Mechem Corporation produces and sells a single product. In April, the company sold 1,900 units. Its total sales were $152,000, its total variable expenses were $79,800, and its total fixed expenses were $56,700.

Required:

a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.)
b. Redo the company's contribution format income statement assuming that the company sells 1,800 units.

Answers

Answer 1

Answer:

1. $15,500

2. $11,700

Explanation:

Given the following information,

the company sold 1,900 units

Total sales were $152,000

Total variable expenses were $79,800

Total fixed expenses were $56,700

The structure for Contribution income margin format is seen below;

Income statement:

Sales

- Total Variable cost

= Contribution margin

- Fixed costs

= Net Operating income

1. Income statement

Sales = $152,000

Less Total variable cost = ($79,800)

Contribution margin = $72,200

Less Total Fixed costs = ($56,700)

Net operating income = $15,500

2. Here, we need to calculate the unitary selling price and the unitary variable cost

Selling price = $152,000 ÷ 1,900 units = $80

Unitary Variable cost = $79,800 ÷ 1,900 units = $42

Therefore,

Sales = 1,800 units × $80

$144,000

Less total variable cost = 1,800 units × $42

$75,600

Contribution margin

$68,400

Less total fixed costs

$56,700

Net operating income

$11,700


Related Questions

Merchandise inventory includes:__________

a. costs to purchase
b. costs to sell
c. shipping costs
d. costs to prepare for sale
e. cost of goods sold

Answers

Answer:

a. costs to purchase

c. shipping costs

d. costs to prepare for sale

Explanation:

Merchandise inventory is a commodity offered for sale. It is the cost of goods that is readily available at hand which is ready for sale From the options; the Merchandise inventory includes: costs to purchase, shipping costs and costs to prepare for sale.

The remaining options are addressed in the income statement.

Hardigree Corporation uses a job-order costing system. Beginning balance in Work in Process $ 36,000 (1) Raw materials purchased on account $207,000 (2) Direct materials requisitioned for use in production $161,000 (3) Indirect materials requisitioned for use in production $ 42,000 (4) Direct labor wages incurred $ 87,000 (5) Indirect labor wages incurred $101,000 (6) Depreciation recorded on factory equipment $ 42,000 (7) Additional manufacturing overhead costs incurred $ 57,000 (8) Manufacturing overhead costs applied to jobs $219,000 (9) Cost of jobs completed and transferred from Work in Process to Finished Goods $403,000 The total amount of manufacturing overhead actually incurred was: Multiple Choice

Answers

Answer:

$242,000

Explanation:

Calculation of the total amount of manufacturing overhead actually incurred:

Particulars                                                    Amount

Indirect Materials                                         $42,000

Indirect labor                                                $101,000

Depreciation On factory equipment           $42,000

Additional Manufacturing Overhead          $57,000

Total Manufacturing Overhead incurred $242,000

Will Mark as Brainliest!!! +40 extra points Spending money on medical expenses is part of this expenditures approach for calculating the GDP.


a. consumer spending

b. gross exports

c. sum of all the country's businesses spending on capital

d. sum of government spending

e. gross imports

Answers

Answer A

Explanation:

Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, and 18 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 8 percent, and also has 18 years to maturity. Both bonds have a par value of $1,000.

Required:
a. What is the price of each bond today?
b. If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 9 years? In 13 years? In 17 years? In 18 years?

Answers

Answer:

The function/formula for PV is PV(Rate,Nper,PMT,FV) where Rate = YTM, Nper = Period, PMT = Coupon Payment and FV = Face Value of Bonds.

a. Miller Bond  

Here, Rate = 6%/2 = 3%, Nper = 18*2 = 36, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,36,40,1000)

Bond Price = $1,218.32

 

Modigliani Bond

Here, Rate = 8%/2 = 4%, Nper = 18*2 = 36, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]

Bond Price = PV(4%,36,30,1000)

Bond Price = $810.92

b.   1 Year from Now

Miller Bond

Here, Rate = 6%/2 = 3%, Nper = 18*2 = 34, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,34,40,1000)

Bond Price = $1,211.32

Modigliani Bond  

Here, Rate = 8%/2 = 4%, Nper = 17*2 = 34, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]

Bond Price = PV(4%,34,30,1000)

Bond Price = $815.89

9 Years from Now  

Miller Bond

Here, Rate = 6%/2 = 3%, Nper = 9*2 = 18, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,18,40,1000)

Bond Price = $1,137.54

 

Modigliani Bond

Here, Rate = 8%/2 = 4%, Nper = 9*2 = 18, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]

Bond Price = PV(4%,18,30,1000)

Bond Price = $873.41  

13 Years from Now

Miller Bond

Here, Rate = 6%/2 = 3%, Nper = 5*2 = 10, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,10,40,1000)

Bond Price = $1,085.30

Modigliani Bond

Here, Rate = 8%/2 = 4%, Nper = 5*2 = 10, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]

Bond Price = PV(4%,10,30,1000)

Bond Price = $918.89  

17 Years from Now  

Miller Bond

Here, Rate = 6%/2 = 3%, Nper = 1*2 = 2, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,2,40,1000)

Bond Price = $1,019.13  

Modigliani Bond  

Here, Rate = 8%/2 = 4%, Nper = 1*2 = 2, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]

Bond Price = PV(4%,2,30,1000)

Bond Price = $981.14

18 Years  

Miller Bond

Here, Rate = 6%/2 = 3%, Nper = 1*2 = 2, PMT = 1,000*8%*1/2 = $40 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(3%,0,40,1000)

Bond Price = $1,000

Modigliani Bond

Here, Rate = 8%/2 = 4%, Nper = 0, PMT = 1,000*6%*1/2 = 30 and FV = $1,000 [we use 2 since the bond is semi-annual]  

Bond Price = PV(4%,0,30,1000)

Bond Price = $1,000

Other Questions
A (1,4) B (-2,3) C (-4,5) 3 units right 4 units down 2x^4=9x^2 solve by factoring 3 Triangles ABC and DEF shown in the diagramare similar.In triangle ABC, mZA = 64.In triangle DEF, m_F= 73.What is the measure of ZG?Answer: mZG= Which religion believes karma affects theirstatus in the caste system? i need help (64-4) / 2-7^2 Plllllwaaaaasseeee hellollllSuppose you are given two quadrilaterals, ABCD EFGH. If the similarity ratio of ABCD to EFGH is 4:3, and it EH =60, find ADa. 450.90b. 40d. 80Please select the best answer from the choices providedBLook at image^^^ Evaluate the expression: (10) -3x (-2) +5 Hardigree Corporation uses a job-order costing system. Beginning balance in Work in Process $ 36,000 (1) Raw materials purchased on account $207,000 (2) Direct materials requisitioned for use in production $161,000 (3) Indirect materials requisitioned for use in production $ 42,000 (4) Direct labor wages incurred $ 87,000 (5) Indirect labor wages incurred $101,000 (6) Depreciation recorded on factory equipment $ 42,000 (7) Additional manufacturing overhead costs incurred $ 57,000 (8) Manufacturing overhead costs applied to jobs $219,000 (9) Cost of jobs completed and transferred from Work in Process to Finished Goods $403,000 The total amount of manufacturing overhead actually incurred was: Multiple Choice Read carefully and choose the option that answers the question.Estoy lejos de la ciudad y el pueblo y dentro del campo. Hay muchos animales aqu. Estn a la derecha, a la izquierda, enfrente y detrs de m. Dnde estoy? Ests en el pueblo. Ests en la tienda. Ests en la granja. Ests en el estadio. What book does Prudence use to practice writing her name? In The Witch of blackbird pond A The BibleB Hannah's book of spellsC Kit's hornbookD Mercy's school supplies Molly's hair was 20 inches long. Three years later it was 53 inches long. What was the percent increase, to the nearest hundredth, of Molly's hair length. What is the simplified form of each expression?21. 2x + 5x + 4xA. 11 + 3xB. 7xC. 11xD. 7x + 4x pls help. Find the Surface Area someone pls help i will make brainliest IF RIGHT ANSWER! !!1 !!1 ! answer this question Which one of these sentences represents the Counter Argument? 1) Beingthe firstborn is no easy task, you have to take care of your siblings and youhave way more responsabilities than the others. 2) Some people might saywe have it easy because we get to lead our siblings. 3) What they don'tknow, is that siblings often want to defy my authority, making my job a lotharder. *A: 1B: 2C: 3 Kirk earns $16 for each hour of dog walking. After a total of 3 hours of walking dogs, howmuch money will Kirk have earned? Describe who the watcher is in "Watcher" and tell me 2 things that he watches for. The expression (x-4) is equivalent to... (btw this is about polynomials and all that) Short Answer: Write a paragraph responding to 2 of the prompts below. Follow the CER (Claim-Evidence-Reasoning)formula. Write your answers in the space next to the stimulus.