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Double checking accounting homework. There are 3 problems. Thanks P1. The left column lists several cost classifications. The right column presents short definitions of those

Double checking accounting homework. There are 3 problems. Thanks

image text in transcribed P1. The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of the cost best described by the definition. A. Total Cost B. Mixed Cost C. Variable Cost D. Curvilinear Cost E. Step-Wise Cost F.Fixed Cost _______1. This cost is the combined amount of all the other costs. _______2. This cost remains constant over a limited range of volume; when it reaches the end of its limited range, it changes by a lump sum and remains at that level until it exceeds another limited range. _______3. This cost has a component that remains the same over all volume levels and another component that increases in direct proportion to increases in volume. _______4. This cost increases when volume increases, but the increase is not constant for each unit produced. _______5. This cost remains constant over all volume levels within the productive capacity for the planning period. _______6. This cost increases in direct proportion to increases in volume; its amount is constant for each unit produced. P2. Stan's Hot Bikes has enjoyed several years of business success, but recently the company has seen some indications of a slowdown in sales. The company's owner has decided to increase the advertising budget by 10% and reduce sales prices by 4%. The following partial income statement shows the company's results for the most recent quarter. Sales (50 units sold) Less Variable costs Contribution margin Less Fixed costs Net operating income $800,000 560,000 $240,000 175,000 $65,000 Required. Part 1. Assuming that the advertising budget was $30,000 for the quarter (above) and was included in the fixed costs, calculate Stan's Hot Bikes new net income or loss if the changes mentioned above are made. You should assume that the variable costs will not change if Stan implements the preceding changes. Use the template below. You must show how you calculated sales, variable costs and fixed costs to receive credit. Check figure: Updated net operating income will be lower than $33,000 but greater than $29,000. Sales $ Less Variable costs Contribution margin Less Fixed costs Net operating income $ Part 2. Calculate the 1) contribution margin per unit and 2) contribution margin ratio based on the original figures presented above (with no changes made by Mike). You must show your work to receive credit. Use the related formulas that are found in your textbook or in the slides. P3. Ben Flush founded Flush Plumbing Co after graduating from college. He wanted to be competitive so they set his rate for house calls at a very modest $100. This $100 is the revenue that he earns for each call. After paying the company's gas for this truck and other variable costs of $60 per house call, Ben thought there would be enough profit. He set his fixed salary at $50,000. Assume that there are no other fixed costs at all. Required. Part 1. Calculate the number of house calls (per unit) the company must make to break-even. You must show your work to receive credit. Use the related formulas that are found in your textbook or in the slides. Part 2. Assume the company had 1,250 house calls for its first year. Compute the contribution margin and net operating profit or loss using the template below. You must fill in the entire template to receive credit. Sales $ Less Variable costs Contribution margin Less Fixed costs Net operating income $ Part 3. Calculate the sales dollars needed to breakeven. You must show your work to receive credit. Use the related formulas that are found in your textbook or in the slides

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