{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T00:07:30-04:00", "answer_date": "2024-05-27 00:07:30", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1767301", "url": "\/study-help\/questions\/pr-206a-contribution-margin-breakeven-sales-costvolumeprofit-chart-margin-of-1767301", "question_creation_date_js": "2024-05-27T00:07:30-04:00", "question_creation_date": "May 27, 2024 12:07 AM", "meta_title": "[Solved] PR 20-6A Contribution Margin, Break-Even | SolutionInn", "meta_description": "Answer of - PR 20-6A Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Obj | SolutionInn", "meta_keywords": "pr,20-6a,contribution,margin,break-,sales,cost-volume-profit,chart,safety,operating,leverage,obj", "question_title_h1": " PR 20-6A Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Obj. 2, 3, 4, 5 Wolsey Industries Inc. expects to", "question_title": " PR 20-6A Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety,", "question_title_for_js_snippet": "PR 20 6A Contribution Margin, Break Even Sales, Cost Volume Profit Chart, Margin of Safety, and Operating Leverage Obj 2, 3, 4, 5 Wolsey Industries Inc expects to maintain the same inventories at the end of 2013 as at the beginning of the year The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year A summary report of these estimates is as follows Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs Direct materials $ 46 Direct labor Factory overhead $200,000 Selling expenses Sales salaries and commissions 110,000 Advertising 40,000 Travel 12,000 Miscellaneous selling expense 7,600 Administrative expenses Office and officers' salaries 132,000 Supplies 10,000 Miscellaneous administrative expense 13,400 Total $525,000 $120 R g 40 20 It is expected that 21,875 units will be sold at a price of $160 a unit Maximum sales within the relevant range are 27,000 units Instructions 1 Prepare an estimated income statement for 20Y3 2 What is the expected contribution margin ratio Answer Check Figure 25 3 Determine the break even sales in units and dollars 4 Construct a cost volume profit chart indicating the break even sales 5 What is the expected margin of safety in dollars and as a percentage of sales 6 Determine the operating leverage ", "question_description": "\"image\"image\"image\"image", "transcribed_text": "PR 20-6A Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Obj. 2, 3, 4, 5 Wolsey Industries Inc. expects to maintain the same inventories at the end of 2013 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost + (per unit sold) Production costs: Direct materials..... $ 46 Direct labor .... Factory overhead.. $200,000 Selling expenses: Sales salaries and commissions.... 110,000 Advertising..... 40,000 Travel.... 12,000 Miscellaneous selling expense 7,600 Administrative expenses: Office and officers' salaries..... 132,000 Supplies........ 10,000 Miscellaneous administrative expense.... 13,400 Total...... $525,000 $120 R ||| -g 40 20 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Instructions 1. Prepare an estimated income statement for 20Y3. 2. What is the expected contribution margin ratio? Answer Check Figure: 25% 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? 6. Determine the operating leverage.", "related_book": { "title": "Intermediate accounting", "isbn": "978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094", "edition": "7th edition", "authors": "J. David Spiceland, James Sepe, Mark Nelson", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/270.jpg", "uri": "\/textbooks\/intermediate-accounting-7th-edition-270", "see_more_uri": "" }, "free_related_book": { "isbn": "1032436522", "uri": "\/textbooks\/neurodiversity-coaching-a-practical-guide-1st-edition-978-1032436524-139333", "name": "Neurodiversity Coaching A Practical Guide", "edition": "1st Edition" }, "question_posted": "2024-05-27 00:07:30", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/define-table-authors-with-columns-authorid-int-and-authorname-varchar30add-563803", "description": "DEFINE TABLE AUTHORS WITH COLUMNS AUTHORID INT AND AUTHORNAME VARCHAR(30),ADD COLUMN LEVEL PRIMARY KEY CONSTRAINT FOR AUTHORID, ADD COLUMN LEVEL NOT NULL CONSTRAINT FOR AUTHORNAME 2. 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