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Need help with these managerial accounting question. Thank you for your help. Problem 19-2A (Part Level Submission) Jorge Company bottles and distributes B-Lite, a diet
Need help with these managerial accounting question. Thank you for your help.
Problem 19-2A (Part Level Submission) Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 78 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overheadvariable Manufacturing overheadfixed $1,807,700 429,500 357,100 313,700 285,100 Selling expensesvariable Selling expensesfixed Administrative expensesvariable Administrative expensesfixed (a) Your answer is correct. Prepare a CVP income statement for 2014 based on management's estimates. JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2014 $ Sales 1807700 Variable Expenses $ 1100300 Selling Expenses 68000 Administrative Expenses 24782 Total Variable Expenses 1193082 Contribution Margin 614618 Fixed Expenses Cost of Goods Sold 285100 Selling Expenses 66400 Administrative Expenses 60500 Total Fixed Expenses 412000 $68,000 66,400 24,782 60,500 $ Net Income/(Loss) 202618 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (b) Your answer is correct. Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.) $ Variable cost per bottle 0.33 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (c) Your answer is correct. Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Compute the break-even point 2423529 (2) Compute the break-even point 1211765 units $ Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (d) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g, 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Click if you would like to Show Work for this question: LINK TO TEXT Open Show Work LINK TO V Exercise 19-6 (Part Level Submission) PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,540 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $354 and $236, respectively. Production in Units Production Costs Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation 3,540 $8,850 17,700 2,124 1,180 5,310 2,124 1,298 2,832 (a) Your answer is correct. Identify the above costs as variable, fixed, or mixed. Cost Direct materials Variable Direct labor Variable Utilities Mixed Property taxes Indirect labor Variable Supervisory salaries Fixed Maintenance Mixed Depreciation Fixed Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is correct. Calculate variable costs per unit, variable cost per unit for utilities and variable cost per unit for maintenance. (Round answers to 2 decimal places e.g. 2.25.) $ Variable cost per unit 9 $ Variable cost per unit for utilities 0.50 Variable cost per unit for maintenance 0.30 $ Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 3 used (c) Your answer is incorrect. Try again. Calculate the expected costs when production is 5,900 units. Cost to produce 5,900 units Click if you would like to Show Work for this question: $ Open Show Work LINK TO TEXT Part C: I tried answering 57820, answer was wrong. Problem 20-2A (Part Level Submission) Lorge Corporation has collected the following information after its first year of sales. Sales were $2,339,200 on 146,200 units; selling expenses $350,880 (40% variable and 60% fixed); direct materials $747,082; direct labor $416,670; administrative expenses $409,360 (20% variable and 80% fixed); manufacturing overhead $526,320 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) (2) $ Contribution margin for current year 584800 Contribution margin for projected year 643280 $ $ Fixed costs for current year 695912 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is correct. Compute the break-even point in units and sales dollars for the first year. (Round contribution margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. 2,510.) Break-even point Break-even point units $ 2783648 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (c) Your answer is correct. The company has a target net income of $453,220. What is the required sales in dollars for the company to meet its target? $ Sales dollars required for target net income Click if you would like to Show Work for this question: 4596528 Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (d) If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio? (Round answer to 1 decimal place, e.g. 10.5%.) Margin of safety ratio Click if you would like to Show Work for this question: LINK TO TEXT % Open Show WorkStep by Step Solution
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