Solitaire Company's fixed budget performance report for June follows. The $330,000 budgeted expenses include $281,600 variable expenses and $48,400 fixed expenses. Actual expenses include $55,900 fixed expenses. Sales (in units) Sales (in dollars) Total expenses Income from operations Fixed Budget Actual Results Variances 8,8003311, 2003 $440,000 $560,000 $120,000 F 330,000 3 92,000 62,000 U $110,000 $168,000 $ 58,000 Prepare a flexible budget performance report showing any variances between budgeted and actual results. List fixed and variable expenses separately. SOLITAIRE COMPANY Flexible Budget Performance Report For Month Ended June 30 Flexible Budget Actual Results Variances S 560,000 S 560,000 358.4007 3 02,5001 55.900 Favorable $ 168.000 $ 223,900 $ 55.900 Favorable 48,400 55,900 7.500 Unfavorable $ 119,600 $ 168,000 $ 48,400 Favorable O No variance Sales Variable expenses Contribution margin Fixed expenses income from operations Required information d information [The following information applies to the questions displayed below.] Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Pixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials $915,000 Direct labor 240.000 Machinery repairs (variable cost) 60,000 Depreciation-Plant equipment straight-line) 300,000 Deilities ($45,000 s variable) 180.000 Plant management salaries 190,000 1,885,000 Gross profit Selling expenses Packaging 75.000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 75.000 3455,000 Income from operations $ 245,000 Required: 182. Prepare flexible budgets for the company at sales volumes of 14.000 and 16.000 units and classify all items listed in the fixed budget as variable or fixed. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Flexible Budget Variable Amount Total Fired per Unit Cost 200.00 Flexible Budget for Units Sales Unit Sales of of 14.0DD 1 6,000 $ 2,800,000 $ 3,200,000 111 61.000 Sales Variable costs Direct materials Direct labor Machinery repairs les Packaging Shipping 1600 854,000 224,000 56,000 56.000 70,000 98,000 976,000 256,000 64,000 64,000 80,000 112,000 5.00l 7.00 97.00 103.00 1,358,000 1,442,000 1.552,000 1,648,000 S Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Advertising expense Entertainment expense Plant management salaries Utilities Sales salary Salaries 300.000 150.000 75.000 190,000 180,000 235,000 230.000 300.000 150.000 75.000 190,000 180,000 235,000 230.000 300.000 150.000 75.000 190,000 180,000 235,000 230,000 Total fixed costs Income from operations $ 1,360,000 $ 1.360,000 S 82.000 $1,360.000 $ 288.000 Prev 234 of 8 Next > Help Save 190,000 1,885,000 1,115,000 VELLEN , Plant management salari Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 75,000 105,000 235,000 415,000 150,000 230,000 75,000 455,000 245,000 $ The company's business conditions are improving. One possible result is a sales volume of 18,000 units. The company president is onfident that this volume is within the relevant range of existing capacity. How much would operating income increase over the 2017 udgeted amount of $245,000 if this level is reached without increasing capacity? PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) 15,000 18,000 Contribution margin (per unit) $ 103.00 $ 103.00 ontribution margin $ 1,545,000 $ 1.854.000 xed costs 1,360,000 1,360,000 Operating income $ 185,000 $ 494,000 $ 309,000 Operating income increase Required information The following information applies to the questions displayed below.) Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. ad below) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $3,000,000 Cost of goods sold Direct materials $915,000 Direct labor 240,000 Machinery repairs (variable cost) 60,000 Depreciation Plant equipment (straight-line) 300,000 Utilities ($45,000 is variable) 180,000 Plant management salaries 190,000 1,885,000 Gross profit 1,115,000 Selling expenses Packaging 75,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 415,000 General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 75.000455,000 Income from operations $ 245,000 4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2017 could fall to 12.000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY NE Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 15 ml INN INN 300,000 180,000 190,000 1,885,000 1.115.000 Depreciation Plant equipment straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary(fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations 75,000 105,000 235,000 415,000 150.000 230,000 75,000 455,000 245.000 $ 4. An unfavorable change in business is remotely possible: in this case, production and sales volume for 2017 could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.) PHOENIX COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (in units) 15.000 12.000 Contribution margin (per unit) $ 103.00 $ 103.00 Contribution margin $ 1,545,000 $ 1.236.000 Fored costs 1,380,000 1.360,0 Operating income (loss) $ 185,000 (124.000 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Snowmobile $19.610 10.500 4.400 3,410 Raw materials Employee wages Dept. manager salary Supplies used Depreciation Equip. Utilities Rent Totals Budget ATV $27,600 20.600 5,300 1,000 12,600 550 6,400 $ 74,050 Combined $ 47,210 31.100 9,700 4.410 18,700 Snowmobile $19.520 10,770 4,500 3,270 6,100 340 5.400 $49,900 2.2012,600 Actual ATV Combined $28.920 $48.440 21,340 32.110 4.500 9.000 1.020 4.290 12.600 18.700 510 850 6,400 11,800 $75,290 $125,190 10700 920 5, 800 $50,190 12,200 $124,240 Prepare a responsibility accounting report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Amount Responsibility Accounting Performance Report Dept. Manager, Snowmobile Department For the Year Budgeted Actual Amount Over (Under) Amount Actual Amount Budget Controllable Costs Raw materials $ 19,6105 19,520 5 1 90) Employee wapes 1 0,500 10.770 270 Supplies used 3,4103 3.270 (140) Depreciation Equipment 6 ,1001 6.100 0 Totals $ 39,620 $ 39.660 S 4 0 Required information The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,450 2,350 2.683 351 Cheese Division $4,600 4,500 3.927 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Choose Numerator: Investment Center Operating income Beverages Cheese $ Profit Margin Choose Denominator; 7 Sales 3511 6361$ = Profit Margin Profit margin 2.6833 331313.08% 3.927 16 20% Required information (The following information applies to the questions displayed below.) A food manufacturer reports the following for two of its divisions for a recent year (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2.450 2,350 2,683 Cheese Division $4,600 4,500 3.927 636 1. Compute return on investment 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers Required 1 Required 2 Required 3 Compute investment turnover for the year. (Enter your answers in millions Investment Turnover Choose Numerator: Choose Denominator Investment Center Sales Average invested assets = Beverages 2. 683 3 2 .400 Cheese $ 3.927 $ 4.550 F Investment Tumover Investment turnover L0.86 Hp Save & Exit Required information The following information applies to the questions displayed below) A food manufacturer reports the following for two of its divisions for a recent year otto of 821100) (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Cheese Division Division $2.450 $4,600 4,500 2.6833 ,927 351 2,350 Assume that each of the company's divisions has a required rate of return of 8.00%. Compute residual income for each division (Enter your answers in millions.) (5 millions) Average assets Targeted return Target income Residual income Operating income Less: Target income Residual Beverage Cheese $ 2.400 $ 4,550 8% 8% is 192 $ 364 Beverage Cheese $ 3515 1921 1595 Apple Inc. reports the following for three of its geographic segments for a recent year. Smillions Operating income Sales Americas Europe 1181China $ 26,717 $17,025 $8,741 63,93941,883 35,417 Compute profit margin for each division. (Round your answers to 1 decimal place.) Profit Margin Americas Europe China