(d)Pharoah's managers have determined that variable costs per unit will increase by 20% beginning next month. To offset thisincrease in costs, they are considering a 12% increase in the sales price Market research indicates that the price increase willresult in a 3% decrease in the number of learning systems Pharoah sells. What will be Pharoah's expected operating income if theprice increase is implemented? (Round per unit calculations to 2 decimal places eg. 52.75 and final answer to 0 decimal places, e.g.5,275)Operating income$ Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company's income statement from last month is as follows:Sales revenueVariable expensesContribution marginFixed expensesOperating incomeTotal$756,000264.600491,400282,750$208,650Per Unit$5418.90$35.10

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Answered: (d) Pharoah's managers have determined…

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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(Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales returns and allowances) Treno Industries sells to wholesalers. Customers must paywithin 15 days or at the point of sale using a credit card. Treno’s cost of goods sold is 40% ofsales. The company had the following selected transactions during March:March 3 Sold $15,000 of merchandise to Whittier Company on account.Sold $2,000 of merchandise to Yeller Corp., who paid by credit card. The creditcard company charges Treno a fee of 2% on credit card sales.March 4March 15 Whittier Company paid the balance of what it owed for the purchase on March 3.March 19 Sold $22,000 of merchandise to Zucca Co. on account.March 21 Zucca reported that some of the merchandise received was scratched and returned$1,000 worth of merchandise to Treno.March 23 Sold $32,000 of merchandise to Nichols Co. on account.March 25 Zucca paid the balance of what it owed for the purchase on March 19.March 31 Treno made the adjusting…
Problem 1. Statement of Comprehensive Income The Sunshine Moments Bookstore sells the books used in classes such as workbooks and coloring books. All the enrolled students (150 students) purchased the three prescribed books at P500 each. The books cost P200 each. Also, sales of various school supplies amounted to P500,000. Costs of these school supplies amounted to P250,000. The monthly salary of the bookstore manager is P20,000. The store is manned by one clerk with monthly salary of P6,000. Utilities expense for the year totals P80,000. Of this, 25* is for the small office at the back of the bookstore. Depreciation for store fixtures amounted to P50,000. Prepare the multi-step income statement for the year ended December 31 for Sunshine Moments Bookstore,
(Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales returns and allowances) Dearborn Industries sells to wholesalers. Customers mustpay within 15 days or at the point of sale using a credit card. Dearborn’s cost of goods sold is35% of sales. The company had the following selected transactions during March:March 3 Sold $25,000 of merchandise to Greenleaf Company on account.Sold $4,000 of merchandise to Yardley Corp., who paid by credit card. The creditcard company charges Dearborn a fee of 2% on credit card sales.March 4March 15 Greenleaf Company paid the balance of what it owed for the purchase on March 3.March 19 Sold $12,000 of merchandise to Zurich Co. on account.March 21 Zurich reported that some of the merchandise received was scratched and returned$500 worth of merchandise to Dearborn.March 23 Sold $38,000 of merchandise to Niles Co. on account.March 25 Zurich paid the balance of what it owed for the purchase on March 19.March 31 Dearborn made…
19. income statements are not as detailed as multi-step income statements and combine all revenues and all expenses into general categories. There is no differentiation between operational and non-operational activities. 20. The formula for gross profit is What I Can Do Solve the following: 1. On June 1, of the current year, Columbia Candy Supplies sells 125 candy buckets to a local school at a sales price of #510.00 per bucket. The cost is P260.00 per bucket. The terms of the sale are 2/10, n/60, with an invoice date of June 1. Create the journal entries for Columbia Candy Supplies to recognize the following transactions. a. The initial sale (using periodic inventory system) b. The collection of payment made by the local school on July 12. 2. Cosmos Enterprises purchases 32 cellular telephones on credit from a manufacturer on November 3 at a price of P8,000 per phone. Terms of the purchase are 3/5, n/30 with an invoice date of November 3. Cosmos Enterprises pays in full for the phones…
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Your campus computer store reported Sales Revenue of $175,000. The company's gross profit percentage was 65 percent. What amount of Cost of Goods Sold did the company report? Cost of Goods Sold
PROGRAMS SELF DEVELOPMENT E-LIBRARY ZAIN HANDBOOKS Using the below table of two Soda Companies, please answer the following question: Company A 5,000,000.00 Company B 10,000,000.00 # of annual sales Price per product 1.2 1.1 Cost of production per product 0.88 0.75 Advertising cost 100,000.00 150,000.00 300,000.00 200.000.00 250,000.00 500,000.00 Electricity cost 500,000.00 800,000.00 500,000.00 600,000.00 Depreciation cost Staff cost Admin cost TIME LEFT O:43:15 What is the Gross Profit of each company 8:02 AM 2/11/2021
Answer the following 2 questions based on the information in the spreadsheet you created below: Year 1 Year 2 Year 3 Year 4 $ % $ % $ % $ % Net Sales $ 500,000.00 100.00% $ 540,000.00 100.00% $ 577,800.00 100.00% $ 612,468.00 100.00% Cost of goods 265,000.00 53.00% $ 283,500.00 52.50% $ 300,456.00 52.00% $ 321,545.70 52.50% Gross Margin 235,000.00 47.00% $ 256,500.00 47.50% $ 277,344.00 48.00% $ 290,922.30 47.50% Operating expenses 210,000.00 42.00% $ 226,800.00 42.00% $ 245,565.00 42.50% $ 257,236.56 42.00% Operating proft 25,000.00 5.00% $ 29,700.00 5.50% $ 31,779.00 5.50% $ 33,685.74 5.50% 1. What can Mr. Ptolemy do to achieve the gross margin percentage goal set for the third and fourth years? Hint: What factors and elements of a P & L statement affect gross margin %?(List at least 2 things) 2. What efforts should Mr. Ptolemy make in the third and…
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The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories. INCOME STATEMENT ACCOUNT NAME DEBIT CREDIT Income Summary 32,000.00 31,000.00 Sales 324,000.00 Sales Returns and Allowances 13,310.00 Sales Discounts 7,700.00 Purchases 126,360.00 Purchases Returns and Allowances 1,200.00 Purchases Discounts 1,300.00 Freight In 7,500.00 Selling Expenses 61,560.00 General Expenses 50,884.00 299,314.00 357,500.00 Net Income 58,186.00 357,500.00 357,500.00 From the information given, prepare an income statement for the company. Ralley Company Income Statement For Year Ended August 31, 20-- Revenue from Sales: $fill in the blank 2 $fill in the blank 4 fill in the blank 6 fill in the blank 7 Net Sales $fill in…
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Can you please show all of your work and show where you are getting the numbers from? Thank you. Barbara's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Barbara's purchases of Xpert snowboards during September is shown below. During the same month, 130 Xpert snowboards were sold. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 30 $90 $2,700 Sept. 12 Purchases 50 96 4,800 Sept. 19 Purchases 15 100 1,500 Sept. 26 Purchases 50 104 5,200 Totals 145 $14,200 Additional data regarding Barbara's sales of Xpert snowboards are provided below. Assume that Barbara's uses a perpetual inventory system. Date Units Unit Price Total Revenue Sept. 5 Sale 20 $185 $3,700 Sept. 16 Sale 50 185 9,250 Sept. 29 Sale 60 208 12,480 Totals 130 $25,430 Calculate moving average cost at Sept 1, 5, 12, 16, 19, 26 & 29. (Round answers 2 decimal places, e.g. 1.25.) September 1 %24 90 September 5 %24 September 12 %24 93.75 September 16 %24 September 19…

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