16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Driend the country. The stores carry many styles of shirts that are all sold at the same ton ot pales personnel are paid substantial sales commission on each shirt sold on CHAPTER 5 207 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Fixed expenses: Rent Ādvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 Р 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? 4. Suppose the company pays the store manager an incentive commission of P4 shirt separate from that of the salespersons' commission, what will be the new profit or loss if 34,000 units shirts are sold? 2. per

16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Driend the country. The stores carry many styles of shirts that are all sold at the same ton ot pales personnel are paid substantial sales commission on each shirt sold on CHAPTER 5 207 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Fixed expenses: Rent Ādvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 Р 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? 4. Suppose the company pays the store manager an incentive commission of P4 shirt separate from that of the salespersons' commission, what will be the new profit or loss if 34,000 units shirts are sold? 2. per

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.4DC

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Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most popular model of couch varies depending on how many they purchase for sale. For the first 200 couches the cost is $299 each; for the next 200 couches it drops to $250 each; and for every couch after that it costs $225. Create an excel function using the IF function to show the gross profit under the following scenarios: a. b. It sells at a price of $650 and 350 units are purchased for sale and sold It sells at a price of $625 and 300 units are purchased for sale and sold It sells at a price are $700 and 1,000 units are purchased for sale and sold C.
A factory sells an item to the wholesalers at a profit of 5%. The wholesaler sells the item to the retailer at a profit of 10%. The retailer sells the item to the public at a profit of 25%. All businesses add VAT of 15%. Required: 2.1 Complete the following table. Factory Wholesaler Retailer Cost Price R 600 ? 5 430,00 ? 3 345,60 ? ? 100,00 ? ? Profit ? ? 2.2 Complete the table below by calculating the missing amounts. Amount (R) VAT (R) 156,80 ? ? VAT ? ? ? 15,68 0 Exempt Selling Price ? ? ? TOTAL (R) ? ? 4058,40 ? ? 74,90 ?
Cherokee Incorporated is a merchandiser that provided the following information: Amount 10,000 $ 17 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Complete this question by entering your answers in the tabs below. Cherokee, Incorporated Traditional Income Statement Selling and administrative expenses: $1 $2
Q1) Pier 1 Imports operates almost 1,000 stores around the world. Assume you are dealing with a Pier 1 store in Dallas. Assume the store began with an inventory of 50 chairs that cost a total of $1,500. The store purchased and sold merchandise on account as follows: Purchase 1 60 chairs @ $35 Sale 1. @ $60 100 chairs Purchase 2 . 80 chairs @ $40 Sale 2. @ $70 Assume that Pier 1 uses the FIFO cost method. Cash payments on account totaled $5,100. Operating expenses were $2,400; the store paid two-thirds in cash and accrued the rest as Accounts Payable. Required 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. 70 chairs 2. Make journal entries to record the store's transactions.
i Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required 1 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Required 2 Amount $ 1,012,000 $ 440 Complete this question by entering your answers in the tabs below. Required 3 $ 150,000 $ 130,000 $ 65,000 $ 100,000 $ 280,000 Selling and administrative expenses: $45 $18 Prepare a traditional income statement for the quarter ended…
Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) Less cost of goods sold ($56 per unit) Gross margin Less operating costs: Commissions expense $7 per unit) $ 6.090 Salaries expense Advertising expense Shipping expense ($2 per unit. Operating income 7.800 6.000 $ A S 87.000 48,720 AREN 38,280 21.630 16.650
Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 70,000 Less cost of goods sold ($58 per unit) 40,600 Gross margin 29,400 Less operating costs: Commissions expense ($6 per unit) $ 4,200 Salaries expense 7,900 Advertising expense 5,900 Shipping expense ($1 per unit) 700 18,700 Operating income $ 10,700 Per Unit select an income statement item $enter a dollar amount $enter a dollar amount select an opening name for section one : select an income statement item $enter a dollar amount enter a dollar amount select an income statement item…
Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 6.50 5.50 $ 12.00 Annual $ 42,000 32,000 160,000 $ 234,000 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 31,350 pairs of shoes are sold? (Do not round intermediate…
Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries. Total fixed expenses $ 6.50 5.50 $12.00 Annual New break-even point in unit sales New break-even point in dollar sales $ 42,000 32,000 160,000 $ 234,000 4. The company is considering paying the Shop 48 store manager an incentive commission of 80 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round…
Ignment i Help Save & Exit Sub Saved Check my wor Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) BMX Company has one employee. FICA Soclal Security taxes are 6.2% of the first $137,700 pald to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through Gross Pay for September $ 1,500 2,100 9,500 August 31 $ 6,000 2, 000 132,900 a. b. C. Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (9. (Round your answers to 2 decimal places.) a) September Earnings Subject to Tax Tax Tax Rate Tax Amount FICA Social Security FICA-Medicare FUTA SUTA b) September Earnings Subject to Tax Tax Tax Rate Tax Amount FICA Social Security FICA…
Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied Operation $ 35,400 Administration $ 62,400 Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Operation costs Administration costs Operating profit Activity-Based Income Statement Resources Used Unused Resource Capacity…
Cherokee Incorporated is a merchandiser that provided the following information: Amount 12,000 $ 17 $2 $2 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement $ 19,000 $ 14,000 $9,000 $ 23,000 $ 86,000 Selling and administrative expenses: