The following data relates to the operation of a company over a period of three years; sales of GH¢400000, GH¢300000, and GH¢450000 for years 1, 2, 3 respectively. The selling price during these periods were GH¢100, GH¢150, and GH¢200, and the profits made on these sales are GH¢80000, GH¢60000, and GH¢90000 for years 1, 2 and 3 respectively. Using the High-Low method, the estimated cost function is A. C = 160000 + 30x B. C = 160000 +40x C. C = 150000 +100x D. C = 120000 + 40x

The following data relates to the operation of a company over a period of three years; sales of GH¢400000, GH¢300000, and GH¢450000 for years 1, 2, 3 respectively. The selling price during these periods were GH¢100, GH¢150, and GH¢200, and the profits made on these sales are GH¢80000, GH¢60000, and GH¢90000 for years 1, 2 and 3 respectively. Using the High-Low method, the estimated cost function is A. C = 160000 + 30x B. C = 160000 +40x C. C = 150000 +100x D. C = 120000 + 40x

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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The following data relates to the operation of a company over a period of three years; sales of GHC400000, GHC300000, and GHC450000 for years 1, 2, 3 respectively. The selling price during these periods were GHC100, GHC150, and GHC200, and the profits made on these sales are GHC80000, GHC60000, and GHC90000 for years 1, 2 and 3 respectively. Using the High-Low method, the estimated cost for an out level of 3000unit is OA. GHC160000 OB. GHC200000 OC. GHC280000 OD. GHC180000
Ash Company reported sales of $440,000 for Year 1, $490,000 for Year 2, and $540,000 for Year 3. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3?
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MN Plc's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is GHS27m. This includes: (i) GHS8m for a consignment of goods sold on 31 December 20X9 on which MN Plc will incur ongoing service and support costs for two years after the sale. The cost of providing service and support is estimated at GHS800,000 per annum. MN Plc applies a 30% mark-up to all service costs. (ii) GHS4m collected on behalf of Aintree. MN Plc acts as an agent for Aintree and receives a 10% commission on all sales. At what amount should revenue be shown in the statement of profit or loss of MN Plc for the year ended 31 December 20X9? (Ignore the time value of money.) A. GHS22,920,000 B. GHS21,800,000 C. GHS20,520,000 D. GHS21,320,000
Helo Company has provided the following data: Sales, P5,000,000; Interest expense, P30,000; Total assets, beginning of the year, P185,000; Total assets, end of the year, P215,000; Return on assets, 15.5%; Tax rate, 30%. What is the net income of Helo Co.? show solutions
Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is: Select one: A. 117.30% B. 86.36% C. 120.92% D. 130.29%
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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)