Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the question, with the particular blank parts bolded or highlighted, so that they can be quickly read, thank you. I am having difficulty

image text in transcribed

image text in transcribed

Please answer the question, with the particular blank parts bolded or highlighted, so that they can be quickly read, thank you. I am having difficulty finding the annual profit and incremental profit, please provide solution thanks.

The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Central Valley Company Comparative Income Statement March April June Sales in units 6.900 6,400 8,100 9,800 Sales revenue $793,500 $736,000 $931,500 $1,127,000 Less: Cost of goods sold 421,350 397,440 484,380 574,770 May $372,150 $338,560 $447,120 $ 552.230 Gross margin Less: Operating Expenses Shipping expense Advertising expense Salaries and commissions Insurance expense Amortization expense Total operating expenses $ 65,300 98,500 166,500 18,500 51,500 $ 52,200 98,500 133,500 18,500 51,500 $ 68,800 98,500 171,000 18,500 51,500 61,500 98,500 164,000 18,500 51,500 $400,300 $354,200 $408,300 $ 394,000 Net income $ (28,150) $ (15,640) $ 38,820 $ 158,230 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) + Cost of goods sold Shipping Salaries & commission II + per unit per unit per unit = + 2. Assume that fixed costs are incurred uniformly throughout the year. Compute the annual break-even sales, and the profit if 89,500 units are sold during the year. (Round "Break-even sales" answer to nearest whole number.) units Break-even sales Annual profit (89,500 units) 3. Calculate the change in profit if the selling price were reduced by S14.0 each and annual sales were to increase by 8,800 units. 4. Determine the change in profit if the company were to increase advertising by $119,000 and if this were to increase sales by 8,800 units

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

SAP S/4HANA Financial Accounting Certification Guide

Authors: Stefanos Pougkas

1st Edition

1493215507, 978-1493215508

More Books

Students also viewed these Accounting questions

Question

2. (1 point) Given AABC, tan A b b

Answered: 1 week ago