Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $420,000 Selling expenses-variable $16,800 Direct materials 75,600 Selling expenses-fixed 16,800 Direct labour 50,400 Administrative expenses-variable 8,400 Manufacturing overhead-variable i 16,800 Administrative expenses-fixed 8,400 Manufacturing overhead-fixed 25,200 Assuming fixed costs and net sales are spread evenly throughout the year, determine Cullumber's monthly break-even point in units and dollars. (Round answers to O decimal places, eg. 5,275.) Monthly break-even in units Monthly break-even in dollars Question Part Score: units Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio Annual margin of safety ratio % % --/2 Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio % Annual margin of safety ratio Annual operating income $ Question Part Score: --/3 Determine the percentage increase in annual operating income if Cullumber Corporation increases its selling price by 16% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in profit % Question Part Score Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in unit sales % Question Part Score Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Sales required to earn an operating income of $302,400 $ --/1 --/1 Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $420,000 Selling expenses-variable $16,800 Direct materials 75,600 Selling expenses-fixed 16,800 Direct labour 50,400 Administrative expenses-variable 8,400 Manufacturing overhead-variable i 16,800 Administrative expenses-fixed 8,400 Manufacturing overhead-fixed 25,200 Assuming fixed costs and net sales are spread evenly throughout the year, determine Cullumber's monthly break-even point in units and dollars. (Round answers to O decimal places, eg. 5,275.) Monthly break-even in units Monthly break-even in dollars Question Part Score: units Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio Annual margin of safety ratio % % --/2 Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio % Annual margin of safety ratio Annual operating income $ Question Part Score: --/3 Determine the percentage increase in annual operating income if Cullumber Corporation increases its selling price by 16% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in profit % Question Part Score Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in unit sales % Question Part Score Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Sales required to earn an operating income of $302,400 $ --/1 --/1
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Osborn Manufacturing uses a predetermined overhead rate of $19.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $269,280 of total manufacturing overhead...
-
The table below displays social and health data on a random sample of 11 counties in the United States. For each county, the table shows the percentage of adults who have a graduate degree, the...
-
Oriole Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $440,000 Direct materials 79,200 Direct labour 52,800...
-
A research laboratory receives delivery of a new custom-made cylindrical thin-wall pressure vessel. The pressure vessel has inner radius R = 300 mm, and wall thickness t = 10 mm. The vessel is made...
-
The following is a list of six control plans from this chapter or from Chapter 9. Control Plans A. Digital signatures B. Manually reconcile batch totals C. Preformatted screens D. One-for-one...
-
A student draws the flawed free-body diagram shown in Figure P4.51 to represent the forces acting on a golf ball that is traveling upward and to the right a very short time after being hit off the...
-
6. YOU BE THE JUDGE WRITING PROBLEM World-Wide Coin Investments Ltd. sold rare coins, precious metals, camera equipment, and Coca-Cola collector items. Its stock was registered with the SEC under the...
-
New lithographic equipment, acquired at a cost of $787,500 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $67,500. The manager...
-
10-35. During your audit of Miles Company, you prepared the following bank transfer schedule: MILES COMPANY Bank Transfer Schedule December 31, 20X1 Date Date Bank Accounts Disbursed Deposited Check...
-
Using a diagram or diagrams as appropriate, explain what is meant by the term 'method of least squares' and its role in estimating, and carrying out hypothesis tests for, the intercept and slope...
-
Distinguish between administrative and accounting controls.
-
Sketch a simple common-gate amplifier circuit and discuss the general ac circuit characteristics (voltage gain and output resistance).
-
How do the three roles help communication and cooperation among the auditor, the auditee, and executive management during the follow-up process?
-
Discuss the general conditions under which a common-source amplifier would be used.
-
How do the three ideal roles help to assure that the follow-up process is carried out?
-
Generally, formal assessment of internal revenue taxes of taxpayer subjected to audit and examination shall first be issued Select the correct response: Final Letter of Demand Final Decision on...
-
Explain the buyers position in a typical negotiation for a business. Explain the sellers position. What tips would you offer a buyer about to begin negotiating the purchase of a business?
-
6. Olivetti Office U.S.A., Inc., was located in Newington, Connecticut, and its workers were represented by the United Automobile, Aerospace, and Agriculture Implement Workers of America. The...
-
9. ETHICS The chapter refers in several places to the contentious issue of subcontracting. Make an argument for management in favor of a company's ethical right to subcontract, and one for unions in...
-
8. Labor Day is a national holiday originally intended to celebrate the contributions of working men and women. But for most people today it simply means a day off from work-or the day before school...
Study smarter with the SolutionInn App