,571 Margin of Safety in dollars is $928,571.00 56% 4. Prepare a Contribution margin income statement for the current sales. Sales Less Variable costs Contribution margin Less Fixed costs Profit $2,000,000 $880,000 $1,120,000 $600,000 $520,000 Citrus company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. Current cost structure: Current annual sales revenue Current Variable costs Current Fixed costs totaled Contribution $2,000,000 44% of Sales $600,000 $1,120,000 Required: Answer the following questions below the question and use cell references to make your computations. 1. What is the current contribution margin ratio? $ Contibution Margin Ratio is 56.00% 56.00 What is the current break-even point in sales dollars? $1,071,428.57 Break even point in sales is $1,071,429.00 3. Determine the margin of safety in sales dollars. $928,571 Margin of Safety in dollars is $928,571.00 56% 4. Prepare a Contribution margin income statement for the current sales. Sales Less Variable costs Contribution margin Less Fixed costs Profit $2,000,000 $880,000 $1,120,000 $600,000 $520,000
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the required values using cell references in Excel you can follow these steps 1 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Which of these events happened when Uber tested its self - driving car service in San Francisco? Question 2 1 options: A self - driving Uber ran a red light. Two self - driving Ubers collided with...
-
Cullumber Manufacturing uses a flexible budget. It has the following budgeted manufacturing costs for 24700 pairs of shoes: Fixed Manufacturing Costs, $12500 and Variable Manufacturing Costs, $15.00...
-
CVP Analysis and Special Decisions Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit...
-
An autoglass company located in Detroit produces mirrors for automobiles. The company supplies auto mirrors to a nearby Ford (The Ford Motor Company, Dearborn, MI) plant. The demand for mirrors from...
-
Explain the distinction between a command system and an incentive system. Discuss.
-
What are some of the major steps that have been taken toward the ultimate emergence of a truly nationwide security market?
-
What types of source documents provide information for a job-cost record?
-
The trial balance of the Trishia Company on December 31, 2007 (the end of its annual accounting period) included the following account balances before adjustments: Notes receivable .........$10,000...
-
8000 the following Venn diagram: 600000 A Pr[A] is closest to: 5/18 07/14 B 07/11 E 17 11/20 04/9 07/16 14/17 Pr[B] is closest to: 8/18 05/7 07/16 01/11 06/14 06/9 13/20 10/17 Pr[A U B] is closest...
-
Marine, Incorporated, manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years...
-
Describe two areas you believe you need to improve in order to become better at your job. Also describe two of your best skills/ strengths in reference to your job.
-
Analyze how HR can help organizations manage benefits thus contributing to profitability. Examine the impact of legally required benefits and discretionary benefits on a company's budget Explain how...
-
Tesco's International Growth Strategy Tesco is the largest grocery retailer in the United Kingdom, with a 25 percent share of the local market. In its home market, the company's strengths are reputed
-
5. 1 mole of Carbon (C) is oxidized with 1 mole of air yielding CO, CO 2, O2 and N2 in the products. Assume that CO and CO2 are in equilibrium with, CO CO+ 02, and Kp = 0.2895 If N remains inert,...
-
For its fiscal year ending October 31, 2025, Sheridan Corporation reports the following partial data. Income before income taxes $523,800 Income tax expense (20% x $407,400) 81,480 Income from...
-
! Required information [The following information applies to the questions displayed below.] Silver Company manufactures kites and has the following information available for the month of April: Work...
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
A fixed asset (a machine) was purchased by Adjourn plc on 1 July 20X1 at a cost of 25,000. The company prepares its annual accounts to 31 March in each year.The policy of the company is to depreciate...
-
The Mission Company Ltd, whose year-end is 31 December, has acquired two items of machinery on leases, the conditions of which are as follows: Item Y: Ten annual instalments of 20,000 each, the first...
-
Peter Mullen says in an article sent in to the ASB, the following: the ASB advocates that all leasing type deals should essentially be accounted for in relation to the extent of asset and liability...
Study smarter with the SolutionInn App