Question: Help needed, urgent. These should be in a clearer resolution sorry for the poor quality this is about as good as i can get it
Sales (45,000) Cost of Goods Sold Gros Margin Operating Expenses Ashton Company For the Year Ended December 11, 2013 Direct material Direct labor Verable Mo Sales commissions Drect materials (vanabe) Drect labor (variabl Manufacturing Overhaal) Commissions (vertable) Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses Net Operating income (Loss) Requirement 2 illing costs for the past 5 years along with total units sold follow S $ Use the high low method to calculate the following Show your work ha ANSWER Variable cost per unit b. Totalfied costs (Please use the high point) c Write out the coct equation for billing cost d. Total billing costs if 40,000 units are sold Insert your answer for requirement 1 int income statement abowe in the blank provided for Billing (Unknown) Selling price per unit is 53 and variable manufacturing overhead is 30 cents per unit All variable expenses in the company vary in terms of units sold (produced. There was no change in beginning or ending inventones. Ash's plant has a capacity of 80.000 units per year. The company has been operating at look for several years, Management is shutying several poble cours of action to determine what should be done to make next year profitable Requirement Rado Ashton's 2013 income statement in contebution margin foomat, showing both a total comanda per un column in the space provided below (Hint: Ovide the total column t Hint: You will need to calculate the variable and fixed components of Manufacturing Overhad (MC) and billing Aliount Total Units 45,000 Per Unit Sales $450,000.00 $ 30.00 Variable Cont 500,000 296,800 181,200 Complete Requirement 2 below and int Sales in Units Billing Costs 47,500 S 5,250 6,300 44,000 $ 42.000 S 6.500 41.000 $90,000 79,300 5500 27,000 9,800.00 200,000 60.000 Tear 2012 2011 2030 2009 2008 80 1 Variable costs 14 Directen 35 Deco 06 Vans MOM 87 en 88 thing 09 Varble biline 90 Total Variable com 01 Contribution Man 92 Costs 93 File MH 34 Advertising 95 Sales and man 26 Fived billing 27 Total costs 7 Net Opetting income 39 00 01 Regiment 02 Calculate Ashtrent en point in behandlat Show your work 03 Units 34 ANSWER Units 3 7 3 Bollan Dollars Requirements Multiply the lowest dilt (other than zero) from the last four digits of you tudent ID number by 10.000 and enter for below The vice president sents that the selling price be lowered by to and advertising be reduced by She is confident that this action will increase sales to 60,000 units The new selling priceprice per unit would be The new total advertising would be Prepare a new contribution main income statement using the vice president's recommendation. Remember when volume changes total variable costs change proportionately. To get total variable costs, multiply the per unit amounts requirement by the newest Total Units 50.000 Amount Pert New from above Sales Variable costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Virable costs Contribution Marcin Fixed Costs Fixed MOH Advertising Sales and admn salanes Fixed billing Total Fixed Costs ret Opevting Income New from above Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work. Answer 2. If sales increase by 10%, operating income will increase by: Percent Dollars Presented below is Ashton Company's Income Statement prepared using absorption costing: (Please assume that Ashton Company sells all units it prododuces) Requirement 1: Replace the two unknown amounts (?) in A. and B. as directed. To find the unknown for B. you will have to complete Requirement 2 Then, complete the totals on the income statement. Ashton Company Income Statement For the Year Ended December 31, 2013 $450,000 Sales (45,000 units) Cost of Goods Sold Direct materials (variable) Direct labor (variable) Manufacturing Overhead (mixed) $90,000 78,300 98,500 266,800 183,200 Gross Margin Operating Expenses Commissions (variable) Shipping (variable) 27,000 9,000.00 Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses 100,000 ? B.Complete Requirement 2 below and insert result 60,000 Net Operating Income (Loss) S Cequirement: Requirement : Billing costs for the past 5 years along with total units sold follows: Year 2012 2011 2010 2009 Sales in Units Billing Costs 47,500 S 6,750 44,000 $ 6,300 42,000 $ 6,180 45,500 $ 6,580 2008 46,000 $ 6,600 Use the high-low method to calculate the following: a. Variable cost per unit Show your work here: ANSWER b. Total fixed costs (Please use the high point) c. Write out the cost equation for billing costs d. Total billing costs if 45,000 units are sold Insert your answer for requirement 1 in the income statement above in the blank provided for Billing (Unknown B) Selling price per unit is $10 and variable manufacturing overhead is 30 cents per unit. All variable expenses in the company vary in terms of units sold (produced). There was no change in beginning or ending inventories. Ashton's plant has a capacity of 80,000 units per year. The company has been operating at loss for several years. Management is studying several possible courses of action to determine what should be done to make next year profitable. Requirement 3: Redo Ashton's 2013 income statement in contribution margin format, showing both a total column and a per unit column in the space provided below. (Hint: Divide the total column by units to get per unit amount) Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. Total Units Amount 45,000 Per Unit $ 450,000.00 $ 10.00 Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn. salaries Fixed billing Total Fixed Costs Net Operting Income 3 Requirment : Calculate Ashton's current breakeven point in both units and dollars. Show your work. Units: ANSWER Units Dollars: Dollars Requirements: Multiply the lowest digit other than zero) from the last four digits of you student ID number by 10,000 and enter for C. below. C. a. The vice president suggests that the selling price be lowered by 10% and advertising be reduced by She is confident that this action will increase sales to 60,000 units. The new selling price price per unit would be: The new total advertising would be: 96. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember, when volume changes [number of units). o total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement by the new number of units. b. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember when volume changes (number of units). total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement by the new number of units. Total Units Amount 00.000 Per Unit New from above Sales Variable costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admin salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirements: Calculate the degree of operating tiverage wing the vice-president's proposed Income statement above 12 decimal place) Show your work Answer b. Prepare a new contribution margin income statement using the vice president's recommendation Remember when volume changes inuenber of unite) total variable costs change proportionately. To get tolal variable costs, multiply the per unit amounts frorn Flequirement 3 by the new number of units. Total Units Armount 60.000 Per Unit New from above Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirement 6 a Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work Answer b. If sales increase by 10% operating income will increase by Percent Dollars plus The W Mere Sale und Wurth De Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal plac Show your work. Answer b. If sales increase by 10%, operating income will increase by: Percent Dollars Presented below is Ashton Company's Income Statement prepared using absorption costing (Pruse assume that show Company sells allais ir pradeduces) Requirement 1: Replace the two unknown amounts) in A and B. as directed. To find the unknown for B, you will have to complete Requirement 2. Then, complete the totals on the income statement Ashton Company Income Statement For the Year Ended December 31, 2013 $450,000 Sales (45,000 units) Cost of Goods Sold Direct materials (variable) Direct labor (variable) Manufacturing Overhead (mixed) 590,000 78,300 98,500 266,00 183.200 Gross Margin Operating Expenses 27,000 Commissions (variable) Shipping (variable) Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses JA. Multiply the HIGHEST digit from the last four digits of your student ID entered above by 1,000 and enter the result here 100,000 B.Complete Requirement below and insert result ? 00.000 Net Operating Income (Loss) Net Operating Income (Loss) Requirement 2: Billing costs for the past 5 years along with total units sold follows: Year 2012 2011 2010 2009 Sales in Units 47,500 44,000 42.000 45,500 Billing Costs 6,750 6,300 6,180 6,5801 2008 46,000 6,6001 Use the high-low method to calculate the following: Show your work here: ANSWER a. Variable cost per unit b. Total fixed costs (Please use the high point) c. Write out the cost equation for billing costs d. Total billing costs if 45,000 units are sold Insert your answer for requirement 1 in the income statement above in the blank provided for Billing (Unknown B) Selling price per unit is $10 and variable manufacturing overhead is 30 cents per unit. All variable expenses in the company vary in terms of units sold (produced). There was no change in beginning or ending inventories. Ashton's plant has a capacity of 80.000 units per year. The company has been operating at loss for several years. Management is studying several possible courses of action to determine what should be done to make next year profitable. Requirement 3: Redo Ashton's 2013 income statement in contribution margin format, showing both a total column and a per unit column in the space provided below. (Hint: Divide the total column by units to get per unit amount) Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. Total Units Amount 45,000 Per Unit 450,000 101 Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income Requirment 4: Calculate Ashton's current breakeven point in both units and dollars. Show your work Units: ANSWER Units Dollars: Dollars Requirements: c. Multiply the lowest digit (other than zero) from the last four digits of you student ID number by 10,000 and enter for C. below. a. The vice president suggests that the selling price be lowered by 10% and advertising be reduced by She is confident that this action will increase sales to 60,000 units. The new selling price price per unit would be: The new total advertising would be: b. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember, when volume changes (number of units). total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement 3 by the new number of units. Total Units 60,000 Amount Per Unit New from above Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work. Answer b. If sales increase by 10%, operating income will increase by: Percent Dollars Sales (45,000) Cost of Goods Sold Gros Margin Operating Expenses Ashton Company For the Year Ended December 11, 2013 Direct material Direct labor Verable Mo Sales commissions Drect materials (vanabe) Drect labor (variabl Manufacturing Overhaal) Commissions (vertable) Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses Net Operating income (Loss) Requirement 2 illing costs for the past 5 years along with total units sold follow S $ Use the high low method to calculate the following Show your work ha ANSWER Variable cost per unit b. Totalfied costs (Please use the high point) c Write out the coct equation for billing cost d. Total billing costs if 40,000 units are sold Insert your answer for requirement 1 int income statement abowe in the blank provided for Billing (Unknown) Selling price per unit is 53 and variable manufacturing overhead is 30 cents per unit All variable expenses in the company vary in terms of units sold (produced. There was no change in beginning or ending inventones. Ash's plant has a capacity of 80.000 units per year. The company has been operating at look for several years, Management is shutying several poble cours of action to determine what should be done to make next year profitable Requirement Rado Ashton's 2013 income statement in contebution margin foomat, showing both a total comanda per un column in the space provided below (Hint: Ovide the total column t Hint: You will need to calculate the variable and fixed components of Manufacturing Overhad (MC) and billing Aliount Total Units 45,000 Per Unit Sales $450,000.00 $ 30.00 Variable Cont 500,000 296,800 181,200 Complete Requirement 2 below and int Sales in Units Billing Costs 47,500 S 5,250 6,300 44,000 $ 42.000 S 6.500 41.000 $90,000 79,300 5500 27,000 9,800.00 200,000 60.000 Tear 2012 2011 2030 2009 2008 80 1 Variable costs 14 Directen 35 Deco 06 Vans MOM 87 en 88 thing 09 Varble biline 90 Total Variable com 01 Contribution Man 92 Costs 93 File MH 34 Advertising 95 Sales and man 26 Fived billing 27 Total costs 7 Net Opetting income 39 00 01 Regiment 02 Calculate Ashtrent en point in behandlat Show your work 03 Units 34 ANSWER Units 3 7 3 Bollan Dollars Requirements Multiply the lowest dilt (other than zero) from the last four digits of you tudent ID number by 10.000 and enter for below The vice president sents that the selling price be lowered by to and advertising be reduced by She is confident that this action will increase sales to 60,000 units The new selling priceprice per unit would be The new total advertising would be Prepare a new contribution main income statement using the vice president's recommendation. Remember when volume changes total variable costs change proportionately. To get total variable costs, multiply the per unit amounts requirement by the newest Total Units 50.000 Amount Pert New from above Sales Variable costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Virable costs Contribution Marcin Fixed Costs Fixed MOH Advertising Sales and admn salanes Fixed billing Total Fixed Costs ret Opevting Income New from above Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work. Answer 2. If sales increase by 10%, operating income will increase by: Percent Dollars Presented below is Ashton Company's Income Statement prepared using absorption costing: (Please assume that Ashton Company sells all units it prododuces) Requirement 1: Replace the two unknown amounts (?) in A. and B. as directed. To find the unknown for B. you will have to complete Requirement 2 Then, complete the totals on the income statement. Ashton Company Income Statement For the Year Ended December 31, 2013 $450,000 Sales (45,000 units) Cost of Goods Sold Direct materials (variable) Direct labor (variable) Manufacturing Overhead (mixed) $90,000 78,300 98,500 266,800 183,200 Gross Margin Operating Expenses Commissions (variable) Shipping (variable) 27,000 9,000.00 Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses 100,000 ? B.Complete Requirement 2 below and insert result 60,000 Net Operating Income (Loss) S Cequirement: Requirement : Billing costs for the past 5 years along with total units sold follows: Year 2012 2011 2010 2009 Sales in Units Billing Costs 47,500 S 6,750 44,000 $ 6,300 42,000 $ 6,180 45,500 $ 6,580 2008 46,000 $ 6,600 Use the high-low method to calculate the following: a. Variable cost per unit Show your work here: ANSWER b. Total fixed costs (Please use the high point) c. Write out the cost equation for billing costs d. Total billing costs if 45,000 units are sold Insert your answer for requirement 1 in the income statement above in the blank provided for Billing (Unknown B) Selling price per unit is $10 and variable manufacturing overhead is 30 cents per unit. All variable expenses in the company vary in terms of units sold (produced). There was no change in beginning or ending inventories. Ashton's plant has a capacity of 80,000 units per year. The company has been operating at loss for several years. Management is studying several possible courses of action to determine what should be done to make next year profitable. Requirement 3: Redo Ashton's 2013 income statement in contribution margin format, showing both a total column and a per unit column in the space provided below. (Hint: Divide the total column by units to get per unit amount) Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. Total Units Amount 45,000 Per Unit $ 450,000.00 $ 10.00 Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn. salaries Fixed billing Total Fixed Costs Net Operting Income 3 Requirment : Calculate Ashton's current breakeven point in both units and dollars. Show your work. Units: ANSWER Units Dollars: Dollars Requirements: Multiply the lowest digit other than zero) from the last four digits of you student ID number by 10,000 and enter for C. below. C. a. The vice president suggests that the selling price be lowered by 10% and advertising be reduced by She is confident that this action will increase sales to 60,000 units. The new selling price price per unit would be: The new total advertising would be: 96. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember, when volume changes [number of units). o total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement by the new number of units. b. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember when volume changes (number of units). total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement by the new number of units. Total Units Amount 00.000 Per Unit New from above Sales Variable costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admin salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirements: Calculate the degree of operating tiverage wing the vice-president's proposed Income statement above 12 decimal place) Show your work Answer b. Prepare a new contribution margin income statement using the vice president's recommendation Remember when volume changes inuenber of unite) total variable costs change proportionately. To get tolal variable costs, multiply the per unit amounts frorn Flequirement 3 by the new number of units. Total Units Armount 60.000 Per Unit New from above Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirement 6 a Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work Answer b. If sales increase by 10% operating income will increase by Percent Dollars plus The W Mere Sale und Wurth De Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal plac Show your work. Answer b. If sales increase by 10%, operating income will increase by: Percent Dollars Presented below is Ashton Company's Income Statement prepared using absorption costing (Pruse assume that show Company sells allais ir pradeduces) Requirement 1: Replace the two unknown amounts) in A and B. as directed. To find the unknown for B, you will have to complete Requirement 2. Then, complete the totals on the income statement Ashton Company Income Statement For the Year Ended December 31, 2013 $450,000 Sales (45,000 units) Cost of Goods Sold Direct materials (variable) Direct labor (variable) Manufacturing Overhead (mixed) 590,000 78,300 98,500 266,00 183.200 Gross Margin Operating Expenses 27,000 Commissions (variable) Shipping (variable) Advertising (fixed) Billing (mixed) Sales and Administrative salaries Total Operating Expenses JA. Multiply the HIGHEST digit from the last four digits of your student ID entered above by 1,000 and enter the result here 100,000 B.Complete Requirement below and insert result ? 00.000 Net Operating Income (Loss) Net Operating Income (Loss) Requirement 2: Billing costs for the past 5 years along with total units sold follows: Year 2012 2011 2010 2009 Sales in Units 47,500 44,000 42.000 45,500 Billing Costs 6,750 6,300 6,180 6,5801 2008 46,000 6,6001 Use the high-low method to calculate the following: Show your work here: ANSWER a. Variable cost per unit b. Total fixed costs (Please use the high point) c. Write out the cost equation for billing costs d. Total billing costs if 45,000 units are sold Insert your answer for requirement 1 in the income statement above in the blank provided for Billing (Unknown B) Selling price per unit is $10 and variable manufacturing overhead is 30 cents per unit. All variable expenses in the company vary in terms of units sold (produced). There was no change in beginning or ending inventories. Ashton's plant has a capacity of 80.000 units per year. The company has been operating at loss for several years. Management is studying several possible courses of action to determine what should be done to make next year profitable. Requirement 3: Redo Ashton's 2013 income statement in contribution margin format, showing both a total column and a per unit column in the space provided below. (Hint: Divide the total column by units to get per unit amount) Hint: You will need to calculate the variable and fixed components of Manufacturing Overhead (MOH) and billing. Total Units Amount 45,000 Per Unit 450,000 101 Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income Requirment 4: Calculate Ashton's current breakeven point in both units and dollars. Show your work Units: ANSWER Units Dollars: Dollars Requirements: c. Multiply the lowest digit (other than zero) from the last four digits of you student ID number by 10,000 and enter for C. below. a. The vice president suggests that the selling price be lowered by 10% and advertising be reduced by She is confident that this action will increase sales to 60,000 units. The new selling price price per unit would be: The new total advertising would be: b. Prepare a new contribution margin income statement, using the vice president's recommendation. Remember, when volume changes (number of units). total variable costs change proportionately. To get total variable costs, multiply the per unit amounts from Requirement 3 by the new number of units. Total Units 60,000 Amount Per Unit New from above Sales Variable Costs Direct materials Direct Labor Variable MOH Sales commissions Shipping Variable billing Total Variable Costs Contribution Margin Fixed Costs Fixed MOH Advertising Sales and admn salaries Fixed billing Total Fixed Costs Net Operting Income New from above Requirement 6: a. Calculate the degree of operating leverage using the vice-president's proposed income statement above. (2 decimal places) Show your work. Answer b. If sales increase by 10%, operating income will increase by: Percent Dollars
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