Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead...
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Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead cost (Fixed) $ 35,000 Overhead (Variable) $ 20,000 Sales Return /Allowance $2,500 Selling commission (variable ] $ 39,600 Supplies $2,600 Selling commission [fixed] $ 15,000 Prepaid expense $11,000 Variable admin expenses $ 24500 Accrued cost $7900 Fixed admin expenses $ 20,000 Tax 25% Interest expenses $5,420 Capacity of production 4,000 units Units sold 3,500 Units produced 3,500 Hint : all selling and admin costs are operating expenses REQUIRED 1. Calculate the net income using contribution approach 2. Accounting method] Calculate Net income using the absorption method [ Financial 3. Find CM per unit and the Contribution Margin Ratio 4. Determine the breakeven sales in units and dollars 5. Draw a graph to show the profit and lost and breakeven point for this company [BE graph] Calculate margin of safety in dollars and in percentage. Explain what this concept means to a cost accountant. 7. 6. The sales manager believes that a project of the company could increase sales by 25% but variable cost will also decrease by $5,000 and fixed cost will increase by $ 85,000. Should the company accept the project or reject ? Determine the sales revenue necessary to generate before tax profit if the after tax is$75,00O. The tax rate is 18% 8. Determine sales revenue necessary to generate after-tax profit of $85,000. 9. Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead cost (Fixed) $ 35,000 Overhead (Variable) $ 20,000 Sales Return /Allowance $2,500 Selling commission (variable ] $ 39,600 Supplies $2,600 Selling commission [fixed] $ 15,000 Prepaid expense $11,000 Variable admin expenses $ 24500 Accrued cost $7900 Fixed admin expenses $ 20,000 Tax 25% Interest expenses $5,420 Capacity of production 4,000 units Units sold 3,500 Units produced 3,500 Hint : all selling and admin costs are operating expenses REQUIRED 1. Calculate the net income using contribution approach 2. Accounting method] Calculate Net income using the absorption method [ Financial 3. Find CM per unit and the Contribution Margin Ratio 4. Determine the breakeven sales in units and dollars 5. Draw a graph to show the profit and lost and breakeven point for this company [BE graph] Calculate margin of safety in dollars and in percentage. Explain what this concept means to a cost accountant. 7. 6. The sales manager believes that a project of the company could increase sales by 25% but variable cost will also decrease by $5,000 and fixed cost will increase by $ 85,000. Should the company accept the project or reject ? Determine the sales revenue necessary to generate before tax profit if the after tax is$75,00O. The tax rate is 18% 8. Determine sales revenue necessary to generate after-tax profit of $85,000. 9.
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Answer rating: 100% (QA)
1 Net income using Contribution method 22500000 250000 2000000 20250000 2000000 3960000 2450000 8410... View the full answer
Related Book For
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
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