Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1800 tons during the year. The manufacturing capacity of the firm's facilities is 3,000 tons per year. (gnore income taxes.) OHIO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 20x1 Sales $900,000 Variable costs Manufacturing $315.000 Selling costs 150,00 Total variable costs $495.000 Contribution nargin 5405.000 Fixed costs: Mariufacturing $100.000 Selling 102.5 Administrative 40, Total fixed costs $247.50 Net Inconc $157.500 4. Ohio Limestone plans to market its product in a new territory, Management estimates that an advertising and promotion program costing 561,500 annually would be needed for the next two or three years. In addition, a 525 per ton sales commission to the sales force in the new territory, over and above the current commission would be required. How many tons would have to be sold in the new territory to maintain the firm's current net income? Assume that sales and costs will continue as in 20x7 in the firm's established territories (Round your answer to 1 decimal place.) Return to Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1.800 tons during the year The manufacturing capacity of the firm's facilities is 3,000 tons per year (ignore income taxes) CHIO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 200 Sales $900.000 Variable costs: Manufacturing $315,00 Selling costs 180,000 Total variable costs $495, Contribution margin $ 105, Fixed costs: Manufacturing $100.000 Selling 102.500 Administrative 40.000 Total fixed costs 5247,500 Net incor $157,500 3. Ohio Limestone has been trying for years to get a foothold in the European market. The company has a potential German customer that has offered to buy 1500 tons at $450 per ton. Assume that all of the firm's costs would be at the same levels and rates as in 20x1. What net income would the firm eam if it took this order and rejected some business from regular customers so as not to exceed capacity? Required information The following information applies to the questions displayed below) Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1800 tons during the year, The manufacturing capacity of the firm's facilities is 3.000 tons per year (gnore income taxes. OHTO LIPESTONE COMPANY Income Statement For the Year Ended December 31, 201 Sales $900,000 Variable costs: Manufacturing $315,000 Selling costs 180.000 Total variable costs $495.000 Contribution margin $405.000 Fixed costs: Manufacturing $100,000 Selling 102.00 40.000 Adestrative Total Fixed cost 5282.500 5152,500 et Income Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,380,000 based on a sales volume of 240,000 video disks. Disk City has been selling the disks for 522 each. The variable costs consist of the 58 unit purchase price of the disks and a handling cost of $2 per disk Disk City's annual fixed costs are $500.000 Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent Ignore income taxes.) Required: 1. Calculate Disk City's break-even point for the current year in number of video disks (Round your final answer up to nearest whole number 2. What will be the company's net income for the current year if there is a 10 percetWincrease in projected unit sales volume? 3. What volume of sales in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $22? (Do not round intermediate calculations, Round your final answer to the nearest whole number.) In order to cover a 20 percent increase in the disk's purchase price for the coming year and still maintain the current contribution margin ratio, what selling price per disk must Disk City establish for the coming year? (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) answer is not complete. Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1800 tons during the year The manufacturing capacity of the firm's facilities is 3,000 tons per year ignore income taxes) OHIO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 2 Sales 0.00 Variable costs Manufacturing $315, Selling costs Total variable costs Contribution margin $405,000 Fixed costs: Manufacturing $100, Selling Adwinistrative 40.000 Total fixed costs $262,50 Net income $157,500 4. Ohio Limestone plans to market its product in a new territory Management estimates that an advertising and promotion program costing $61.500 annually would be needed for the next two or three years. In addition, a 525 per ton sales commission to the sales force in the new territory, over and above the current commission would be required. How many tons would have to be sold in the new territory to maintain the firm's current net income? Assume that sales and costs will continue as in 20xt in the firm's established to 1 decimal place) Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1800 tons during the year The manufacturing capacity of the firm's facilities is 3,000 tons per year (ignore income taxes) OHTO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 20x1 Sales Variable costs: Manufacturing $115.00 Selling costs Total variable costs $495. Contribution margin $405.000 Fixed costs: Manufacturing $10. Selling 107 Adeinistrative Total Fixed costs 5247500 et Income $15.00 3. Ohio Limestone has been trying for years to get a foothold in the European market. The company has a potential German customer that has offered to buy 1500 tons at $450 per ton Assume that all of the firm's costs would be at the same levels and rates as in 20xt. What net income would the firm earn if it took this order and rejected some business from regular customers so as not to exceed capacity Required information The following information applies to the questions displayed below) Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tons during the year The manufacturing capacity of the firm's facilities is 3,000 tons per year. (Ignore income taxes) OHIO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 20x1 Sales 5900,000 Variable costs: Manufacturing 5315,000 Selling costs 180.000 Total variable costs $495.000 Contribution margin 5.000 Fixed costs: Manufacturing $100,000 Selling 107,500 Administrative 40.000 Total Fixed costs 5247.500 $157,500 Net Income Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,380,000 based on a sales volumne of 240,000 video disks. Disk City has been selling the disks for 522 each. The variable costs consist of the $8 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are $500,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent tignore income taxes.) Required: 1. Calculate Disk City's break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.) 2. What will be the company's net income for the current year if there is a 10 percer Wincrease in projected unit sales volume? 3. What volume of sales in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year of the unit selling price remains at 522? (Do not round intermediate calculations. Round your final answer to the nearest whole number) 4. In order to cover a 20 percent increase in the disk's purchase price for the coming year and still maintain the current contribution- margin ratio, what selling price per disk must Disk City establish for the coming year? (Do not round Intermediate calculations Round your finalenswer to 2 decimal places.) 3 Answer is not complete