Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651644d4b7b0_1246651644c98ac0.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651644e41cd8_1256651644d89542.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651644f349e7_1266651644e7eec3.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6651645026c30_1276651644f7762d.jpg)
Transcribed Image Text:
Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses Operating income Sales revenue Variable expenses: Cost of goods sold Sales commissions Creative Bubbles, Inc. Flexible Budget Income Statement Month Ended October 31 Flexible Budget per Output Unit 65,000 Output Units (Kits) 70,000 75,000 Creative Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon to view the master budget income statement.) Creative Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $6,000. Fixed utilities will be unchanged by any volume increase. Requ 1. Pr the 70 2. Gr CO Vol the 3. WH see as Re the Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 65,000, 70,000, and 75,000 kits. 2. Graph the behavior of the company's total costs. Use total costs on the y-axis and volume (in thousands of bubble kits) on the x-axis. 3. Why might Creative Bubbles' managers want to see the graph you prepared in Requirement 2 as well as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach? 0 Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses: Salary expense Depreciation expense Rent expense Utility expense Total expenses Operating income Sales revenue Variable expenses: Cost of goods sold Sales commissions Creative Bubbles, Inc. Flexible Budget Income Statement Month Ended October 31 Flexible Budget per Output Unit 65,000 Output Units (Kits) 70,000 75,000 Creative Bubbles, Inc., produces multicolored bubble solution used for weddings and other events. (Click the icon to view the master budget income statement.) Creative Bubbles' plant capacity is 72,500 kits. If actual volume exceeds 72,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $6,000. Fixed utilities will be unchanged by any volume increase. Requ 1. Pr the 70 2. Gr CO Vol the 3. WH see as Re the Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 65,000, 70,000, and 75,000 kits. 2. Graph the behavior of the company's total costs. Use total costs on the y-axis and volume (in thousands of bubble kits) on the x-axis. 3. Why might Creative Bubbles' managers want to see the graph you prepared in Requirement 2 as well as the columnar format analysis in Requirement 1? What is the disadvantage of the graphic approach? 0
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Aaron Engines Ltd. operates small engine repair outlets and is a tenant in several of Tran Holdings Inc.'s strip shopping malls. Aaron signed several lease renewals with Tran that each called for a...
-
AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troys...
-
Intangible Assets Determine the balance sheet amounts to be reported by Wisp Corporation at December 31, 2000, for each of the following: a. A copyright is purchased for $60,000 on January 1, 2000,...
-
Refer to problem 3-37. Prepare a balance sheet as of November 30, 20X0, and an income statement for the month of November. Prepare the retained earnings column of a statement of stockholders' equity....
-
What do Niles-Yokum/Wagner think are emerging issues in the field of aging? Group of answer choices Diversity and innovation in the aging networks Importance of surpressing change in provided...
-
FTC Capital recently issued bonds that mature in 14 years. They have a par value of $1,000 and have an annual coupon of 4.75%. If the current market interest rate is 5.2%, at what price should the...
-
4 Two students are working together to build a birdhouse. Student 1 applies a force of 10 N to a wooden board in order to slide it across the table to Student 2. If the force of friction resisting...
-
Its for filling out a pretend 1040, schedule 3, schedule 8812, form 8863, and a schedule EIC. Filing as Head of Household with one dependant. Everything I have filled in so far is marked as correct,...
-
Access the most recent income statement and balance sheet of your company that you selected in Module Two. Given your position or intended position, identify, calculate, and interpret at least one...
-
Explain the concepts of pluralism and assimilation and describe how they affect the rites of passage of individuals, and those you selected. References Santrock, J. W. (2020). Life-Span Development...
-
7. (8 pts) Choose either (a) or (b). You only need to solve one problem. (a) A water tank is shaped like an inverted cone with height 8 m and base radius 1 m. If the tank is full, how much work is...
-
Exit Ticket 10 16 1 At a school 40 of the students play a sport If there are 80 athletes at the school how many students are there in the school A 32 B 200 C 320 D 3200
-
On 1 July 2014 Sergio Bari started a business called MiGame Ltd. The trial balance for the first year is shown below. Additional information at 30 June 2015: * Inventory is valued at 890. *...
-
Beauty Plus Ltd started trading on 1 July 2014. At the end of the second year of trading, the bookkeeper provides the following trial balance from the accounting system. Additional information at 30...
-
Explain the going concern basis of accounting by defining the principles involved. Illustrate your answer by taking the example of the valuation of tangible assets in the statement of financial...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App