管理会计第六章

第六章

167. The following is Arkadia Corporation's contribution format income statement for last month:

The company has no beginning or ending inventories and produced and sold 20,000 units during

the month.

Required:

a. What is the company's contribution margin ratio?

b. What is the company's break-even in units?

c. If sales increase by 100 units, by how much should net operating income increase?

d. How many units would the company have to sell to attain target profits of $$125,000?

e. What is the company's margin of safety in dollars?

f. What is the company's degree of operating leverage?

a. Contribution margin ratio:

CM ratio = Contribution margin

Sales = $$400,000

$$1,200,000 = 0.333

b. Break-even units:

Selling price ($$1,200,000

20,000 units) = $$60 per unit

V

ariable expenses ($$800,000

20,000 units) = $$40 per unit

Sales = V

ariable expenses + Fixed expenses + Profit

$$60Q = $$40Q + $$300,000 + $$0

$$20Q = $$300,000

Q = $$300,000

$$20 per unit = 15,000 units

c. Increase in net operating income from additional sales of 100 units:

d. Sales to attain target profit:

Sales = V

ariable expenses + Fixed expenses + Profit

$$60Q = $$40Q + $$300,000 + $$125,000

$$20Q = $$425,000

Q = $$425,000

$$20 per unit = 21,250 units

e. Margin of safety in dollars:

Break-even sales = $$60 per unit

?

15,000 units = $$900,000

Margin of safety in dollars = Sales - Break-even sales

= $$1,200,000 - $$900,000 = $$300,000

f. Degree of operating leverage = Contribution margin

Net operating income

= $$400,000

$$100,000 = 4.0

168. The Garry Corporation's most recent contribution format income statement is shown below:

Required:

Prepare

a

new

contribution

format

income

statement

under

each

of

the

following

conditions

(consider each case independently):

a. The sales volume increases by 10% and the price decreases by $$0.50 per unit.

b. The

selling

price

decreases

$$1.00

per

unit,

fixed

expenses

increase

by

$$15,000,

and

the sales

volume decreases by 5%.

c. The selling price increases by 25%, variable expense increases by $$0.75 per unit, and the sales

volume decreases by 15%.

d. The selling price increases by $$1.50 per unit, variable cost increases by $$1.00 per unit, fixed

expenses decrease by $$15,000, and sales volume decreases by 12%.

a.

b.

c.

d.

169. McConkey

Corporation

produces

and

sells

a

single

product.

The

company's

contribution

format income statement for July appears below:

Required:

Redo the company's contribution format income statement assuming that the company sells 5,800

units.

below:

173. Spencer

Company's

most

recent

monthly

contribution

format

income

statement

is

given

inventories.

The

company

sells

its

only

product

for

$$10

per

unit.

There

were

no

beginning

or

ending

Required:

a. What are total sales in dollars at the break-even point?

b. What are total variable expenses at the break-even point?

c. What is the company's contribution margin ratio?

d. If unit sales were increased by 10% and fixed expenses were reduced by $$2,000, what would be

the company's expected net operating income? (Prepare a new income statement.)

a.

The contribution

margin

ratio

is

$$15,000

$$60,000

=

25%. Therefore,

the

break-even

in

sales dollars is $$18,000

25% = $$72,000.

b. The variable cost ratio is $$45,000

$$60,000 = 75%. Therefore, the variable expenses at the

break-even point are $$72,000

?

75% = $$54,000.

c. 25% See part (a) above.

d.

174. Sarratt

Corporation's

contribution

margin

ratio

is

62%

and

its

fixed

monthly

expenses

are

$$91,000. Assume that the company's sales for May are expected to be $$193,000.

Required:

Estimate the company's net operating income for May. Assume that the fixed monthly expenses do

not change. Show your work!

176. Huitron

Inc.

expects

its

sales

in

September

to

be

$$143,000.

The

company's

contribution

margin ratio is 65% and its fixed monthly expenses are $$62,000.

Required:

Estimate

the

company's

net

operating

income

for

September.

Assume

that

the

fixed

monthly

expenses do not change. Show your work!

typical month are summarized in contribution format as follows:

177.

Belli-Pitt,

Inc,

produces

a single

product.

The results

of

the

company's

operations

for

a

The company produced and sold 120,000 kilograms of product during the month. There were no

beginning or ending inventories.

Required:

a. Given the present situation, compute

1. The break-even sales in kilograms.

2. The break-even sales in dollars.

3. The sales in kilograms that would be required to produce net operating income of $$90,000.

4. The margin of safety in dollars.

b. An important part of processing is performed by a machine that is currently being leased for

$$20,000

per

month.

Belli-Pitt

has

been

offered

an

arrangement

whereby

it

would

pay

$$0.10

royalty per kilogram processed by the machine rather than the monthly lease.

1. Should the company choose the lease or the royalty plan?

2. Under the royalty plan compute break-even point in kilograms.

3. Under the royalty plan compute break-even point in dollars.

4. Under the royalty plan determine the sales in kilograms that would be required to produce net

operating income of $$90,000.

a.

1. Sales = V

ariable expenses + Fixed expenses + Target profit

$$4.50Q = $$3.00Q + $$120,000 + $$0

$$1.50Q = $$120,000

Q = $$120,000

$$1.50 per unit = 80,000 units

2. 80,000 units

?

$$4.50 per unit = $$360,000

3. Sales = V

ariable expenses + Fixed expenses + Target profit

$$4.50Q = $$3.00Q + $$120,000 + $$90,000

$$1.50Q = $$210,000

Q = $$210,000

$$1.50 per unit = 140,000 units

4. Margin of safety = Sales - Sales at breakeven = $$540,000 - $$360,000

= $$180,000

b. 1.

Since net operating income increases by $$8,000 the royalty is a good plan, provided sales remains

at the same level.

2. Sales = V

ariable expenses + Fixed expenses + Target profit

$$4.50Q = $$3.10Q + $$100,000 + $$0

$$1.40Q = $$100,000

Q = $$100,000

$$1.40 per unit = 71,429 units

3. 71,429 units

?

$$4.50 unit = $$321,429

4. Sales = V

ariable expenses + Fixed expenses + Target profit

$$4.50Q = $$3.10Q + $$100,000 + $$90,000

$$1.40Q = $$190,000

Q = $$190,000

$$1.40 per unit = 135,714 units

178. Shelhorse

Corporation

produces

and

sells

a

single

product.

Data

concerning

that

product

appear below: