Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by: Multiple Choice 60%. 1%. 6%. 25%.
Q: Accounts Payable (A/P) are: Amounts totaling the net worth of a company Amounts paid to owners…
A: Accounts payable refers to the sums owed to suppliers for products or services that were purchased…
Q: Accounting True or False/ Why: Companies that sell on open-account to reputable customers can…
A: Account Receivables: It refers to the account of the customers that are unpaid. In simple words it…
Q: Acquired Company (in thousands) Lancope, Inc Technology Useful life (in years) Amount $79,000…
A: Non-identifiable intangible assets are intangible assets that cannot be identified as belonging to a…
Q: McIlhenny Company McIlhenny Company adds material at the start of production. The following…
A: Equivalent Unit - This is the concept which is used in process costing. Under this concept few units…
Q: WCC Corporation has a $145,000 net operating loss carryover to 2022 from a previous year. Assume…
A: Net operating loss (NOL) is an excess of deductions (for expenses from the operation of a…
Q: Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Tree Seedlings has the following current-year purchases and sales for its only product. Date…
A: Last-In, First-Out (LIFO): Accounting for inventory using the "last in, first out" (LIFO) technique…
Q: Problem 9-6 (IFRS) Purple Company has correctly classified the packaging operation as a disposal…
A: Lets understand the basics. As per IFRS 5 "Non current asset held for sale", discontinued operation…
Q: Which financial statement reports an organization's financial position at a single point in time?…
A: The company prepares financial reports to show the results of business activities. The final report…
Q: aving conducted the ethics audit, identify the formal and informal systems that are in need of…
A: An ethical audit seems to be a system or procedure examination or evaluation to guarantee conformity…
Q: Ries, Bax, and Thomas invested $28,000, $44,000, and $52,000, respectively, in a partnership. During…
A: Closing entries are recorded in the books in order to close the temporary accounts like revenues,…
Q: What was Vigor’s gross profit for 20X1? Suppose that there are 360 business days in the year. What…
A: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: On January 1, 2020 Company A leases a machine from B Corp through a contract that requires 5…
A: Finance Lease is a lease which contains the following, if any one of following is satisfied then…
Q: Vito Yarwood practices medicine under the business title Vito Yarwood, M.D. During July, the medical…
A: JOURNAL ENTRY Journal entry is the Process of Recording Financial & Non Financial…
Q: Castle TV, Inc. purchased 1,000 monitors on 5 January at a per-unit cost of $185, and another 1,000…
A: Answer: B. 41500 Calculation of cost of closing inventory: Particulars Units Cost Cost Per Unit…
Q: Presented below is information related to Anderson Company for 2022. Sales revenue…
A: According to the given question, we are required to prepare the income statement for the year ending…
Q: Beginning inventory, purchases, and sales data for DVD players are as follows: Date Line Item…
A:
Q: Determine the following using the First-In First-Out (FIFO) method of process costing 1.…
A: Process Costing - A process costing system is the technique used to gather and apply production…
Q: Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on…
A: The equity method is applied when a company's ownership interest in another company is valued at…
Q: Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. Sales…
A: A joint cost seems to be spending that helps in the production of more than a single item and where…
Q: 03) Which of the following journal entry formats is appropriate under the equity method of…
A: Lets understand the basics. Equity method used by the entity generally when one entity holds between…
Q: The table below shows the types of defects and their frequency in plastic bottles for motor oil in…
A: Pareto Analysis is based on the idea that 80% of the problems can be traced to 20% of the causes.…
Q: Novak Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as…
A: The question is based on the concept of cash flow statement. Cash flow statement is a statement that…
Q: Philippine Accounting standard The following information was provided for Macy company. The purpose…
A: Income Statement An income statement is a type of financial statement that reveals the profitability…
Q: f $500,000 and all of his income comes from dividends. Karl files as a single tax payer. What is the…
A: Taxable income refers to the income on which the authoritative government levies a mandatory charge…
Q: Gall Schneewels is a nurse at Central City Hospital. She is paid $32.87 per hour and has a 40-hour…
A: Gross pay of the employee includes the normal pay and overtime pay. Overtime pay is the extra…
Q: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or…
A: An intangible asset is one that lacks a physical form. Intangible assets include goodwill, brand…
Q: 7. Information below relates to Salih and Yaakob for a week. Salih Description Hours worked 30 hours…
A: The company pay wages to employee however it has the choice of which method to use to determine the…
Q: Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments…
A: The direct method of allocation is used to allocate the cost of the service department is allocated…
Q: Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 – Renwick…
A: The question is asked to prepare the journal entries with respect to the financial information. Net…
Q: Requirement 5. Journalize the adjusting entries using the adjustment data. Post adjusting entries to…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: The following were selected from among the transactions completed by Babcock Company during November…
A: Preparing journal is the most important step in the accounting aspect. Every journal has double…
Q: An employer in the U.S. Virgin Islands employs two individuals, whose taxable earnings to date…
A: FUTA refers to the Federal Unemployment Tax Act which states that every employer requires to pay 6%…
Q: down credit card 3. For Which credit card did you pay?, select 2100 VISA Credit Card 4. For How much…
A: Credit card is the facility given by bank to pay the expenses without having money in the bank…
Q: PROOF Cash Supplies Prepaid Insurance Equipment $ 4 % 5 6 21 & 7 # x 8 Accounts Payable Capital…
A: Accounting equation is the basis of double entry system of book keeping which shows that every…
Q: Which of the following profit sharing allocation options provides for a combination of age and…
A: Answer:- Profit sharing allocation meaning:- A profit sharing allocation plan is a defined…
Q: A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Chapter 7: Applying Excel…
A: Consumer margin is calculated using Activity based costing system. Product margin is calculated…
Q: QUESTION 15 What is the effective semi-annual interest rate considering an APR of 8% compounded…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: s discounted at 10% was $53,553. The lease includes seven annual payments of $10,000. which expires…
A: Interest income is income recognized by the lessor . The lessor earns the income leasing his asset…
Q: 01) Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date…
A: When one company buys another, the intangible asset known as goodwill is acquired. It denotes a…
Q: What are the journal entries for rodney inc
A: Lets understand the basics. When notes receivable against the services provided and it it having…
Q: answers
A:
Q: Name: Section: roblem 5-1-OverPriced Jeans, Inc. Closing Entries for February Beg. Balance Feb 01…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: what is the present value of the capital allowance tax benefits (to the nearest £1,000)
A: Given in the question: Machine Cost £8,00,000 Residual Value £25,000 Total Life in…
Q: Mercury Company’s unadjusted book balance at September 30 is $722. If the company's accountant…
A: The rule of correcting the cash balnace state that if you add more then you should deduct the excess…
Q: ded that he could not get a better price from and motify Ted that he was entitled to a…
A: Gross income refers to the sum value of money gained by an entity such as wages, dividends, income,…
Q: Payment of loans: Calculate the value of the monthly payments for a loan of ¢300,000.00 in a credit…
A: Monthly Installments - - It includes a portion of principle payment along with Interest. Monthly…
Q: Hw.57.
A: Solution: Trial balance: BONITA…
Q: Assume a class needs to pay all expenses. The instructor cost $3,000 with an additional…
A: As per the guidelines, the solution to the first question is solved below. For obtaining answers to…
Q: For the current year ended March 31, Cosgrove Company expects fixed costs of $27,600,000, a unit…
A: Break even sales: Break even sales is the point where contribution margin is equal to the fixed…
Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by:
-
60%.
-
1%.
-
6%.
-
25%.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.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?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?
- 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 245,000Suppose 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.Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month of June. Marcus expects sales volume to increase by 10% in July. What are the degree of operating leverage and the expected percent change in income for Macom Manufacturing? 0.4 and 10% 2.5 and 10% 2.5 and 25% 5.0 and 50%
- 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.)If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7If 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
- Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 94,000 Net operating income $ 86,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the new net operating income is: Multiple Choice $86,375. $63,400. $72,125. $70,525.Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $64000 b.) the break-even point is 8,077 units c.) the total variable expense = 74000 d.) the total contribution margin = $126000
