Johansen Company had $210,000 of operating income in 2022, when the selling price per unit was $150,
Question:
Johansen Company had $210,000 of operating income in 2022, when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per-unit data and total fixed costs to remain the same in 2023. The president of Johansen Company is under pressure from shareholders to increase operating income by $52,000 in 2023.
Instructions
a. Calculate the number of units sold in 2022.
b. Calculate the number of units that would have to be sold in 2023 to reach the shareholders’ desired operating income.
c. Assume that Johansen Company sells the same number of units in 2023 as it did in 2022. What would the selling price have to be in order to reach the shareholders’ desired operating income?
Step by Step Answer:
a b c 150Q 90Q 5...View the full answer
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
Students also viewed these Business questions
-
Johansen Company had $150,000 of operating income in 2012 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects...
-
Naylor plc had 210,000 of net income in 2019 when the selling price per unit was 150, the variable costs per unit were 90, and the fixed costs were 570,000. Management expects per unit data and total...
-
Johansen Company had $210,000 of operating income in 2016 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects...
-
Rachael Ray Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock for $20,000. 3. Recorded depreciation of $17,000. 4. Paid salaries of $9,000....
-
Examine the information in Exhibit 10.6 and answer the following questions: a. What was Husky's comprehensive income in fiscal 2010 and 2011? b. What are the sources of the other comprehensive loss...
-
https://www.footlocker-inc.com/content/dam/flincfoundation/footlockerinc_documents/annual-reports/Foot_Locker-2021-Annual-Report.pdf...
-
10. Training a new employee should not last more than a week. True or False
-
Jameson is a 32-year-old father of three who thought he had finally found a career. While working as an assistant manager at a local shoe store, a customer, Vijay, befriended Jameson and invited him...
-
Question 25 (2 points) According to NACUBO, tuition waivers that are offered as compensation to graduate assistants who conduct research or teach classes would be recorded as: an instructional...
-
Mound Company expects to sell 90000 units annually of a new product at 15 Unit variable cost is 9 To make the product Mound needs machinery costing 600000 The machinery has a 10year life with no...
-
Maritime Manufacturing Company produces and sells a high-quality handbag. During 2022, handbag sales were $600,000, the contribution margin ratio was 40%, and the margin of safety was $300,000....
-
Newton Cellular Ltd. manufactures and sells the TopLine cellphone. For its 2022 business plan, Newton Cellular estimated the following: The March financial statements reported that sales were not...
-
For the regression in Exercise 19: A student tries taking the reciprocal of customers and produces the plot shown below: a) Would you recommend this transformation? Why or why not? b) What would you...
-
Pink Jeep Tours offers off-road tours to individuals and groups visiting the Southwestern U.S. hotspots of Sedona, Arizona, and Las Vegas, Nevada. Take a tour of the companys Web site at...
-
The following are unrelated accounting practices: 1. Pine Company purchased a new \(\$ 30\) snow shovel that is expected to last six years. The shovel is used to clear the firm's front steps during...
-
Identify whether the following statements are true or false. 1. One argument for IFRS is that there is less globalization in the world. 2. IFRS is accepted as GAAP in every country of the world. 3....
-
You will need isometric dot paper for this question. Part of a pattern using four rhombuses is drawn on isometric dot paper below. By drawing two more rhombuses, complete the pattern so that it has a...
-
Fred Flores operates a golf driving range. For each of the following financial items related to his business, indicate the financial statement (or statements) in which the item would be reported:...
-
Spring grazing of cattle on mule deer range has been an effective tool to a. Increase forbs for mule deer b. Increase grass for mule deer c. Increase browse for mule deer
-
Fahrad Inc. sells all of its product on account. Fahrad has the following accounts receivable payment experience: Percent paid in the month of sale .........10 Percent paid in the month after the...
-
Managerial accounting techniques can be used in a wide variety of settings. As we have frequently pointed out, you can use them in many personal situations. They also can be useful in trying to find...
-
Managerial accounting techniques can be used in a wide variety of settings. As we have frequently pointed out, you can use them in many personal situations. They also can be useful in trying to find...
-
Distinguish between managerial and financial accounting as to (a) Primary users of reports, (b) Types and frequency of reports, and (c) Purpose of reports.
-
nformation pertaining to Noskey Corporation s sales revenue follows: November 2 0 2 1 ( Actual ) December 2 0 2 1 ( Budgeted ) January 2 0 2 2 ( Budgeted ) Cash sales $ 1 0 5 , 0 0 0 $ 1 1 5 , 0 0 0...
-
The management team of Netflix maintains a stable dividend using the Lintner model: Dt+1 = Dt + EPS Target Payout Where Dt (Dt+1) = dividend in the current period t (the next period t + 1) EPSt =...
-
#1 #2 hapter 50 10 D Werences lav Help Required information [The following information applies to the questions displayed below) Archer Company is a wholesaler of custom-built air-conditioning units...
Study smarter with the SolutionInn App