Intro to Managerial Accounting, Managerial Accounting

Assignment Help:
I don''t know how to do a variable income statement. Here is my assignment:


The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classified all books into five categories based on cost of acquisition and estimated sales price. See below for details about books purchased and sold during the last year (20XX).





Price Categories










A
B
C
D
E

Units Sold
2,000
1,000
500
400
400

Units Purchased
3,000
1,200
1,000
1,000
1,000








Resale Price
$4.00
$15.00
$25.00
$45.00
$40.00

Cost
$0.50
$5.00
$10.00
$20.00
$20.00




In addition to purchasing inventory (used books), The Used Book Store incurs some operating expenses.



Variable operating expenses



Shipping per book
$ 1.50





Fixed expenses



Internet-related costs
$5,000


Travel, etc.
2,000


Advertising
1,000


Other overhead
3,000




Required:

Prepare a variable costing (behavioral) income statement for the company in good format.
Prepare a second variable costing statement assuming 90% of all the books in each category purchased were actually sold.
Prepare a third variable costing statement assuming that the price is increased by 50% for all five categories (use original sales information

Related Discussions:- Intro to Managerial Accounting

What is nile''s strategy for success in the marketplace ?, what is nile's s...

what is nile's strategy for success in the marketplace ?

What does your analysis tell you about each firm, When the stock market is ...

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar

Cash forecasting and budgeting, A cash budget is one of the main important ...

A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered. Cred

Computation of working capital required, Computation of Working Capital Req...

Computation of Working Capital Required 1. Operating Cycle Period = M+W+F+D-C     = 101.38 +2

Extensions to linear programming, Extensions to Linear Programming In man...

Extensions to Linear Programming In many real situations the solutions to linear programming models make sense only if they have integer values. Rounding off the linear programmi

Evaluation of the regression model, EVALUATION OF THE REGRESSION MODEL ...

EVALUATION OF THE REGRESSION MODEL The regression equation calculated above was based on the assumption that cost varied with the units produced. However, a number of different

Steady state condition, Steady state condition In many cases, the Marko...

Steady state condition In many cases, the Markov process will converge to a steady state or equilibrium. In general, as number of transitions `n' increase, the state values

The case of a fixed discount-discount structures, The case of a fixed disco...

The case of a fixed discount When evaluating inventory decisions when a fixed discount rate exists, the appropriate procedure is to compare the total costs of the EOQ with the

Cost-volume relationship utilization, Cost-volume relationship utilization ...

Cost-volume relationship utilization Cost-volume-profit study is an estimating concept which can be employed in a variety of pricing circumstances. You can employ the cost-volu

Make or buy decisions under limiting factors, MAKE OR BUY DECISIONS UNDER L...

MAKE OR BUY DECISIONS UNDER LIMITING FACTORS One reason for buying products/services from another organisation is the scarcity of resources, so that the company may be unable t

Write Your Message!

Captcha
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