Question: Please help explain this. Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costsare $14.40 per unit.

Please help explain this.

Please help explain this. Skaters, Inc. plans to sell 90,000 skateboards next

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costsare $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and ?xed,$604,800 per quarter. What are the budgeted earnings for next quarter? (Do not consider federalincome taxes.) Skaters Inc.Projected Income Statement For the Quarter ZDXXSales Revenue (90,000 X $36) $3,240,000 Cost of Goods Sold (90,000 X $14.40) 1,296,000 Gross margin 1,944,000Selling Expenses and Administrative expenses:Variable (90,000 X $7.20) $648,000Fixed 604,800 Total selling and administrativeexpenses $1,252,800 Net Income/Earnings $691,200

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 80,000 Robbins, Capital 70,000 Prince is allocated 70 percent of all profits and losses...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Scenario A Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per unit; and...

Q:

Scenario A Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per...

Q:

Scenario A Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit. Selling and administrative expenses are: variable, $7.20 per...

Q:

This assignment consists of two independent scenarios for which computations should be shown. Scenario A Skaters, Inc. plans to sell 90,000 skateboards next quarter at a price of $36 per unit....

Q:

Johnson and Gomez, Inc. is a small firm involved in the production and sale of electronic business products. The company is well known for its attention to quality and innovation. During the past 15...

Q:

Usually the fights about which creditor should get the collateral occurs in a bankruptcy proceeding. It is very common for more than one creditor to have a security interest in personal property that...

Q:

QUESTION 4 1 POINT h ( x ) = l n x x 2 - x What is lim x 1 h ( x ) ? Provide your answer below: 1

Q:

Liquid methanol is pumped from a large storage tank through a 1-in.ID pipe at a rate of 3.00gal/mm. (a) At what rate in (i) ft lb f /s and (ii) hp is kinetic energy being transported by the methanol...

Q:

A bag is gently pushed off the top of a wall at A and swings in a vertical plane at the end of a rope of length l Determine the angle for which the rope will break, knowing that it can withstand a...

Q:

A light train made of two cars travels at 72 km/h. The mass of car A is 18 Mg and the mass of car B is 13 Mg. When the brakes are suddenly applied, a constant braking force of 19 kN is applied to...

Q:

A bullet is fired with a horizontal velocity of 500 m/s through a 3-kg block A and becomes embedded in a 2.5-kg block B. Knowing that blocks A and B start moving with velocities of 3 m/s and 5 m/s,...

Q:

What are the shortest-wavelength X-rays emitted by electrons striking the face of a 33.5-kV TV picture tube? What are the longest wavelengths?

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

(a) How does a system of standard costing enable a business to operate on the principle of management by exception? (b) Some of the following materials and labour variances have been wrongly...

Q:

Borrico Ltd manufacture a single product and they had recently introduced a system of budgeting and variance analysis. The following information is available for the month of July 2014: = 1 Budget...

Q:

Discuss the reasons why companies pursuing different corporate strategies need to implement these strategies using different combinations of organizational structure, control, and culture LO1