Phelps Glass Incorporated has reported the following financial data: net revenues of $11.9 million, variable costs of $5.19 million,controllable fixed costs of $2.19 million, noncontrollable fixed costs of $1.19 million, and nontraceable costs of $690,000.What are the controllable margin, CPC, and operating income, respectively?$5,190,000; $3,000,000; $690,000$2,190,000; $1,880,000; $690,000$4,520,000; $3,330,000; $2,640,000$11,900,000; $2,190,000; $1,880,000

Calculation of Controllable Margin and CPC at Operating IncomeBased on the provided financial data,…

Answered: Phelps Glass Incorporated has reported…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $162,500 investment opportunity with the following cost and revenue characteristics: Sales $ 1,300,000 440,000 860,000 600,000 $ 260,000 $ 812,500 Contribution margin ratio Fixed expenses $ 260,000 80 % of sales $ 182,000 The company's minimum required rate of return is 15%. 2. What is last year's turnover? Note: Round your answer to 1 decimal place.
Sheridan Corp. had total variable costs of $148,200, total fixed costs of $139,200, and total revenues of $285,000. (a1) Calculate contribution margin ratio. Contribution margin ratio %
Sheridan Company had the following operating data for the year for its computer division: sales, $700000; contribution margin, $171000; total fixed costs (controllable), $119000; and average total operating assets, $300000. What is the controllable margin for the year? O $171000. O 57%. O $52000. O 17.3%.
The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and variable costs were $13,552. Capacity per period is a sales volume of $32,000. Compute the total contribution margin.
The following CVP income statements are available for Cullumber Corp. and Ivanhoe, Inc. Cullumber Ivanhoe, Inc. Corp. Sales revenue $742,000 $742,000 Variable costs 371,000 225,250 Contribution margin 371,000 516,750 Fixed costs 238,500 384,250 Net income $132,500 $132,500 (a) Your answer is correct. Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Cullumber 2.8 Ivanhoe 3.9 eTextbook and Media Assistance Used Attempts: 2 of 5 used (b) Assume that sales revenue decreases by 20%. Prepare a CVP income statement for each company. (Do not round intermediate calculations.) Cullumber Corp. Ivanhoe , Inc. 2$ $ 2$ $ (>
The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:
The following CVP income statements are available for Cullumber Corp. and Ivanhoe, Inc. Cullumber Ivanhoe, Inc. Corp. Sales revenue $742,000 $742,000 Variable costs 371,000 225,250 Contribution margin 371,000 516,750 Fixed costs 238,500 384,250 Net income $132,500 $132,500 (a) Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Cullumber Ivanhoe
The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $170,300 $408,000 Variable costs 68,300 244,800 Contribution margin $102,000 $163,200 Fixed costs 51,000 27,200 Income from operations $51,000 $136,000 a. (pictured) b. (pictured) c. The difference in the (increase/decrease) of income from operations is due to the difference in the operating leverages. Beck Inc.'s (higher/lower) operating leverage means that its fixed costs are a (larger/smaller) percentage of contribution margin than are Bryant Inc.'s.
Asha Inc. and Samir Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Asha Inc. $2,500,000 (1,500,000) $1,000,000 (800,000) $200,000 Asha Inc. Samir Inc. Samir Inc. $4,000,000 (2,500,000) $1,500,000 (900,000) $600,000 Operating income a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. 150 75 Samir Inc. b. How much would operating income increase for each company if the sales of each increased by 30%? Dollars Percentage 30 % 30 % c. The difference in the increases of operating income is due to the difference in the operating leverages. Asha Inc.'s higher operating leverage means that its fixed costs are a smaller Inc.'s. percentage of contribution margin than are Samir
The income statement for Huerra Company for last year is provided below: Total Unit Sales $ 43,200,000 $ 432.00 Less: Variable expenses 25,920,000 259.20 Contribution margin 17,280,000 172.80 Less: Fixed expense 8,640,000 86.40 Net operating income 8,640,000 86.40 Less: Income taxes @ 30% 2,592,000 25.92 Net income $ 6,048,000 $ 60.48 The company had average operating assets of $18,000,000 during the year. Required: 1. Compute the company’s ROI for the period using the ROI formula stated in terms of margin and turnover. (Round intermediate calculation to 2 decimal places. Enter your percentage answer rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. Consider each of the following questions separately and then compute the new ROI figure. Indicate whether the ROI will increase, decrease, or remain unchanged as a result of the events described. a. By using JIT, the company is able to…

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