In the bedroom furniture division budgeted sales by division and in total for the following month...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the bedroom furniture division budgeted sales by division and in total for the following month are as follows: Percent of total sales Sales Variable expenses Contribution Margin Fixed expenses Operating income French 48 % $ 240,000 $72,000 $ 168,000 100 % CM ratio 30 % 70% Meditrainian 20 % $ 100,000 $80,000 $ 20,000 Breakeven point in sales dollars Fixed expenses = $223,600 0.52 100 % 80% 20% = $430,000 Welsh 32 % $ 160,000 $ 88,000 $ 72,000 55% Total 100 % $500,000 100 % 45% 100 % $240,000 48 % $ 260,000 52% $223,600 $36,400 As shown by this data, operating income is budgeted at $36.400 for the month and breakeven sales are $430,000. Assume actual sales for the month total $500,000 as planned Actual sales by divisions are $ French - $160,000; Meditrainian - $200,000 and Welsh - $140,000. Prepare a contribution income statement for actual sales based on the above data and explain why the operating Income is not as budget. In the bedroom furniture division budgeted sales by division and in total for the following month are as follows: Percent of total sales Sales Variable expenses Contribution Margin Fixed expenses Operating income French 48 % $ 240,000 $72,000 $ 168,000 100 % CM ratio 30 % 70% Meditrainian 20 % $ 100,000 $80,000 $ 20,000 Breakeven point in sales dollars Fixed expenses = $223,600 0.52 100 % 80% 20% = $430,000 Welsh 32 % $ 160,000 $ 88,000 $ 72,000 55% Total 100 % $500,000 100 % 45% 100 % $240,000 48 % $ 260,000 52% $223,600 $36,400 As shown by this data, operating income is budgeted at $36.400 for the month and breakeven sales are $430,000. Assume actual sales for the month total $500,000 as planned Actual sales by divisions are $ French - $160,000; Meditrainian - $200,000 and Welsh - $140,000. Prepare a contribution income statement for actual sales based on the above data and explain why the operating Income is not as budget.
Expert Answer:
Answer rating: 100% (QA)
To prepare a contribution income statement for actual sales based on the provided data well use the actual sales figures and the contribution margin p... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
Students also viewed these accounting questions
-
Select one assay in the lab you are working in or have worked in and perform a cost per test analysis. The actual dollar values do not have to be perfect for this assignment; the values should be...
-
Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three productssinks, mirrors, and vanities. Budgeted sales by product and in total for the coming...
-
Marlin Company, a wholesale distributor, has been operating for only a few months. The company sells three productssinks, mirrors, and vanities. Budgeted sales by product and in total for the coming...
-
The time it takes to get a cars oil changed at Speedy Lube is distributed normally with a mean of 12 min and a standard deviation of 2 min. Compute the probability that a customer will have her or...
-
For the linkage shown, determine the force P required for equilibrium when M= 320lbin. 15 in. 15 in.- 350 15 in.
-
A depreciation schedule for semitrucks owned by Ichiro Manufacturing was requested by your auditor soon after December 31, 2023, showing the additions, retirements, depreciation, and other data...
-
How and why does the architecture of the information system differ from software architecture?
-
A blending tank that provides nearly perfect mixing is connected to a downstream unit by a Long transfer pipe. The blending tank operates dynamically like a first-order process. The mixing...
-
You are going to loan money to your brother-in-law. He is borrowing $1000 for six months. You have learned that the value of money may go down and buy less in the future. You decide to charge your...
-
Business transactions completed by Hannah Venedict during the month of September are as follows. a. Venedict invested $60,000 cash along with office equipment valued at $25,000 in a new business...
-
An external load as shown in the figure below, calculate the increase in vertical stress at points A, B and C. All points are located under the ground surface G.S. at a depth of 6 m. Aqv= 125 kPa z=...
-
On December 1, 2016, Mosby, a U.S. company, sells goods to a German company, with payment of 300,000 euros to be received on March 1, 2017. Mosby also enters into a forward contract on December 1,...
-
Describe the difference between anonymous and confidential.
-
Consider a non-current liability that has resulted in a tax liability for Falko Inc. in its 2023 financial statements. Assuming there are no other (current) tax liabilities or assets. Classify...
-
Describe the fraud exposure rectangle and why an examination of each area should be made to detect financial statement fraud.
-
Three bonds are issued with an annual coupon rate of 7%; however, the first bond is priced at 110 per 100 par value bond using a market discount rate of 5%, the second bond is priced at par value...
-
. Solve the system of equations = 321 - ; = - x wills_x,(0)=3,3()++
-
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
-
What are the major components of a management control system?
-
Decentralization has benefits and costs. Name three of each.
-
Julia Rozzi had obtained a new truck with a list price, including options, of $27,000. The dealer had given her a generous trade-in allowance of $6,000 on her old truck that had a wholesale price of...
-
From the following trial balance of G. Foot after his first year's trading, you are required to draw up a statement of profit or loss for the year ending 30 June 2016. A statement of financial...
-
At the beginning of the financial year on 1 April 2017, a company had a balance on plant account of 372,000 and on provision for depreciation of plant account of 205,400. The company's policy is to...
-
(a) Distinguish between capital and revenue expenditure. (b) Drake Ltd took delivery of a computer network on 1 July 2016, the beginning of its financial year. The list price of the equipment was...
Study smarter with the SolutionInn App