Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Contribution Income Statement and Operating Leverage
Florida Berry Basket harvests early season strawberries for shipment throughout the Eastern United States in March. The strawberry farm is maintained by a permanent staff of 10 employees and seasonal workers who pick and pack the strawberries. The strawberries are sold in crates containing 100 individually packaged one quart containers. Affixed to each one quart container is the distinctive Florida Berry Basket logo inviting buyers to "Enjoy the berry best strawberries in the world!" The selling price is $90 per crate, variable costs are $80 per crate, and fixed costs are $275,000 per year. In the year 2012, Florida Berry Basket sold 45,000 crates.
1. Prepare a contribution income statement for the year ended December 31, 2012.
2. Determine the company's 2012 operating leverage.
3. Calculate the percentage change in profits if sales decrease by 10%
4. Management is considering the purchase of several berry picking machines. This will increase annual fixed costs to $375,000 and reduce variable costs to $77.50 per crate. Calculate the effect this acquisition on operating leverage and explain any change.
candance hassell and abby lawson formed a partnership investing 240000 and 80000 respectively. determine their
lorge company bottles and distributes livit a diet soft drink. the beverage is sold for 50 cents per 16-ounce bottle
mercedes brow starts a merchandising business on december 1 and enters into three inventory purchases december 7 10
Determine the payback period and unadjusted rate of return (use average investment.) for each alternative. Indicate which investment alternative you would recommend. Explain your choice.
A stock record for Mountain Pool & Spa is given in the Working Papers. Instructions: Enter the following transactions on the stock record of a 450-gallon spa.
Explain the project closure process, and describe the major considerations for closing your project, smoothly
Explain how assets acquired as a lump-sum purchase would be recorded. What exactly do we mean by the term "operational assets"? Explain how to account for interest incurred while a company is constructing an asset.
Record the 2011 entries for the purchase of the machine and the lease on the books of Grande machinery and for Sunshine Engineering
prepare journal entries for the following transactions involving notes payable for homer company whose fiscal year ends
Discuss whether Jonni is behaving in a professional manner, Ethics and professional conduct in business
determine at least one issue that can result when you dispose of depreciable business property. assess the key
Write a brief memo explaining whether the effective interest rate method or the straight line method will produce the highest amount of interest expense recognized on the 2013 income statement.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd