Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March. Corporate headquarters building lease $87,100 Cosmetics

1. The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.

Corporate headquarters building lease $87,100 Cosmetics Department sales commissions--Northridge Store $5,830 Corporate legal office salaries $63,700 Store manager's salary-Northridge Store $10,400 Heating-Northridge Store $15,200 Cosmetics Department cost of sales--Northridge Store $33,400 Central warehouse lease cost $12,500 Store security-Northridge Store $22,600 Cosmetics Department manager's salary--Northridge Store $4,340

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

a. $33,400 b. $43,570 c. $98,210 d. $39,230

2.

Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March.

Sales (6,400 units) $403,200
Variable expenses

275,200

Contribution margin 128,000
Fixed expenses

103,500

Net operating income

$24,500

If the company sells 6,300 units, its net operating income should be closest to:

$20,000

$23,979

$22,500

$24,500

3.

Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)

Selling price per unit $ 280.00
Variable expense per unit $ 78.40
Fixed expense per month $ 158,400

The break-even in monthly dollar sales is closest to:

$220,000

$281,600

$158,400

$440,000

4.

Data concerning Cutshall Enterprises Corporation's single product appear below:

Selling price per unit $ 200.00
Variable expense per unit $ 95.50
Fixed expense per month $ 441,890

The unit sales to attain the company's monthly target profit of $27,000 is closest to: (Do not round your intermediate calculations.)

4,229

2,344

4,910

4,487

5.

A cement manufacturer has supplied the following data:

Tons of cement produced and sold 230,000
Sales revenue $934,000
Variable manufacturing expense $285,000
Fixed manufacturing expense $286,000
Variable selling and administrative expense $135,300
Fixed selling and administrative expense $84,000
Net operating income $143,700

The company's contribution margin ratio is closest to:

38.9%

55.0%

69.4%

15.4%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions