Reference: Survey of Accounting 6th edition Book

Based on Chapter 15

The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 5,500 $ 6,700 Cost of Goods Sold (3,200) (3,900) Gross Margin 2,300 2,800 Variable Cost (1, 100) (1, 350) Fixed Cost (700) (550) Net Income 500 $ 900 Based on this information Ashton Company has aThe following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $12, 060 $15, 800 Cost of Goods Sold (5,800) (7,800) Gross Margin 6, 200 8,060 Variable Cost (2,400) (3,300) Fixed Cost (3,300) (2,500) Net Income tA 500 $ 2, 200 Based on this information Ashton Company has aThe following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 9,060 $11, 600 Cost of Goods Sold (4,600) (000'9) Gross Margin 4, 400 5,600 Variable Cost (1, 800) (2,400) Fixed Cost (2,100) (1, 600) Net Income +A 500 $ 1, 600 Based on this information Ashton Company has aThe following information was drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $13, 599 $19,999 $21,199 Cost of Goods Sold (6,?99) (8,699) (7,259) Gross Margin 6,899 19,499 13,859 Variable Cost (2,?99) (3,459) (4,359) Fixed Cost (1,?99) (1,T99) (2,999) Net Income $ 21499 $ 5,259 $ 7:533 Based on this information the The following information waa drawn from the accounting records of Smith Company Static Budget Flexible Budget Actual Results Sales $19,999 1. 39,999 $34,399 Cost of Goods Sold (?,899) (19,999) (7,999) Gross Margin 11,299 19,299 26,599 Variable Cost (3,999) (5,199) {3",199) Fixed Cost (2,999) (2,999) (3,199) Net Income $ 4,599 $ 11,399 $15,399 Based on this information the The following information was drawn from the accounting records of Smith Comicianyr Static Budget Flexible Budget Actual Results Sales $1}',999 $ 26,999 $29,599 Cost of Goods Sold (33499) (19,999} (?,599) Gross Margin 9,699 16,999 21,999 Variable Cost (3,499) {4,599} (6,199) Fixed Cost (2,499) {2,499} (2,?99) Net Income $ 3.399 $ 9,199 $13,199 Based on this information the The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 3,200 units: Revenues $ 94,060 Variable Costs (64, 000) Contribution Margin 30,000 Fixed Costs (21, 000) Net Income $ 9,060 If Carlos actually produced 2,100 units, the flexible budget would show variable costs ofThe cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 5,000 units: Revenues $ 164, 000 Variable Costs (122, 500) Contribution Margin 41 , 500 Fixed Costs (25, 500) Net Income $ 16,006 If Carlos actually produced 3,700 units, the flexible budget would show fixed costs amounting toAmanda Manufacturing Company prepared the following static budget income statement: Revenues $ 406, 250 Variable Costs (281 , 250) Contribution Margin 125 , 000 Fixed Costs (60, 000) Net Income $ 65,000 The budgeted costs were based on a planned sales volume of 12,500 units. Actual production was 7,500 units. The amount of net income based on a flexible budget of 7,500 units would have been