Buy Best is an electronic store having three operatingdepartments. An income statement for the most recentmonth of operations appears below.СоmputersTotalTVsRadiosSales$55,000$44,000S11,000$110,000VariableCosts33.00017,600Contribution Margin5,500 53,900Fixed Costs5,50056,10022,00026,400Direct, avoidable(5,000)(4,000)(4,000)Common, allocated basedon sales dollars(13,000)(10,000)(8.000)(2,000)_(20,000)Profit (Loss)$ 7,000$14,400(S500)$ 20,900A) If Buy Best were to drop the toy line and make no otherchanges to its operations, What would the income for themonth be?B) The space currently being used by the radio departmentcould be converted to a phone department. If this weredone, sales of the phones are expected to be $22,000with variable costs of $8,800 and avoidable direct fixedcosts of $3,000. Assuming no effects on the computersand TV departments, what would the income for themonth be?

Buy Best is an electronic store having 3 operating departments. 1. TV's 2. Radio's 3. Computers…

Buy Best is an electronic store having three operating departments. An income statement for the most recent month of operations appears below. Сomputers Total TV's Radios Sales $55,000 $44,000 $11,000 S110,000 Variable Costs 33.000 56,100 22,000 17,600 Contribution Margin 5,500 Fixed Costs Direct, avoidable 5,500 26,400 53,900 (5,000) (4,000) (4,000) Common, allocated based (13,000) on sales dollars (10,000) (8.000) (2,000) Profit (Loss) $ 20,900 _(20,000) $ 7,000 $14.400 (S 500) A) If Buy Best were to drop the toy line and make no other changes to its operations, What would the income for the month be? B) The space currently being used by the radio department could be converted to a phone department. If this were done, sales of the phones are expected to be $22,000 with variable costs of $8,800 and avoidable direct fixed costs of $3,000. Assuming no effects on the computers and TV departments, what would the income for the month be?

Buy Best is an electronic store having three operating departments. An income statement for the most recent month of operations appears below. Сomputers Total TV's Radios Sales $55,000 $44,000 $11,000 S110,000 Variable Costs 33.000 56,100 22,000 17,600 Contribution Margin 5,500 Fixed Costs Direct, avoidable 5,500 26,400 53,900 (5,000) (4,000) (4,000) Common, allocated based (13,000) on sales dollars (10,000) (8.000) (2,000) Profit (Loss) $ 20,900 _(20,000) $ 7,000 $14.400 (S 500) A) If Buy Best were to drop the toy line and make no other changes to its operations, What would the income for the month be? B) The space currently being used by the radio department could be converted to a phone department. If this were done, sales of the phones are expected to be $22,000 with variable costs of $8,800 and avoidable direct fixed costs of $3,000. Assuming no effects on the computers and TV departments, what would the income for the month be?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

See similar textbooks

Similar questions

XYZ company provided the following information: Sales Accounts payable Selling expenses Administrative expenses Ofher revenues Cost of goods scid Cash Other expenss $30,000 3,000 4,000 5,500 10,000 13,500 12,000 7,000 Required: Calcuiate the folowing (SHOW YOUR CALCULATIONS) Grons proft 1Net incomel ioss
3. Set up a complete skeletal statement for each of the following problems.*In chart form, show all elements of the P&L including %’sNet sales $1,230,600Cost of merchandise sold $609,147Expenses $553,770 Please correct answer with explanation. I will really upvote.
The following information relates to CEE Company: (Refer to image). Assume that the company uses the average cost approach. What is the cost ratio? Express your answer in percentage and round up to two decimal points. * Retail Cost 500,000.00 Inventory, 12/31/2021 725,000.00 Purchases 1,285,000.00 2,220,000.00 Purchase returns 20,000.00 35,000.00 Purchase discounts 30,000.00 Sales (after employee discounts) 2,450,000.00 Sales returns 125,000.00 Sales allowances 70,000.00 Mark-ups Mark-up cancellations 160,000.00 70,000.00 Mark-down 65,000.00 Mark-down cancellations 32,000.00 Freight in Employee discounts Normal loss from breakage 65,000.00 15,000.00 10,000.00
ABC Co. has the following information:Inventory, beg. 80,000Inventory, end. 128,000Purchases 320,000Freight-out 16,000Purchase returns 18,000Purchase discounts 11,200How much is ABC Co.’s cost of sales?
PROBLEM 2Determine the missing elements of the Income Statement. Replace the letters with your answers.The partial income statements of five different companies are as follows: 12345 Net SalesAD250,000290,000400,000 Merchandise Inventory, 1/1/2020B50,00070,000J120,000 Net Cost of Purchases80,000EG160,000390,000 Goods Available for Sale110,000160,000HKM Merchandise Inventory, 1/1/202040,000F30,00070,000N Cost of Goods SoldC140,000230,000L380,000 Gross Profit50,00040,000I160,000O
Type the formulas to calculate the following: In cell B9, calculate the grand total amount owing for all customers. In ce E KBC DFGHJ1 Cost Retail 2 Mussels R12,40 R21, 70 3 Crabs R25, 60 R44,804 Markup % 75,0% 5 Discount % 8,5% EFT 6 VAT % 15 89 Total Sales 10 Cost of Sales 11 Profit or Loss No of 12 Customers No of Crab 13 Customers Sales of Mussel 14 Customers 15 Can
A ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser=0&launchUrl=https%253A%252F%252Fblackboard.american.edU Saved CH 9 Concept Overview Videos Required Information Cost of Goods Sold Accounts Payable Turnover Average Accounts Payable Company Is paylng suppllers In a timely manner 0.38 High accounts payable ratio polnts eBook Print Knowledge Check 01 Roberts Company reported the following information: References Accounts Payable: Beginning of year End of year Net sales 75,000 125,000 1,600,000 800,000 Cost of goods sold What is the company's accounts payable turnover ratio? (Round your answer to 1 decimal place.) Accounts payable turnover ratio %24
The following information is for Lawrence Company, who uses the LIFO method: Item Cost NRV MinusNormal Profit Net RealizableValue ReplacementCost a $3.40 $2.79 $4.14 $4.65 b 36.00 28.80 32.40 27.60 c 2.40 1.32 1.56 1.94 d 6.00 5.55 6.15 6.30 e 24.00 20.40 22.80 21.00 f 13.35 10.55 12.30 12.90 1. Determine the lower of cost or market for each inventory item. Item Lower ofCost or Market Value a $ b $ c $ d $ e $ f $ 2. Now assume instead that the company uses FIFO and the inventory is valued using the LCNRV rule, determine the value of each inventory item. Item Lower ofCost or Net Realizable Value a $ b $ c $ d $ e $ f $
Set up a complete skeletal statement for each of the following problems. *In chart form, show all elements of the P&L including %'s Net sales $1,230,600 Cost of merchandise sold $609,147 Expenses $553,770
Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 53,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Beginning Ending ? Next year, Bob's Bistro expects to purchase $126,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory $5,000 $4,900 $73,000 27,000 230,000 Work-in-Process Inventory $13,700 $15,700 Next year, Bob's Bistro expects to produce 53,000 units and sell 52,300 units at a price of $13.00 each. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000. Total selling expense is projected at $22,000, and total administrative expense is projected at $117,500. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For…
The details of a Retail Merchandise business are: Sales revenues are RO 80,000 cost of goods sold is RO 30,000 and Total Selling expenses are RO 40,000, Interest revenue RO 500 and Interest expense RO 300. What will be the Net Profit assuming that the business uses Simple step income statement? a. 10,200 b. 9,900 c. 10,000 d. 10,100
Financial information is presented below: Operating Expenses $56000 Sales Revenue Cost of Goods Sold Gross profit would be $48000. $238000. $182000. $104000. 238000 134000