Expert Answer :BADM 5040 Managerial Accounting Exam Solution 27

Solved by verified expert :Problem – I — (20 Puntos)Reavis Company prepared the following income statement for 2012:REAVIS COMPANYIncome StatementFor the Year Ended December 31, 2012_____________________________________________________________________________Sales (20,000 units) ………………………………………………………………………………… $600,000Variable expenses ………………………………………………………………………………….. 360,000Contribution margin ……………………………………………………………………………….. 240,000Fixed expenses ………………………………………………………………………………………. 180,000Net income ……………………………………………………………………………………………. $ 60,000InstructionsAnswer the following independent questions and show computations to support your answers.What is the company’s break-even point in units?Cuál es el punto de empate en unidades?How many more units would the company have had to sell to earn net income of $90,000 in 2012?Cuántas unidades adicionales tiene que vender la compañía para obtener una ganancia de $90,000 en el 2012?If the company expects a 25% increase in sales volume in 2013, what would be the expected net income in 2013?Si la compañia espera un aumento de 25% en el volumen de ventas en el 2013, cuál sería la ganancia esperada para el 2013?How much sales dollars would the company have to generate in order to earn a target net income of $110,000 in 2013?Cuántas ventas en dólares tiene que generar la compañía para obtener una ganancia de $110,000 en el 2013?Problem I – Solution — Cost-Volume-Profit (20 Puntos)1245Problem II (20 Puntos)ROMALY Company bottles and distributes Frapes, a flavored summer beverage. The beverage is sold for $1.50 per 8-ounce bottle to retailers. Management estimates the following revenues and costs at 100% of capacity.Net sales$3,150,000Selling expenses-variable$110,000Direct materials600,000Selling expenses-fixed90,000Direct labor500,000Administrative expenses-variable100,000Manufacturing overhead-variable580,000Administrative expenses-fixed80,000Manufacturing overhead-fixed310,000InstructionsA. How much is net income for the year using the CVP approach?Cuánto es la ganancia neta para el año usando el formato de CVP?B. How much is the contribution margin ratio?Cuánto es el % de Margen de Contribución?C. Compute the break-even point units and dollars.Compute el punto de empate en unidades y en dólares?Solution to Problem II – ROMALY Company (20 Puntos)AVARIABLE COSTING INCOME STATEMENTDollarsPer Unit$$$$$BBEP in units:BEP in dollars:CContribution Margin Ratio:Problem III (20 Puntos)MACARY Music, Inc. produces a hip-hop CD that is sold for $15. The contribution margin ratio is 30%. Fixed expenses total $6,750.InstructionsA. Compute the variable cost per unit.Compute el costo variable por unidad?B. Compute how many CDs that MARCARIE will have to sell in order to break even.Compute cuántas unidades de CDs MARCARIE tiene que vender para salir empate (sin ganancias ni pérdidas)?Compute how many CDs that MARCARIE will have to sell in order to make a target net income of $16,200.Compute cuántos CDs MARCARIE tiene que vender para obtener una ganancia de $16,200?Solution to Problem III – MARCARY Music, Inc. (20 Puntos)A.B.C.Chapter 6 – Apendice – Absorption and Variable CostingProblem IV – Ex. 102 (20 Puntos)Momentum Bikes manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory):Variable production costs $90 per bikeFixed production costs $450,000Variable selling & administrative costs $22 per bikeFixed selling & administrative costs $500,000Selling price $200 per bikeProduction 20,000 bikesSales 17,000 bikesInstructions(a) Prepare a brief income statement using variable costing.Prepare un Estado de Ingresos simple usando el formato de costo variable?Solution Problema IV – Ex. 102 (20 Puntos)a. Income Statement variable costing.Problema – V – Incremental Analysis (20 Points)Anheiser has three divisions: Bud, Wise, and Er. The results of May, 2010 are presented below:BudWiseErTotalUnits sold3,0005,0002,00010,000Revenue$70,000$50,000$40,000$160,000Less variable costs32,00026,00016,00074,000Less direct fixed costs14,00019,00012,00045,000Less allocated fixed costs6,00010,0004,00020,000Net income$18,000($5,000)$ 8,000$21,000All of the allocated costs will continue even if a division is discontinued. Anheiser allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Anheiser feels that it should be discontinued. Anheiser feels if the division is closed, that sales at the Bud division will increase by 20%, and that sales at the Er division will stay the same.InstructionsA. Prepare an analysis showing the effect of discontinuing the Wise division.Prepare un análisis demostrando el efecto de descontinuar la división Wise.B. Should Anheiser close the Wise division? Briefly indicate why or why not.Debe Anheiser cerrar la division Wise? Explique brevemente porqué o porqué no.Problem – V – Incremental Analysis (20 Points)A.BudWiseErTotalCalculations:Revenue =Variable costs =Allocation of total allocated fixed costs:To Bud =To Er =B.