Classify each of the following costs for a jeans manufacturing company as a variable cost, committed fixed cost, or discretionary fixed cost.

d. The cost of landscaping and mowing the grass-the contract with a local mowing company runs from month to month

A study was done to determine the age, number of times per week, and the duration (amount of time) of residents using a local park in San Jose. The first house in the neighborhood around the park was selected randomly and then every eighth house in the neighborhood around the park was interviewed. The sampling method was: a. simple random b. systematic c. stratified d. cluster

A study was done to determine the age, number of times per week, and duration (amount of time) of resident use of a local park in San Jose. The first house in the neighborhood around the park was selected randomly and then every 8th house in the neighborhood around the park was interviewed.

"Number of times per week" is what type of data?

a. qualitative (categorical)

b. quantitative discrete

c. quantitative continuous

A study was done to determine the age, number of times per week, and the duration (amount of time) of residents using a local park in San Antonio, Texas. The first house in the neighborhood around the park was selected randomly, and then the resident of every eighth house in the neighborhood around the park was interviewed. The population is _________.

Due to erosion, a river shoreline is losing several thousand pounds of soil each year. A linear equation that expresses the total amount of soil lost per year is y = 12,000x. What is the y-intercept? Interpret its meaning.

Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow:

Fixed expenses total$183,750 per month.

Required:

1. Prepare a contribution format income statement for the company as a whole. Carry computations to one decimal place.

2. What is the company's break-even point in dollar sales based on the current sales mix?

3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? What are your assumptions?

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person)                                    $18
Favors and program (per person)$2
Band                                                $2,800
Rental of ballroom$900
Professional entertainment during intermission      $1,000
Tickets and advertising$1,300

The committee members would like to charge $35 per person for the evening’s activities.

Required:

1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)?
2. Assume that last year only 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even?
3. Refer to the original data ($35 ticket price per person). Prepare a CVP graph for the dinner-dance from zero tickets up to 600 tickets sold.

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed expenses associated with the game total$182,000 per year, and variable expenses are $6 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. 1. Prepare a contribution format income statement for the game last year and compute the degree of operating leverage. 2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Compute: a. The expected percentage increase in net operating income for next year. b. The expected total dollar net operating income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Buffalo Outback Outfitters is a public company with $37,360,000$ shares of stock outstanding. As of the year's end the stock was selling for $\$ 26.18$ per share, and had total net income of $\$ 51,710,000$ and total owner's equity of $\$ 416,850,000$.

Calculate the shareholder ratios of earnings per share and book value per share for Buffalo Outback Outfitters.

Buffalo Outback Outfitters is a public company with $37,360,000$ shares of stock outstanding. As of the year's end the stock was selling for $\$ 26.18$ per share, and had total net income of $\$ 51,710,000$ and total owner's equity of $\$ 416,850,000$.

Calculate the P/E ratio and the price-to-book ratio for Buffalo Outback Outfitters.

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.

a. Assume that only one product is being sold in each of the four following case situations:

b. Assume that more than one product is being sold in each of the following case situations:

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)

a. Assume that only one product is being sold in each of the four following case situations:

b. Assume that more than one product is being sold in each of the four following case situations:

Menlo Company distributes a single product. The company's sales and expenses for last month follow:

Required:

1. What is the monthly break-even point in unit sales and in dollar sales?

2. Without resorting to computations, what is the total contribution margin at the break-even point?

3. How many units would have to be sold each month to attain a target profit of $90,000? Verify your answer by preparing a contribution format income statement at the target sales level.

4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by$50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company’s fixed expenses are$180,000 per year. The company plans to sell 16,000 units this year.

Required:

1. What are the variable expenses per unit?

2. What is the break-even point in unit sales and in dollar sales?

3. What amount of unit sales and dollar sales is required to attain a target profit of $60,000 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by$4 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $60,000?