Assume that William's fixed costs, variable costs, and sales price were the same last year, when he made $ 24,500 in net income. How many hats did William sell last year, assuming a 30% income tax rate? (Use the rounded contribution margin per unit calculated in the previous part.) hats
Q: use the contribution margin approach.
A: Meaning of Contribution Margin Approach Contribution Margin approach is used to calculate the net…
Q: You own and manage a yard care business in which you charge $50 per visit to care for each yard…
A: Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…
Q: A business has fixed costs of $6000 per month and the product sells for $200. The variable cost is…
A: Contribution margin is the difference between sales revenue and variable cost. Variable cost is the…
Q: Last year Minden Company Introduced a new product and sold 25100 units of It at a price of $95 per…
A: Note: Since we only answer up to 3 sub parts, first three subparts will be answered. Please resubmit…
Q: It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer…
A: Working note:
Q: Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…
A: Margin of Safety In a simple term margin of safety which describes as the difference between the…
Q: If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax…
A: No. of units need to sell to earn desired profit = (Desired profit before tax + Fixed costs) /…
Q: A product sells for ₱40 per unit and has variable expenses of ₱26 per unit. Fixed expenses total…
A: Selling price = ₱40 Variable cost = ₱26 Fixed cost = ₱245000 Let the units for after tax profit of…
Q: The following information relates to a company selling 25000 pairs of shoes for a year; selling…
A: Net sales - variable cost - fixed cost =profit before tax Profit before tax - tax expense =after tax…
Q: The sales in units required by Photo Finish to make an after-tax profit (TA) of $20,000, given an…
A: Introduction:- Cost-volume-profit (CVP) analysis is an important and systematic method that provides…
Q: Last year a local restaurant realized sales of $300,000 with fixed costs of $110,000 and total…
A: Contribution is income on sales less variable cost
Q: It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece.…
A: Formula: Contribution margin = Sales revenue - variable cost.
Q: The following annual information is for Bressler Corporation: Product X Revenue per unit: $10.00…
A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…
Q: Sunshine Company’s single product has a selling price of P25 per unit. Last year the company…
A: Required sales in units can be calculated by dividing sum of fixed cost and profit with contribution…
Q: The following information relates to a company selling 25000 pairs of shoes for a year; selling…
A: "Since you have asked multiple questions, we will solve the first question for you". If you want any…
Q: Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: A company that sells its single product for P40 per unit had after-tax net income for the past year…
A: Solution... Net income after tax = P1,188,000 Income before tax = Income after tax ÷ (100% - tax…
Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and…
A: Before tax profit = P140,000 / 70% = P200,000 Fixed cost = P100,000 Sales = P200,000 / 20% =…
Q: Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $179,300, how…
A: Break even point ( in dollars ) = Fixed costs / Contribution margin ratio
Q: Sunshine Company's single product has a selling price of P25 per unit. Last year the company…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes…
A: Given Information: Sales = $4,000,000 Profits after taxes = $210,000 Sales per unit = $200 Variable…
Q: Shoecraft earns a 42% contribution margin as percent of selling price, What is Shoecraft's ANNUAL…
A: Step 1 Profit is the difference between sales and cost of sales of all the sales made by the entity…
Q: ABC Audio sells headphones and would like to earn an after-tax profit of $400 every week. Each setof…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: The rental cost of renting a machine that is $20,000 per year plus $0.70 per machine hour of use…
A: Cost is the amount of money incurred on the making or selling of the goods or services. The cost, in…
Q: The manufacturer of a product had fixed costs of $120,300 per year. The variable costs are 50% of…
A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…
Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sa 20% and the tax…
A: Contribution margin- Contribution Margin is defined as selling price minus variable cost, and it…
Q: Nature’s Own makes three types of wood flooring: Oak, Hickory, and Cherry. The company’s tax rate is…
A: Breakeven point It is the point where revenues of a product equals the cost of production.…
Q: What is the breakeven point in unit sales and dollars for each…
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: It costs the American Automobile Company $8,000 to produce each automobile, and fixed costs (rent…
A: We need to answer following questions: a) How many cars should be produced each week to maximize…
Q: The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00…
A: Formula: Unit contribution margin = Selling price - Variable cost per unit
Q: MinMin Corporation gathered the following information: Income tax rate…
A: Net income: It is the amount calculated by subtracting total expense from the total revenue of the…
Q: Your company’s single product has a selling price of $25 per unit and contribution margin of $10.…
A: Variable cost per unit=Sale per unit-Contribution per unit=$25-$10=$15
Q: pany currently sells product A, B and C in equal quantities and at the same selling price per unit.…
A: In the given question, contribution margin of product C is missing but overall contribution margin…
Q: 1. If the company want to achieve target net income $800,000 and the tax rate is 30%, calculate how…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is…
A: Disclaimer: Since you have put a multi-part question, we are providing you with the solutions to the…
Q: AdamGranger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…
A: Break even point refers to that volume of operation where, there is no profit or loss to an…
Q: eather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: sales are estimated at 125,000 units, and it is required to achieve income after tax of 75,000…
A: Total Estimated variable cost = Total Estimated Sales - Total Estimated Fixed Cost - Total…
Q: Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. You cost…
A: Net income is the overall income earned by the company during the accounting period. It includes…
Q: During the year, the total fixed costs amounted to P60, 000 when the contribution margin is 40% of…
A:
Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…
A: The price of the product per unit = P14.7 Refer step2 for explanation
Q: A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000…
A: Selling price 180.00 Break-even sale units 15000 Break-even sale amount 15000*180…
Q: Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is…
A: Sales are the basic revenue generating operation of the trading company which involves selling of…
Q: Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects…
A: Net operating income = Contribution margin - Fixed costs Contribution margin = Net operating income…
Q: Rusty, Inc. is the sole distributor of a computer product that sells for $50 per unit, and has a…
A: Marginal Costing - Marginal Costing is good method used to calculate cost of each additional unit…
Q: ow many T-shirts must the company sell this year in order to earn $56,640 in net income? (Use the…
A: Working: 1) Contribution Per Unit = $20 - $8.50 = $11.5 per…
Q: An individual’s utility function is given by 1000x_(1)+450x_(2)+5x_(1)x_(2)-2x_(1)^2-x_(2)^2 where…
A: Solutuin- Given that-The utility function…
Q: Phil makes and sells rugs at his roadside stand. His monthly fixed cost for owning the stand is…
A: Phil's fixed cost = $1500Phil's total cost when he sells 12 rugs = $1548Phil's total variable cost…
Contribution margin per unit = $5
Current level of fixed costs = $85000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Mary Smith is the owner and manager of a small bakery, “Mary’s Cookies”, which is known for its special gigantic almond-chocolate chip cookies. She has been offered a job by Cookie Monster, Inc., to come to work for them at $110,000 per year. Currently, she is producing her own cookies and she has revenues of $260,000 per year. Her costs are $10,000 for rent, $35,000 for ingredients, $5,000 for utilities, and $80,000 for wages, including $40,000 for Mary in concept of manager’s salary. She has $100,000 of her own money invested in the operation, which if she leaves, can be sold for $40,000 that she can invest at 8.2% per year. Using this information, calculate: Accounting profits = $ Economic profits = $ If instead, Mary pays herself no salary: Accounting profits = $ Economic profits = $LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $270 per month. a. If LaMont receives one pass (worth $270) each month, how much of this benefit must he include in his gross income each year? b. If the company provides each employee with $270 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
- LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $285 per month. Required: If LaMont receives one pass (worth $285) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $285 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $284 per month. If LaMont receives one pass (worth $284) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $284 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $57,600 in take-home pay. She rents an apartment for $1,200 per month. While in school, she accumulated about $37,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $8,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. 1. Calculate Chelsea’s debt payments-to-disposable income ratio. Round your answer to two decimal places.
- Aling Minda is operating a buy and sell business, she sells broomsticks (walis tingting) in her stall at a local market. She gets her broomsticks from a local supplier for 25 pesos each. She then adds 50 percent mark-up on each broomstick. Every day, Aling Minda can sell 30 broomsticks a day.Each autumn, as a hobby, Anne Magnuson weaves cotton place mats to sell through 3 local craft shop. The mats sell for $20 per set of four. The shop charges a 10% commission and remits the net proceeds to Magnuson at the end of December. Magnuson has woven and sold 25 sets each year for the past two years. She has enough cotton in inventory to make another 25 sets. She paid $7 per set for the cotton. Magnuson uses a four-harness loom that she purchased for cash exactly two years ago. It is depreciated at the rate of $10 per month. The Accounts Payable balance relates to the cotton inventory and is payable by September 30. Magnuson is considering buying an eight-harness loom so that she can weave more intricate patterns in linen. The new loom costs $1,000 and would be depreciated at $20 per month. Her bank has agreed to lend her $1,000 at 18% interest per year, with $200 payment of principal, plus accrued interest payable each December 31. Magnuson believes she can weave 15 linen place…Floyd owns an antique shop. During the year, he and his wife, Amanda, who works as a real estate broker, attend a 3-day antique show in Boston. The following facts are related to the trip: Train per person $ 110 Hotel daily rate—double occupancy * 115 Meals—$37 per day per person 37 Incidentals—$14 per day per person 14 *The hotel rate for double occupancy is $20 more than the single occupancy rate. What amount can Floyd and Amanda deduct as travel expense, rounded to the nearest dollar?
- Jason owns a fish shop where he sells an exotic variety of tuna fish which he imports from Japan.Jason refrigerates the fish in a cold storage facility near his shop that charges him a fixed annual fee of $1000 and variable charge of $5 per day for each fish container that is stored.Every morning, Jason brings fish from the cold storage to his shop for sale. Jason estimates that he incurs $10,000 electricity cost each year on refrigerating the fish inside his own shop.Jason incurs the following ordering costs:Delivery charges of $10,000 per deliveryImport duties of $300 per cartonCustom fees of $200 per orderImport license fee of $150 per annumJason currently imports fish by placing one order of 20 cartons every month. Each carton costs $2,000.Jason is wondering if he can save inventory costs by adopting EOQ model.a) Calculate the current annual total inventory costsb) Calculate the economic order quantityc) Calculate the annual total inventory costs if EOQ is usedVeronica Valentine works as a financial consultant as her sideline which earns her approximately 35,000 a month. She however, has a full time job as a supervisor in one of the big corporations in the City. Her full time job pays her 84,950 per month and has benefits like: rice allowance of 5,000 per quarter; uniform allowance of 8,000 per year; meal allowance of 70 pesos per day(she works 26 days a month); representation allowance of 8900 per month; communication allowance of 3,000 per month. The company pays 14' month pay @100% of her monthly pay and a 15* month pay which is 60% of her monthly pay. Given the above stated data,compute for her. a.Monthly take home pay. b.It was found that at the end of the year,Ms. Valentine has accumulated a total of 15 hours tardiness.With this data in mind,compute for her total income tax to be paid to the government considering both sources of income.Andres is an operator of taxi cabs. During a particular month, he purchased from Toyota, a VAT registered car dealer, 10 sedan type units for a total selling price of P5M. The estimated useful life of each vehicle is four years. How much will be the amount due from Andres?