l T-Mobile LTE 8:55 AM 99% Done 10 of 11 Wintour Company\'s traditional income s
ID: 2410571 • Letter: L
Question
l T-Mobile LTE 8:55 AM 99% Done 10 of 11 Wintour Company's traditional income statement for 2014 appears below, on the e Sales Cost of Goods Sold Gress Proft selling & Admin. Expense0,000 Operating income 90,000 250,000 140,000 Sales Total Variable Covts Total Fixed Costs Contribution Marg 60.000 The company's Cost of Goods Sold was 60 percent variable and 40 pecent fie The company's Selling and Administrative Costs were 80 percent variable and 40 percent fised Prepare the Contribution Income Statement above, to the right a Using the Contribution Income Statement, what was the Contribution Margin Ratio? b. What is the company's breakeven revenue c How mach revenue would be required in order to make operating income of Cash Flow Problem 1. Johnson Corporation issued 100,000 shares of $1 par common stock and receved cash of $100,000 2. Johnson Corporation purchased equipment for $20,000, paying cash 3. 4. Johnson incurred 5 Depreciation is $1,000 on the equipment. 6. Johnson declared and paid a dividend of $3000 in cash to stockholders earned revenue of $30,000, one half in cash, the other halt on account expenses of $20,000, paying one-half in cash, the rest was on account Show all debits and credits to cash. Label each cash flow as operating, investing or inancing Use abbreviations O, 1, F CASH Balance Present Value Table and PV Calculation Using the rate below, create a Present Value of $1 and Present Value of Annuity table Present Value of $1 Present Value of an Annuity of $1 4.5 % 45% DONNA Donna looks at an investment that will pay Donna a lump sum of $5,000 in three years How much should Donna pay for this investment in order to earn a rate of return of 4.5 percent Prove your answer is correct 1Explanation / Answer
Wintour Company
Working:
a. Contribution margin ratio = Contribution margin/Sales = $192000/$390000 = 49.23%
b. Breakeven revenue = Total fixed costs/Contribution margin ratio = $132000 x $390000/$192000 = $268125
c. Revenue required = (Total fixed costs + Desired profit)/Contribution margin ratio = ($132000 + $100000) x $390000/$192000 = $232000 x $390000/$192000 = $471250
Note: The contribution margin ratio is rounded off to 2 decimal places.
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Contribution Income Statement Sales 390000 Total Variable Costs 198000 Contribution Margin 192000 Total Fixed Costs 132000 Operating Income 60000Related Questions
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