I have worked these problems out but I could use some help checking over my answers to make sure they are correct. If you are available I could use your assistance.

Assignment 5b Question 1 Not complete Points out of 16.00 Flag question Question text Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING COMPANY Contribution Income Statement For the Year 2008 Sales $1,000,000 Variable costs Cost of goods sold $460,00 0 Selling and administrative 200,000 (660,000) Contribution margin 340,000 Fixed Costs Factory overhead 192,000 Selling and administrative 80,000 (272,000) Before-tax profit 68,000 Income taxes (38%) (25,840) Assignment 5b WIGGINS PROCESSING COMPANY Contribution Income Statement For the Year 2008 After-tax profit $42,160 HINT: Round the contribution margin ratio to two decimal places for your calculations below. (a) Determine the annual break-even point in sales dollars. $Answer 0 (b) Determine the annual margin of safety in sales dollars. $Answer 0 (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $34,000? Answer 0 (d) With the current cost structure, including fixed costs of $272,000, what dollar sales volume is required to provide an after-tax net income of $160,000? Do not round until your final answer. Round your answer to the nearest dollar. $Answer 0 Assignment 5b (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers. WIGGINS PROCESSING COMPANY Income Statement For the Year 2008 Sales $Answer 0 Answer 0 Variable costs (66% of sales) Contribution margin Fixed costs Net income before taxes Income taxes (38%) Net income after taxes Check Next Answer 0 Answer 0 Answer 0 Answer 0 $Answer 0 Assignment 5b Question 2 Not complete Points out of 8.00 Flag question Question text Alternative Production Procedures and Operating Leverage Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a capitalintensive method or a laborintensive method. The predicted manufacturing costs for each method are as follows: Capital Intensive Labor Intensive Direct materials per unit $5.00 $6.00 Direct labor per unit $5.00 $13.00 Variable manufacturing overhead per unit $5.00 $2.00 $2,580,000.00 $780,000.00 Fixed manufacturing overhead per year Paper Mate's market research department has recommended an introductory unit sales price of $31. The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold. (a) Determine the annual breakeven point in units if Paper Mate uses the: 1. Capitalintensive manufacturing method. Answer 0 units 2. Laborintensive manufacturing method. Answer 0 units (b) Determine the annual unit volume at which Paper Mate is indifferent between the two manufacturing methods. Answer 0 Assignment 5b units (c) Management wants to know more about the effect of each alternative on operating leverage. 1. Explain operating leverage and the relationship between operating leverage and the volatility of earnings. They are positively correlated, with increases in operating leverage accompanied by increases in the volatility of earnings. They have little or no correlation because they are unrelated. They are negatively correlated, with increases in operating leverage accompanied by decreases in the volatility of earnings. 2. Compute operating leverage for each alternative at a volume of 260,000 units. Round your answers two decimal places. CapitalIntensive operating leverage Answer LaborIntensive operating leverage Answer 0 0 3. Which alternative has the higher operating leverage? Why? The capital intensive method has a higher operating leverage because of the greater use of fixed assets. The labor intensive method has a higher operating leverage because of higher variable conversion costs. The labor intensive method has a higher operating leverage because of lower variable manufacturing overhead. The capital intensive method has a higher operating leverage because of the higher variable manufacturing overhead. Check Assignment 5b Question 3 Not complete Points out of 10.00 Flag question Question text Contribution Income Statement and Operating Leverage Florida Berry Basket harvests earlyseason strawberries for shipment throughout the eastern United States in March. The strawberry farm is maintained by a permanent staff of 10 employees and seasonal workers who pick and pack the strawberries. The strawberries are sold in crates containing 100 individually packaged onequart containers. Affixed to each onequart container is the distinctive Florida Berry Basket logo inviting buyers to "Enjoy the berry best strawberries in the world!" The selling price is $100 per crate, variable costs are $85 per crate, and fixed costs are $275,000 per year. In the year 2013, Florida Berry Basket sold 50,000 crates. (a) Prepare a contribution income statement for the year ended December 31, 2013. HINT: Use a negative sign with both "costs" answers. FLORIDA BERRY BASKET Income Statement For the Year Ended December 31, 2013 Sales Variable costs $Answer 0 Answer 0 Answer 0 Contribution margin Answer 0 Fixed costs $Answer Net income 0 Assignment 5b (b) Determine the company's 2013 operating leverage. (Round your answer to two decimal places.) Answer 0 (c) Calculate the percentage change in profits if sales decrease by 10 percent. (Round your answer to one decimal place.) Answer 0 % decrease (d) Management is considering the purchase of several berrypicking machines. This will increase annual fixed costs to $375,000 and reduce variable costs to $81.50 per crate. Calculate the effect of this acquisition on operating leverage and explain any change. (Round your answers two decimal places.) Answer 0 The acquisition of the berrypicking machines will decrease variable costs, thereby increasing the contribution margin. It will also increase fixed costs, thereby increasing the difference between the contribution margin and net income. The net effect would be an increase in operating leverage. The acquisition of the berrypicking machines will increase variable costs, thereby increasing the contribution margin. It will also increase fixed costs, thereby decreasing the difference between the contribution margin and net income. The net effect would be an increase in operating leverage. The acquisition of the berrypicking machines will increase variable costs, thereby increasing the contribution margin. It will also decrease fixed costs, thereby decreasing the difference between the contribution margin and net income. The net effect would be a decrease in operating leverage. The acquisition of the berrypicking machines will reduce variable costs, thereby increasing the contribution margin. It will also reduce fixed costs, thereby increasing the difference between the contribution margin and net income. The net effect would be a decrease in operating leverage. Check Next Question 4 Assignment 5b Not complete Points out of 22.00 Flag question Question text CostVolumeProfit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in each independent case Case A Unit Sales Case B 1,000 Sales revenue $20,000 Variable cost per unit Contribution margin Unit contribution margin Break-even point (units) Margin of safety (units) Check Question 5 Not complete 800 $Answer $600 $Answer 0 Answer Answer $60,000 $Answer 0 $Answer 0 0 $60,000 $Answer $Answer 0 $Answer 0 0 0 $13 0 4,000 2,000 0 100 1,000 Answer 0 $Answer $Answer 0 0 Answer $10 0 0 $Answer $Answer $Answer $Answer 0 0 $800 0 $8,100 Answer 0 $2 $Answer Case D Answer 0 $10 Fixed Costs Net income Case C Assignment 5b Points out of 3.00 Flag question Question text HighLow Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA PRODUCTS INC. Comparative Income Statements For Years Ending December 31, 2007 and 2008 2007 2008 5,000 8,000 Sales revenue $60,000 $96,000 Expenses (64,000) (76,000) Profit (loss) $(4,000) $20,000 Unit sales (a) Determine the breakeven point in units. Answer 0 units (b) Determine the unit sales volume required to earn a profit of $5,000. Answer 0 Check Question 6 Not complete Points out of 6.00 Assignment 5b Flag question Question text CVP Analysis and Special Decisions Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. The most recent year's sales revenue was $4,200,000. Variable costs were 60 percent of sales and fixed costs totaled $1,300,000. Sweet Grove is evaluating two alternatives designed to enhance profitability. One staff member has proposed that Sweet Grove purchase more automated processing equipment. This strategy would increase fixed costs by $200,000 but decrease variable costs to 54 percent of sales. Another staff member has suggested that Sweet Grove rely more on outsourcing for fruit processing. This would reduce fixed costs by $200,000 but increase variable costs to 65 percent of sales. Round your answers to the nearest whole number. (a) What is the current breakeven point in sales dollars? $Answer 0 (b) Assuming an income tax rate of 36 percent, what dollar sales volume is currently required to obtain an aftertax profit of $700,000? $Answer 0 (c) In the absence of income taxes, at what sales volume will both alternatives (automation and outsourcing) provide the same profit? $Answer 0 Assignment 5b (d) Briefly describe one strength and one weakness of both the automation and the outsourcing alternatives. Automation has less risk and a lower breakeven point. Outsourcing has higher profits if sales increase. Automation has higher profits if sales increase and a lower breakeven point. Outsourcing has less risk. Automation has less risk. Outsourcing has higher profits if sales increase and a lower break even point. Automation has higher profits if sales increase. Outsourcing has less risk and a lower break even point. Check Next Question 7 Not complete Points out of 2.00 Flag question Question text Multiple Product BreakEven Analysis Presented is information for Stafford Company's three products. Assignment 5b A Unit selling price B C $6 $8 $7 (4) (5) (3) Unit variable costs $2 $3 $4 Unit contribution margin With monthly fixed costs of $112,500, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sales of product A at the monthly breakeven point. Answer 0 units Check Question 8 Not complete Points out of 22.00 Flag question Question text CostVolumeProfit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in each independent case. Assignment 5b Case 1 Case 2 Case 3 Case 4 $Answer Sales revenue $120,000 $Answer 0 $80,000 0 $Answer Contribution margin Fixed costs $Answer 0 $60,000 $30,000 $Answer $Answer $Answer 0 0 0 $Answer $Answer 0 Net income $5,000 Answer Answer Question 9 Not complete Points out of 6.00 0 0.40 0 $Answer 0 $Answer 0 0.20 Answer $Answer 0 $Answer Next 0 Answer $Answer Check 0.50 0 Contribution margin ratio Margin of safety (dollars) 0 $10,000 Answer 0 Variable cost ratio Break-even point (dollars) 0 $20,000 0 $25,000 0 $20,000 $Answer 0 Assignment 5b Flag question Question text MultipleLevel BreakEven Analysis Jensen Associates provides marketing services for a number of small manufacturing firms. Jensen receives a commission of 10 percent of sales. Operating costs are as follows: Unit-level costs $ 0.04 per sales dollar Sales-level costs $ 300 per sales order Customer-level costs $ 900 per customer per year Facility-level costs $ 60,000 per year (a) Determine the minimum order size in sales dollars for Jensen to break even on an order. $Answer 0 (b) Assuming an average customer places four orders per year, determine the minimum annual sales required to break even on a customer. $Answer 0 (c) What is the average order size in (b)? $Answer 0 (d) Assuming Jensen currently serves 100 customers, with each placing an average of four orders Assignment 5b per year, determine the minimum annual sales required to break even. $Answer 0 (e) What is the average order size in (d)? $Answer 0 (f) Explain the differences in the answers to (a), (c), and (e). In the longrun the most important costs are facility level costs. The most important costs to cover are unit level costs. In multiple customer firms the breakeven point decreases as the number of customers increases. Even if individual orders have a positive contribution, some customers may be unprofitable. Check Question 10 Not complete Points out of 5.00 Flag question Assignment 5b Question text Profitability Analysis Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $250,000. (a) Determine its breakeven point in sales dollars. $Answer 0 (b) Determine last year's margin of safety in sales dollars. $Answer 0 (c) Determine the sales volume required for an annual profit of $80,000. Round your answers to the nearest dollar. $Answer 0 Check Next Assignment 5b