(62) Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Break-even point (2) Break-even point $ units
Q: On July 1, Aloha Company exercises a call option that requires Aloha to pay $346,800 for its…
A: Retirement of bonds means to repay the amount borrowed by the entity by issuing the bonds, usually…
Q: Blue Mining Company purchased land on February 1, 2025, at a cost of $914,200. It estimated that a…
A: The cost of goods sold represent the direct cost incurred to produce the goods. The direct costs…
Q: Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Divisio…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: The Athletic Village has done very well the past year, and its stock price is now trading at $88 per…
A: The stockholders' equity is affected with declaration of stock dividend. The stock dividend remains…
Q: Joseph just closed a tough year. His new product idea got a much slower sales start than he hoped,…
A: SALES BUDGETSales Budget is the quantitative & Financial statement of Sales, prepared prior to a…
Q: Carla Vista Company sells 250 products for $100 each to Pharoah Inc., payable in 30 days. Carla…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following data…
A: The "lower-of-cost- or -net realizable value" is an accounting principle used to value and report…
Q: Assume that TDW Corporation (calendar-year-end) has 2023 taxable income of $652,000 for purposes of…
A: Answer:- Depreciation meaning:- Depreciation is the term for the decline in value of tangible assets…
Q: Cannon Co. has a product with a unit selling price of $500, variable cost per unit $300, and fixed…
A: Variable costs changes with change in activity level, but fixed costs do not change with activity…
Q: Petty cash R7 000, Bank overdraft R 5 000, Prepaid Expenses R 8000. Total current liabilities in the…
A: Correct answer : False This statement is false because prepaid cash and Prepaid expenses are assets…
Q: Transaction Analysis and Adjustments For each of the following unrelated situations, determine the…
A: An accounting transaction has two aspects. It will affect debit and credit by the same amount. A…
Q: Required information [The following information applies to the questions displayed below.] Marc and…
A: Answer:- Federal Taxable IncomeThe Internal Revenue Service (IRS) imposes the federal income tax in…
Q: On 1 July 2022, Entity A entered into Contract X with a customer, Entity B, to sell Product A for…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: You just switched from a savings account that paid 4% to one that pays 5%. If you have $75,000 in…
A: Compound interest is when you earn interest not just on your initial amount but also on the interest…
Q: On January 1, 2016, Titans Company issued 1,000 shares of 10%, $200 par value, cumulative preferred…
A: Cumulative Preferred Stock :— It is one of the types of preference shares in which it is mandatory…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Contribution means the difference between the selling price and variable cost .Fixed cost when…
Q: Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs…
A: LIFO means last in first out where as FIFO means first in first out.Inventory and cost of goods sold…
Q: 3-22 Contribution margin, decision making. (LO 2) Welch Men's Clothing's revenues and cost data for…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Exercise 7-2 (Algo) First Stage Allocation [LO7-2] SecuriCorp operates a fleet of armored cars that…
A: First stage allocation is the allocation of overhead costs to different overhead activity cost…
Q: On June 10, Kingbird Company purchased $8,200 of merchandise from Blossom Company, on account, terms…
A: The journal entries are prepared to record the transactions on regular basis. The cost of goods sold…
Q: zio Co. purchases a machine for $11,600, terms 2/10, n/60, FOB shipping point. Rizio paid within the…
A: The process of determining and allocating the expenses or expenditures involved with the production,…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: The following comparative information is available for crane company 2025 LIFO Sales revenue…
A: Net income is the difference between total revenues and total expenses in the business. Quality of…
Q: Cash and Cash Equivalents 1. $10,000 of government Treasury bills purchased 10 days prior to their…
A: Cash and cash equivalents act as a financial cushion, enabling businesses to cover urgent needs, pay…
Q: Harvest Company has the following December 31 General Ledger Account Balances after adjustments…
A: Allowance for Doubtful AccountThe quantity of bad debts or unrecoverable receivable accounts is…
Q: The Denim World sells fabrics to a wide range of industrial and consumer users. One of the products…
A: Economic Order Quantity (EOQ)Economic order quantity the techniques which was used in the cost…
Q: Ullie's Sporting Goods is a retailer of sporting equipment. Last year, Ullie's sales revenues…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Gibson Company produces a product that sells for $29 per unit and has a variable cost of $11 per…
A: Break-even point is the point of sales at which no gain or loss is incurred by the company.
Q: Revenue and cost details for a company’s single product are as follows: BWP per unit BWP per unit…
A: Break-even sales are the amount of sales at which a company or product neither profits nor loses…
Q: operations: Variable costs per unit: Manufacturing: Direct materials Direct labor $26 $16 $3 $3…
A: The income statement is one of the important financial statements of the business. It records the…
Q: Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts,…
A: Adjusting entries are those that are reported in the books at the end of the period. These are…
Q: andhill Company, a machinery dealer, leased a machine to Wildhorse Corporation on January 1, 2025.…
A: Lease receivables are an important aspect of lessor accounting because they reflect the financial…
Q: A company expected its annual overhead costs to be $750000 and direct labor costs to be $500000.…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: On April 1 of Year 1, Mountain Company sold merchandise and received a $34,800, three-year,…
A: A non-interest-bearing note, also known as a zero-interest note or zero-coupon note, is a financial…
Q: Your answer is partially correct. Knowledge Check Carla Vista Works' uses a periodic inventory…
A: Cost of goods sold is the cost of units sold during the period. It is calculated as beginning…
Q: ples its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the…
A: Lets understand the basics.Direct material price variance is a variance between the price at which…
Q: Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Easy Incorporated uses the FIFO method in its process costing system. The following data concern the…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $17 per unit and…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: On April 1, two jobs were in process at Hartwell Contracting. Details of the jobs follow: Job Number…
A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…
Q: How would an AIS help a company identify the products with the highest profit margins? Why is that…
A: The term "accounting information system" (AIS) refers to a system that combines humans, software,…
Q: Current Attempt in Progress On October 1, 2024, Kingbird Company establishes a petty cash fund by…
A: Petty cash fund is a small amount of cash that a business keeps aside to pay for minor, everyday…
Q: Production data for the month of September was: 13,400 units Completed and Transferred out 4,800…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Monroe county levies a tax on the value of real property located within the county. The tax equals 3…
A: Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…
Q: The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited…
A: The cost basis of an asset at the moment it is sold is its tax basis. An asset's initial acquisition…
Q: Attached is information from the accounting records of Burgundy Corporation for the year ending…
A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…
Q: [The following information applies to the questions displayed below.] Clopack Company manufactures…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: When determining support for a qualifying child or qualifying relative dependent, which item is…
A: When determining if someone is your dependent for tax purposes, total support includes the amounts…
Q: Rockline Industries is a leading manufacturer of wet wipes, coffee filters, and baking cups and is…
A: An income statement stands for the statement that shows profits and loss of the firm, its revenue…
Q: 1 eBook Ask Print References Problem 11-15 (Algo) Review problem-understanding liquidity measures LO…
A: The current is the sum of cash, accounts receivable, and inventory. The quick ratio is the current…
what is the break even point in units and the break even point in sales dollars?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)
- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.
- Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of 52 per case (a case contains 24 cans of nuts). Kaune sold 150,000 cases last year to the following three classes of customer: The supermarkets require special labeling on each can costing 0.04 per can. They order through electronic data interchange (EDI), which costs Kaune about 61,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs 45,000 per year. The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds 25 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 8 percent of sales. Bad debts expense amounts to 9 percent of sales. Convenience stores also require special handling that costs 30 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of 15,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of 30,000 per year. Required: 1. Calculate the total cost per case for each of the three customer classes. (Round unit costs to four significant digits.) 2. Using the costs from Requirement 1, calculate the profit per case per customer class. Does the cost analysis support the charging of different prices? Why or why not? 3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
- Classify costs Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Shipping boxes used to ship orders Consulting fee of 200,000 paid to industry specialist for marketing advice Straight-line depreciation on sewing machines Salesperson's salary, 10,000 plus 2% of the total sales Fabric Dye Thread Salary of designers Brass buttons Legal fees paid to attorneys in defense of the company in a patent infringement suit, 50,000 plus 87 per hour Insurance premiums on property, plant, and equipment, 70,000 per year plus 5 per 30,000 of insured value over 8,000,000 Rental costs of warehouse, 5,000 per month plus 4 per square foot of storage used Supplies Leather for patches identifying the brand on individual pieces of apparel Rent on plant equipment, 50,000 per year Salary of production vice president Janitorial services, 2,200 per month Wages of machine operators Electricity costs of 0.10 per kilowatt-hour Property taxes on property, plant, and equipment Instructions Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column. Identify each cost by letter in the cost column.Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from 35,000 to 200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time front planning and supervisory personnel, as well as that of some of the companys officers, because it was a more sophisticated type of machine than the regular production models. Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled Asset Construction Account. An analysis of the charges to this account as of December 31, 2019, follows: Olson allocates factory overhead to normal production as a percent of direct labor dollars as follows: Olson uses a flat rate of 40% of direct labor dollars to allocate general and administrative overhead. During the machine testing period, a cutter head malfunctioned and did extensive damage to the machine table and one cutter housing. This damage was not anticipated and was the result of an error in the assembly operation. Although no additional raw materials were needed to make the machine operational after the accident, the following labor for rework was required: Olson has included all these labor charges in the asset construction account. In addition, it included in the account the repairs and maintenance charges of 1,340 that it incurred as a result of the malfunction. Required: 1. Compute, consistent with GAAP and common practice, the amount that Olson should capitalize for the milling machine as of December 31, 2019, when it declares the machine operational. 2. Next Level Identify the costs you included in Requirement 1 for which there are acceptable alternative procedures. Describe the alternative procedure(s) in each case.