Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help filling out the charts for Req 1 A and Req 1 B . These are two separate charts / parts of the

I need help filling out the charts for Req 1A and Req 1B. These are two separate charts/parts of the problem. Req 1A chart is the Income Statement for April and Req 1B chart is the Income Statement for May. Please help me fill out both Req 1A and Req 1B entire charts: the left-hand column lables, the "Amount" and "%" part of the chart, and the Standard Deluxe and Total part of the chart.
These are the options for the left-hand colomns:
Administrative, Advertising, Cost of goods sold, Depreciation, Direct labor, Direct materials, Ending merchandise inventory, Indirect labor, Indirect materials, Manufacturing overhead, Production, Purchases, Sales, Sales commission
Can you also help with Req 3B where it asks "Would the break-even point in May be higher or lower than the break-even point in April?" The options are yes and no.
Here is the entire problem if needed:
Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $68, and the Deluxe set sells for $83. The variable expenses associated with each set are given below.
Standard Deluxe
Variable production costs $ 19.00 $ 34.00
Sales commissions (19% of sales price) $ 12.92 $ 15.77
The companys fixed expenses each month are:
Advertising $ 109,000
Depreciation $ 22,900
Administrative $ 65,000
Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current monthMayare down substantially from April. Sales, in sets, for the last two months are given below:
Standard Deluxe Total
April 4,4002,4006,800
May 1,4005,4006,800
Required:
1-a. Prepare contribution format income statements for April.
1-b. Prepare contribution format income statements for May.
3-a. Compute the break-even point in dollar sales for April.
3-b. Would the break-even point in May be higher or lower than the break-even point in April?Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e..1234 should be entered
as 12.3).)
image text in transcribed

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

Survey of Accounting

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

3rd Edition

978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856

More Books

Students also viewed these Accounting questions