Question: Predecting sales and variable costs using contribution margin Bloom company management predicts that it will incur fixed costs of $160,000 and earn protax income of

Predecting sales and variable costs using contribution margin Bloom company management predicts that it will incur fixed costs of $160,000 and earn protax income of $164,000 in the next period. Its expected contribution margin ratio is 25% use this information to compute the amounts of

(1) Total Dollar sales.

(2) Total Variable costs.

Step by Step Solution

★★★★★

3.31 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Computation of the following Given information Fixed cost 160000 pro tax Inco... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-M-A-P-C (1241).xlsx

300 KBs Excel File

Students Have Also Explored These Related Managerial Accounting Questions!

Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%. Use this information...

Stewart Company management predicts that it will incur fixed costs of $230,000 and earn pretax income of $350,000 in the next period. Its expected contribution margin ratio is 25%. Use this...

Orlando Company management predicts that it will incur fixed costs of $250,000 and earn pretax income of $350,000 in the next period. Its expected contribution margin ratio is 60%. Use this...

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following Sales (14,000 units) Cost of goods sold $2,814,000 Direct materials...

Exercise 18-15 (Algo) Predicting sales and variable costs using contribution margin LO C2 Bloom Company predicts it will incur fixed costs of $270,000 and earn income of $330,000 in the next period,...

Exercise 18-15 (Algo) Predicting sales and variable costs using contribution margin LO C2 Bloom Company predicts it will incur fixed costs of $267,000 and earn income of $353,100 in the next period....

Exercise 1815 (Algo) Predicting sales and variable costs using contribution margin LO C2 Bloom Company predicts it will incur fixed costs of $253,000 and earn income of $395,900 in the next period....

Exercise 21-15 (Algo) Predicting sales and variable costs using contribution margin LO C2 Bioom Company predicts it will incur fixed costs of $269,000 and earn income of $337,900 in the next period....

Exercise 18-15 (Algo) Predicting sales and variable costs using contribution margin LO C2 Bioom Company predicts it will incur foxed costs of $263,000 and earn income of $381,100 in the next period,...

i am trying to understand the solouti Bloom Company management predicts that it will incur xed costs of$260.000 and earn pretax income of $510000 in the next period, I15 expected contribution margin...

A simply supported slab with an effective span of 5 m is to be designed to carry a live load of 3.0 kN/m 2 , plus floor finishes and ceiling loads of 1.5 kN/m 2 . The slab is supported over 200 mm...

Stan Stuart from Stuart and Steigler LLP has been assigned to audit the local college bookstore. One of the first things he does to plan the evaluation of the companys internal control is to tour the...

Question 5 9 of 7 5 . Which of the following is an eligible expense for the Child and Dependent Care Credit? The cost of a private primary school tutor. Day camp fees. Overnight summer camp fees. The...

1. Suppose we had purchased eight shares of Phat and one share of GRRL Power. We can calculate the value of our investment in each month and then take the ratio of Phat to GRRL Power as follows: Phat...

Scenario Analysis In the previous problem, you feel that the values are accurate to within only 10 percent. What are the best-case and worst-case NPVs?

Sensitivity Analysis McGilla Golf would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. What is the sensitivity of the NPV to each of...

Break-Even Analysis Hybrid cars are touted as a green alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the 2006 Honda Accord Hybrid, which had a list price...

In the search you just watched, Andrew included amount outstanding in his screening criteria. Why does he include this? He wants to include cheaper bonds. He wants to ensure sufficient liquidity. He...

A researcher conducts a study to determine what the population proportion is for a given characteristic. It is believed from previous studies that the proportion of the population will be at least...

In answering the following questions, it is given that the potential investment has the following range of possible outcomes and probabilities: 15% probability of a -20% return, 20% probability of a...