Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66576fd3cfe1e_29166576fd3ca356.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66576fd4637bf_29266576fd44f4f4.jpg)
Transcribed Image Text:
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Fixed expenses are $3,240 per month. Required: Warm $ 8.00 Cozy $12.00 $ 2.00 2,700 units $ 6.00 900 units 1. Assuming the sales mix above, do the following: a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm % Cozy Total % % b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) Break-even sales dollars Margin of safety in dollars Margin of safety in percentage % c. Compute the break-even point in units for the company as a whole and the margin of safety in both units (pairs of gloves) and percentage of sales. (Round percentage answer to 2 decimal places.) Break-even units Margin of safety in units Margin of safety in percentage % Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Fixed expenses are $3,240 per month. Required: Warm $ 8.00 Cozy $12.00 $ 2.00 2,700 units $ 6.00 900 units 1. Assuming the sales mix above, do the following: a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm % Cozy Total % % b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) Break-even sales dollars Margin of safety in dollars Margin of safety in percentage % c. Compute the break-even point in units for the company as a whole and the margin of safety in both units (pairs of gloves) and percentage of sales. (Round percentage answer to 2 decimal places.) Break-even units Margin of safety in units Margin of safety in percentage %
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The ledger of Molindo Company has the following work in process account. Production records show that there were 400 units in the beginning inventory, 30% complete, 1,100 units started, and 1,200...
-
A business sells goods for 1,000 paid into its bank account. The entries to be made are: a. Debit Sales Credit Bank b. Debit Inventory Credit Bank c. Debit Bank Credit Sales d. Debit Banl~ Credit...
-
Melanie-Rae Manufacturing Co. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials requisitioned and for direct...
-
Find a basis of the subspace of R^(4) defined by the equation -4x_(1)-7x_(2)+4x_(3)+3x_(4)=0.
-
The diameter D of a tumor, in millimeters, t days after it is detected, is modeled by: D(t) = 8e0.0331t a) What was the diameter of the tumor when it was originally detected? 8.269 xD(0) = 8...
-
Given the relation U below, use ordered pair notation to express the relation U o U. UoU {Ex: (a, b), (b, c) 1 a b U C 2 3
-
Please write ARMv7 assembly program for following C program. Assume that variables are stored in memory and their addresses can be obtained by using ADR pseudo op? i = 10; if (i>j) { if (j <5) { a =...
-
Innovation is at the heart of a business. It is the "process of taking a creative idea and turning it into a useful product, service, or method of operation" . To understand how businesses innovate,...
-
What is the output of the following code. 6 points Arr is string array of size 2X2 row and col is the index counters of Arr S="Basra is the Center of Economy" . For row = 0 To 2 For col = 0 To 2...
-
Problem 4.3 (MATH 461 only) Let K be a cone in X, i.e., K is nonempty and ax K whenever I K and a 0. Show that K is convex K+K CK.
-
From the fitted trendline, we can see that on average, a country with an additional $1,000 of GDP per person tends to have an increase in carbon emissions per person equal to _________ tons
-
A year ago Pod Ltd bought 225,000 1 fully paid ordinary shares of Pea Ltd for a consideration of 500,000. Pea Ltds share capital and share premium were each the same as at todays date. Simplified...
-
The statements of financial position for Maxi Ltd and Mini Ltd are set out below. On 1 April last year, Maxi Ltd bought 1,500,000 shares of Mini Ltd for a total consideration of 5 million. At that...
-
It has been suggested that too much information might be as bad as too little information for users of annual reports. Explain.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App