Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of
Question:
Jagswear Ltd. earned operating income of $100,000 during 2021. The company wants to earn operating income of $140,000 during 2022. Its fixed costs are expected to be $56,000, and variable costs are expected to be 30% of sales.
Instructions
a. Determine the required sales to meet the target operating income during 2022.
b. Fill in the dollar amounts for the summary income statement for 2022 below based on your answer to part (a).
Transcribed Image Text:
Sales revenue Variable costs Contribution margin Fixed costs Operating income $ $
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (4 reviews)
a If variable cost ratio is 30 then contribution ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119731825
6th Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
Question Posted:
Students also viewed these Business questions
-
Study the information given below and answer the following questions: (25 Marks) 1.1 Calculate the Payback Period of both machines (answers expressed in years, months and days). (5 marks) 1.2 Which...
-
Jagswear, Inc. earned operating income of $100,000 during 2012. The company wants to earn operating income of $140,000 during 2013. Its fixed costs are expected to be $56,000, and variable costs are...
-
Jagswear, Inc. earned operating income of $100,000 during 2016. The company wants to earn operating income of $140,000 during 2016. Its fixed costs are expected to be $56,000, and variable costs are...
-
Svetlana (45) and Petro (43) are both employed and each have their own group benefit plan that provides family coverage. Svetlana's birthday is in June and Petro's is in December. The couple has one...
-
Examine the information provided in Exhibit 10.6 and find the following information: a. Retained earnings on December 31, 2010 and 2011. b. Dividends paid on common and preferred shares in 2010 and...
-
JoanahasrecentlyopenedBeautyInc.,astorespecializinginfashionablestockings.Ms.Joanahasjustcompletedacourseinmanagerialaccounting,andshebelievesthatshecanapplycertainaspectsofthecoursetoherbusiness....
-
3. I do not mind if someone asks me questions about how to do a job. True or False
-
The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither...
-
Adelman Art is considering the purchases of an art gallery in New Orleans. Adleman would buy the assets of the gallery for $400,000. Projections for Adelman's first year of ownership are: Sales =...
-
Potts, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked...
-
The management of Borealis Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called WISCO, is a component of the...
-
Montreal Seating Co., a manufacturer of chairs, had the following data for 2022: Instructions a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollars. c. Calculate...
-
A closing price of 101.375 on a particular day for an IBM bond represents 101.375 percent of $1,000, or 1.01375 $1,000 = $1,013.75. Treasury bond prices are quoted in 32nds and may be shown as...
-
The following information is available for two different types of businesses for the 2011 accounting period. Dixon Consulting is a service business that provides consulting services to small...
-
Marino Basket Company had a \(\$ 6,200\) beginning balance in its Merchandise Inventory account. The following information regarding Marino's purchases and sales of inventory during its 2011...
-
On March 6, 2011, Bob's Imports purchased merchandise from Watches Inc. with a list price of \(\$ 31,000\), terms \(2 / 10, n / 45\). On March 10, Bob's returned merchandise to Watches Inc. for...
-
The following events apply to Tops Gift Shop for 2012, its first year of operation: 1. Acquired \(\$ 45,000\) cash from the issue of common stock. 2. Issued common stock to Kayla Taylor, one of the...
-
Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost. a. Transportation-in. b. Insurance on the office building. c. Office supplies. d. Costs...
-
What are some management practices ranchers can use to reduce losses from poisonous plants?
-
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
-
A music company has these costs: Advertising ........... Paper inserts for CD cases Blank CDs ............CD plastic cases Depreciation of CD image burner ......Salaries of sales representatives...
-
A music company has these costs: Advertising ........... Paper inserts for CD cases Blank CDs ............CD plastic cases Depreciation of CD image burner ......Salaries of sales representatives...
-
Match the descriptions that follow with the corresponding terms. Descriptions: 1. ______ Inventory system in which goods are manufactured or purchased just as they are needed for use. 2. ______ A...
-
Larren Buffett is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and Federal Income Tax withholding (FIT) may be incorrect. Larren is...
-
The major justification for adding Step 0 to the U.S. GAAP impairment test for goodwill and indefinite lived intangibles is that it: A. Saves money spent estimating fair values B. Results in more...
-
Regarding research and experimental expenditures, which of the following are not qualified expenditures? 3 a. costs of ordinary testing of materials b. costs to develop a plant process c. costs of...
Study smarter with the SolutionInn App