Computing Markups The predicted 2009 costs forOsaka Motors are as follows: Manufacturing CostsSelling and Administrative Costs Variable $100,000Variable $300,000 Fixed 220,000 Fixed 200,000Average total assets for 2009 are predicted to be $6,000,000. (a) If management desires a 13 percentrate of return on total assets, what are the markuppercentages for total variable costs and for totalmanufacturing costs? (Round your answers to thenearest whole percent.) Markup on variable costsAnswer 1 300% Markup on manufacturing costsAnswer 2 400 % (b) If the company desires a 7percent rate of return on total assets, what is themarkup percentage on total manufacturing costsfor (1) unassigned costs and (2) desired profit?Note: The markup percentage on totalmanufacturing costs is 287%. Compute themarkup percentage for each component. Note:Round your answers to the nearest whole percent.Markup to cover unassigned costs Answer 3 156 %Markup to cover desired profit Answer 4 219%

b).Calculation of the markup percentage on total manufacturing costs to cover unassigned costs and…

Answered: Computing Markups The predicted 2009…

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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Compute the Revenue Effect- Growth Component, indicate if favorable/(unfavorable). *The activity driver for conversion cost is the direct labor hours. PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 2020 2021 Sales P 45, 000 P 38, 000 Production Expenses Direct materials 9, 504 8, 976 12,000 Direct labor 10,000 Factory overhead Gross Profit 5, 000 P 14, 520 5, 000 P 18, 000 Operating Expenses 13,000 13, 000 Operating income P5, 000 P1, 520 During the year 2020, the corporation was able to sell 10, 000 units which is 25% above the sales in 2021. The same capacity was used for factory overhead and operating expenses for years 2020 and 2021. Other data are as follows: 2020 2021 Raw materials used ( kg) 1, 200 720 Direct labor hours 1, 000 816
Using the following data, estimate the new Return on Investment if there is a 10% decrease in variable and fixed costs - with average operating assets as the base. Sales $2,000,000 Variable costs 1.100.000 Contribution margin 900.000 Controllable fıxed costs 300.000 IControllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
The following selected data pertain to Badang Company's Jaja Division for 2021: Sales Variable costs Traceable fixed costs Average invested capital Imputed interest rate P1,000,000 600,000 100,000 200,000 15% How much is the return on investment? 200% 75% 135% 150%
Using the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Using the following data, estimate the new Return on Investment if there is a 8% increase in sales - with average operating assets as the base. Sales Contribution margin Controllable fixed costs $3,646,059 45% 266,167 Average operating $5,897,345 assets
Additional data: Selling and Administrative expenses are 60% fixed and 40% variable A. What is the net income for 2020 under the variable costing method? B. What is the net income for 2020 under the absorption costing method? C. What is the net income for 2021 under the absorption costing method?
Using the following data, estimate the new Return on Investment if there is a 10% decrease in variable and fixed costs- with average operating assets as the base. Sales Contribution margin $3,662,879 37% Controllable fixed costs 333,341 Average operating assets $5,266,981| Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable 1,100,000 costs Contribution 900,000 margin 45% Controllable 300,000 fixed costs Controllable $600,000 margin Average operating $5,000,000 assets
Nombre Company management predicts $390,000 of variable costs, $430,000 of fixed costs, and a pretax income of $155,000 in the next period. Management also predicts that the contribution margin per unit will be $9. Use this information to compute the (1) total expected dollar sales for next period and (2) number of units expected to be sold next period.
Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable costs 1,100,000 Contribution margin 45% 900.000 Controllable fıxed costs 300.000 Controllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
Suppose that a company expects the fo llowing financial resuJts from a project during its first year ope ration:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and so ld: 1,000 units(a) Compute the contribution ma rgin pe rcentage.(b) Compute the brcakcven point in units sold.

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