A firm expects to sell 25,700 units of its product at $11.70 per unit and to incur variable costs per unit of $6.70. Total fixed costs are $77,000. What would the total contribution margin be?
Q: A company's sales for January are $250,000. If the company projects warranty obligations to be 5% of…
A: Formula used: Warranty liability = Sales x Warranty obligations percentage
Q: Debits always increase which accounts?
A: Introduction: Accounts: Accounts are classified in to 2 types: 1 ) Debit account 2 ) Credit account.…
Q: ABC Co. provided you the following information for the purpose of determining the amount of its…
A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…
Q: Preliminary plans are underway for construction of a new stadium for a major league baseball team.…
A: Solution:- Introduction:- Break-even point means total revenues equals to total expenses At…
Q: Canton Cave Company provided the following schedule of liabilities on December 31, 2014: P6,500,000…
A:
Q: The auto repair shop of Quality Motor Company uses standards to control the labor time and labor…
A: Formula: Labor rate variance = (Actual hourly rate - Standard rate per hour)*Actual hours worked…
Q: Use the information provided for Harding Company to answer the question that follow. Harding Company…
A: Quick ratio = Quick assets / current liabilities where, Quick assets = Current assets - Inventory -…
Q: Elfalan Corporation produces a single product. The cost of producing and selling a single unit of…
A: Financial advantage (disadvantage) as a result of accepting the special order = (Selling price per…
Q: A company purchased land in 1950 for $10,000. Although the land is now worth $300,000 the accounting…
A: The monetary unit principle states that you only record business transactions that can be expressed…
Q: Use the following information for the Quick Study below. (Algo) [The following information applies…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer…
A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…
Q: In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this…
A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in inventory…
Q: Variable cost ratio is 60%. While breakeven ratio is 65%. Net income is P42,000. Fixed cost must…
A: Fixed cost is the amount of expenses which do no vary with the change in production level. Variable…
Q: Match the following with the best mode of entry Fashion Label [Choose ] + Fast Food Operator [Choose…
A: Basic concept of Accounts and business
Q: As per APES 110, an auditor may not: Select one: perform advisory services for any audit client be a…
A: APES 110 provides the code of ethics for professionals. It also includes the independence ethics for…
Q: During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting…
A: The amount of retained earnings fluctuates form year to year with changes in income, dividends or…
Q: Internal Rate of Return A project is estimated to cost $117,055 and provide annual net cash flows of…
A: Internal rate of return is the rate at which the present value of cash inflows is equal to present…
Q: A company purchased a building worth $500,000 by paying $50,000 in cash and acquiring a bank loan…
A: Following journal entries will be passed to record purchase of assets and bank loan obtained : 1.…
Q: Provide a review of these theories.
A: Dividend policy refers to the set of rules or norms that a company follows to decide how much of its…
Q: Roush Inc. has 100,000 shares of $5 par value common stock issued and outstanding. On July 1, 2019…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: DGT Incorporated is preparing its cash budget for April. The budgeted beginning cash balance is…
A: Formula: Borrowings = Desired Ending Cash balance - Excess (deficiency) of cash available over…
Q: On April 1, 2006, Naruto Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face…
A: A BOND IS A DEBT SECURITY WHICH BORROWERS ISSUE BONDS TO RAISE MONEY FROM INVESTORS WILLING TO LEND…
Q: On June 1, 2021 Maroon Company entered into a 5-year nonrenewable lease, commencing on that date,…
A: As an operating lease, rent expense will be recognized uniformly over the 5-year term of the lease…
Q: Apex Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: Solution... Selling price per unit = $220 Variable cost per unit = $170 Contribution margin…
Q: Which of the following describes a corporation?
A: GIVEN the following describes a corporation is
Q: Variable cost ratio is 60%. While breakeven ratio is 65%. Net income is P42,000. Fixed cost must be
A: Break even point= fixed cost / contribution Contribution ratio = fixed cost /65% Given variable…
Q: Required information Problem 9-5A (Static) Computing and analyzing times interest earned LO A1 [The…
A: The ability to pay interest is measured by Times Interest ratio. Higher the ratio the better will be…
Q: A public school teacher receiving a monthly salary of P26,494 with mandatory annual deductions of…
A: GIVEN A public school teacher receiving a monthly salary of P26,494 with mandatory annual…
Q: A company earned net income of $6,000 in its first month of business and paid dividends of $1,000.…
A: Retained earnings are the balance of accumulated profit earned during the life of the business after…
Q: CengageNOWv2 | Online teachi X +…
A: Solution... Total manufacturing costs incurred = Transferred to Finished goods + ending work…
Q: A corporation commenced operations on January 1, 2019. It has the following account balances at…
A: Common Stock - Common Stock is the shares issued at the time of incorporation of business. Common…
Q: Accounting for Cash Discounts Illustration An entity purchases inventory with a list price of…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A.…
A: Introduction: Working capital: Capital used for running the day to day business transactions called…
Q: what problems do you see with the rule requiring a balanced cyclically adjusted budget?
A: The cyclically adjusted budget balance is known as the full employment budget . the basically…
Q: MON Co. Is a dealer in machinery. On January 1, 2016, a machinery was leased to another entity with…
A: GIVEN Annual rental payable at the end of each year 3,000,000 Lease term and useful life of…
Q: The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 202…
A: Accounts payable means those accounts of suppliers to whom business has made credit purchases on…
Q: - Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10…
A: Bonds are high-risk financial instruments that allow a corporation to raise funds and fulfill…
Q: 2. Pedro Reyes purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It is…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: On June 1, 2024, First National leased a building. The lease agreement calls for First National to…
A: Monthly interest rate = 7%/12 = 0.58333333% Number of months = 12 x 2 = 24
Q: Gordon Helps and Associates Company makes two products. Information regarding one of those products…
A: Cost is the amount incurred on the making of a good. It includes the cost incurred on production as…
Q: As per APES 110, an auditor may not: Select one: perform advisory services for any audit client be a…
A: Auditor is the professional who audits or examines the books and financial reports of an entity.
Q: 1. A warehouse building is constructed at a first cost of P7.5M and with an estimated salvage value…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: An accounting policy requiring a corporation to capitalize any asset over $5,000 in value would be…
A: Accounting principles are the rules and guidelines that companies must follow when reporting…
Q: SLO-5.3. If the credit terms are 2/10, n/30, the credit period is days. 3 010
A: Introduction: Credit period: In general sales can be of two types Credit sales and cash sales. With…
Q: Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The…
A: A. A stock split: No change in total equity B. Recording Revenue: Increase in total equity C.…
Q: • Bianca Capital issued 500, $1,000 convertible bonds at 103. Each bond will be converted to 10…
A: Bond retirement occurs when an organization repurchases bonds that something that previously issued…
Q: On 1 January 2019, Bad Ltd acquired all the assets and liabilities of Wolf Ltd. Wolf Ltd has…
A: GIVEN On 1 January 2019, Bad Ltd acquired all the assets and liabilities of Wolf Ltd. Wolf Ltd…
Q: REQUIREMENTS: 1. What is the net lease receivable of the lessor at the commencement of the lease?
A: Lease refers to a contract between two parties under which one party who is the real owner of an…
Q: Using the following information, prepare a bank reconciliation. • Bank balance: $4,587 • Book…
A: Introduction: Bank Reconciliation statement: To reconcile the differences between bank book and cash…
Q: Which of the statements below, are potential benefits arising from an assurance service? I.…
A: ASSURANCE SERVICES ARE AN INDEPENDENT EXAMINATION OF A COMPANY'S PROCESS AND CONTROLS . IT AIMS TO…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?
