Determine the operating profit company

Assignment Help Financial Accounting
Reference no: EM13535025

Company Y was on track to sell 550,000 units in the year, but late in the year, a major customer canceled a large order for 50,000 units. The business reduced its production output to 500,000 units, as you see in table. Determine the operating profit Company Y would have earned if it had manufactured and sold 550,000 units in the year.

 

Company Y

Company Z

Operating Profit Report for Year

Per Unit

Totals

Per Unit

Totals

Sales volume, in Units

 

500,000

 

2,000,000

Sales Revenue

$85.00

$42,500,000

$25.00

$50,000,000

Cost of Goods Sold Expense (see below)

-56

-28,000,000

-18.45

-36,900,000

Gross Margin

$29.00

$14,500,000

$6.55

$13,100,000

Variable Operating Expenses

-12.5

-6,250,000

-2.5

-5,000,000

Contribution Margin

$16.50

$8,250,000

$4.05

$8,100,000

Fixed Operating Expenses

 

-5,000,000

 

-7,500,000

Operating Profit

 

$3,250,000

 

$600,000

Manufacturing Activity Summary for Year

Per Unit

Totals

Per Unit

Totals

Annual Production Capacity, in Units

 

800,000

 

2,500,000

Actual Output, in Units

 

500,000

 

2,500,000

Raw Materials

$15.00

$7,500,000

$7.50

$18,750,000

Direct Labor

20

10,000,000

2.75

6,875,000

Variable Manufacturing Overhead Costs

5

2,500,000

5

12,500,000

Total Variable Manufacturing Costs

$40.00

$20,000,000

$15.25

$38,125,000

Fixed Manufacturing Overhead Costs

16

8,000,000

3.2

8,000,000

Product Cost and Total Manufacturing Costs

$56.00

$28,000,000

$18.45

$46,125,0

Reference no: EM13535025

Questions Cloud

Determine how far does the trampoline stretch : A gymnast of mass 52.8 kg is jumping on a trampoline. She jumps so that her feet reach a maximum height of 2.67 m above the trampoline and, How far does the trampoline stretch
What amount for the governmental activities accounts : What amount for the governmental activities accounts will include? Show your calculation
Lipase is a digestive enzyme that digest fat droplets : Lipase is a digestive enzyme that digest fat droplets inthe basic conditions(NaHCO3 is present) of the smallintestine. Indicate which of the following test tubes would showdigestion following incubation at 37 degreese C, and explaine whythe others..
Determine the spring constant of the tendon : If the length of the Achilles tendon increases 0.600 cm when the force exerted on it by the muscle increases from 3087 N to 4955 N, what is the "spring constant" of the tendon
Determine the operating profit company : Determine the operating profit Company Y would have earned if it had manufactured and sold 550,000 units in the year.
Organic compounds containing radioactive atoms : Organic compounds containing radioactive atoms can be used tofollow the biosynthesis of molecules in cells and organisms. In these experiments, the amount of radioisotope in proteinsderived from the cells or organisms is monitored.
Calculate the escape speed from the planet : A planet with a radius of 6.68 ×107 m has a gravitational field of magnitude 34.2 m/s2 at the surface. What is the escape speed from the planet
Discussion of key statistics : Discussion of key statistics provided by sources like Yahoo finance
Determine the production output level : Determine the production output level that would yield $4,850,000 operating profit for the year - you have ethical qualms about doing this, but you need the job.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd