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##### acct 212 homework 5 chapter 22

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Question;acct 212 homework 5 chapter 22acct 212 homework 5 chater 22.;award:3 out of;3.00 points;Exercise 22-5 Predicting sales and variable costs using contribution;margin L.O. C2;Orlando;Company management predicts that it will incur fixed costs of $256,000 and;earn pretax income of $443,600 in the next period. Its expected contribution;margin ratio is 66%.;1.;Compute;the amount of total dollar sales. (Omit;the "$" sign in your response.);2.;Compute;the amount of total variable costs. (Omit the;$" sign in your response.);2.;award:3 out of;3.00 points;Exercise 22-7 Cost behavior estimation?scatter diagram and high-low L.O.;P1;Felix;Co. reports the following information about its sales and cost of;sales.;Period;Units;Sold;Cost of;Sales;Period;Units;Sold;Cost of;Sales;1.;0;$;2,690;6.;2,190;5,690;2.;590;3,290;7.;2,590;6,290;3.;990;3,890;8.;2,990;6,890;4.;1,390;4,490;9.;3,390;7,490;5.;1,790;5,090;10.;3,790;8,754;Use the;high-low method to calculate the variable component of the cost of sales. (Round your answer to 2 decimal places. Omit the;$" sign in your response.);Use the;high-low method to calculate the fixed component of the cost of sales. (Omit the "$" sign in your response.);eBook;LinkView Hint #1;3.;award:3 out of;3.00 points;Exercise 22-9 Contribution margin L.O.A2;A pants;maker is designing a new line of pants called the Redbird. The pants will;sell for $330 per pair and cost $260.70 per pair in variable costs to;make.;(1);Compute;the contribution margin per pair. (Round your;answer to 2 decimal places. Omit the "$" sign in your response.);(2);Compute;the contribution margin ratio. (Round your;intermediate calculation to 2 decimal places. Omit the "%" sign in;your response.);4.;award:3 out of;3.00 points;Exercise 22-12 Income reporting and break-even analysis L.O. C2;Apollo;Company manufactures a single product that sells for $310 per unit and whose;total variable costs are $248 per unit. The company?s annual fixed costs are;$992,000.;(1);Prepare;a contribution margin income statement for Apollo Company at the break-even;point. (Leave no cells blank - be certain to;enter "0" wherever required. Input all amounts as positive values.;Omit the "$" sign in your response.);(2);Assume;if the company?s fixed costs increase by $145,000, what amount of sales (in;dollars) is needed to break even? (Omit the;$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 22-12 Income reporting and break-even analysis L.O. C2;Learning Objective: 22-C2 Describe several applications of;cost-volume- profit analysis.;5.;award:3 out of;3.00 points;Exercise 22-13 Computing sales to achieve target income L.O. C2;Apollo;Company manufactures a single product that sells for $280 per unit and whose;total variable costs are $224 per unit. The company targets an annual;after-tax income of $980,000. The company is subject to a 30% income tax;rate. Assume that fixed costs remain at $879,200.;(1);Compute;the unit sales to earn the target after-tax net income.;(2);Compute;the dollar sales to earn the target after-tax net income. (Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Hard;Exercise 22-13 Computing sales to achieve target income L.O. C2;Learning Objective: 22-C2 Describe several applications of;cost-volume- profit analysis.;6.;award:3 out of;3.00 points;Exercise 22-14 Forecasted income statement L.O. C2;Apollo;Company manufactures a single product that sells for $113 per unit and whose;total variable costs are $102 per unit. The company?s annual fixed costs are;$626,000. The sales manager predicts that annual sales of the company?s;product will soon reach 39,600 units and its price will increase to $196 per;unit. According to the production manager, the variable costs are expected to;increase to $136 per unit but fixed costs will remain $626,000. The income;tax rate is 40%.;What;amounts of pretax and after-tax income can the company expect to;earn from these predicted changes? (Omit;the "$" sign in your response.);eBook LinkView Hint #1;7.;award:3 out of;3.00 points;Exercise 22-15 Predicting unit and dollar sales L.O. C2;Greenspan;Company management predicts $520,000 of variable costs, $820,000 of fixed;costs, and a pretax income of $172,000 in the next period. Management also;predicts that the contribution margin per unit will be $62.;(1);Compute;the total expected dollar sales for next period. (Omit the "$" sign in your response.);(2);Compute;the number of units expected to be sold next period.;8.;award:3.20 out of;4.00 points;Exercise 22-17 CVP analysis using composite units L.O. P4;Home;Builders sells windows and doors in the ratio of 8:2 (windows:doors). The;selling price of each window is $106 and of each door is $256. The variable;cost of a window is $65.50 and of a door is $178.00. Fixed costs are;$624,000.;(1);Determine;the selling price per composite unit. (Omit;the "$" sign in your response.);(2);Determine;the variable costs per composite unit (Round;your answer to 2 decimal places. Omit the "$" sign in your;response.);(3);Determine;the break-even point in composite units. (Round;your intermediate calculation to 2 decimal places.);(4);Determine;the number of units of each product that will be sold at the break-even;point. (Round your intermediate calculation;to 2 decimal places.);9.;award:4 out of;4.00 points;Exercise 22-18 CVP analysis using weighted-average contribution margin;L.O. P4;Home;Builders sells windows and doors in the ratio of 8:2 (windows:doors). The;selling price of each window is $114 and of each door is $264. The variable;cost of a window is $69.50 and of a door is $182.00. Fixed costs are;$499,200.;(1);Determine;the weighted-average contribution margin per unit. (Round your answer to 2 decimal places. Omit the;$" sign in your response.);(2);Determine;the break-even point in units.;(3);Determine;the number of units of each product that will be sold at the break-even;point. (Round your intermediate calculation;to 2 decimal places.);10.;award:4 out of;4.00 points;Exercise 22-19 CVP analysis using composite units L.O. P4;Hubert;Tax Service offers tax and consulting services to individuals and small;businesses. Data for fees and costs of three types of tax returns follow.;Hubert provides services in the ratio of 4:3:3 (easy, moderate, business).;Fixed costs total $30,000 for the tax season.;Type of Return;Fee Charged;Variable Cost;per Return;Easy;(form 1040EZ);$;70;$;40;Moderate;(form 1040);145;85;Business;295;110;(1);Determine;the selling price per composite unit. (Omit;the "$" sign in your response.);(2);Determine;the variable costs per composite unit. (Omit;the "$" sign in your response.);(3);Determine;the breakeven point in composite units. (Round;your answer to 2 decimal places.);(4);Determine;the number of units of each product that will be sold at the break-even;point. (Round your intermediate calculations;to 2 decimal places and final answers to nearest units.);11.;award:4 out of;4.00 points;Exercise 22-20 CVP analysis using weighted-average contribution margin;L.O. P4;Hubert;Tax Service offers tax and consulting services to individuals and small;businesses. Data for fees and costs of three types of tax returns follow.;Hubert provides services in the ratio of 4:4:2 (easy, moderate, business).;Fixed costs total $29,000 for the tax season.;Type of Return;Fee Charged;Variable Cost;per Return;Easy;(form 1040EZ);$;68;$;39;Moderate;(form 1040);143;84;Business;293;109;(1);Determine;the weighted-average contribution margin per unit. (Round your answer to 2 decimal places. Omit the;$" sign in your response.);(2);Determine;the break-even point in units. (Round your;answer to 1 decimal place.);(3);Determine;the number of units of each product that will be sold at the break-even;point. (Round your intermediate answers to 2;decimal places and final answers to nearest units.);12.;award:3 out of;3.00 points;Exercise 22-21 Operating leverage computed and applied L.O. A2;Company;A is a manufacturer with current sales of $3,200,000 and a 50% contribution;margin. Its fixed costs equal $1,140,000. Company B is a consulting firm with;current service revenues of $3,200,000 and a 25% contribution margin. Its;fixed costs equal $340,000.;1.;Compute;the degree of operating leverage (DOL) for each company. (Round your answers to 1 decimal place.);2.;Identify;which company benefits more from a 20% increase in sales.;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 22-21 Operating leverage computed and applied L.O. A2;Learning Objective: 22-A2 Analyze changes in sales using the degree of;operating leverage.

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