Break-even point of the new product is 12,000 units a month. Fixed cost is 800,000 dollars a month and variable cost is 20 dollars per unit. Based on the information above, which of the following is a selling price of the new product?
Q: 2. A company is where the members guarantee the payment of certain (usually nominal) amounts if the…
A: An group of persons who donate money or money's worth to a common fund and use it for a purpose is…
Q: On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs.…
A: Introduction Recording day to day transactions and maintaining records of transactions in order to…
Q: On January 1, 2018, UE Realty Company sold property carried in inventory at a cost of P1,312,710 for…
A:
Q: The Blue Chip Co. prepared the following income statement for December 31, 2008 but neglected to…
A: Adjustment entries made at the end of accounting period or according to policy of company.…
Q: On August 1, 2019, XZY Corporation received subscription for 7,000 shares of Ordinary Share Capital…
A: Solution Shares represents ownership in a company . Persons who buy the shares in a company they…
Q: During 2020, Bramble Furniture Limited purchased a railway carload of wicker chairs. The…
A:
Q: During the year 2021, Bong Company was involved in a lawsuit. Bong was sued by an employee for…
A: According to principle of prudence the anticipated loss must be recognized immediately .
Q: Brown Company's salaried employees are paid biweekly. Occasionally, advances made to employees are…
A: Current liabilities: Liabilities that are due to be paid within one year or within one operating…
Q: On November 1, 2022, SAN JOSE receives an order from a customer for a computer as well as 12 months…
A: Unearned sales Revenue: Unearned sales Revenue means money received from the customer in advance for…
Q: Sunland Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per unit.…
A: The question is based on the concept of Cost Accounting. Weighted average cost is calculated by…
Q: I am confused on #36 of 3.3 in Finite Math for Business. My teacher wants me to find the interest…
A: If you have a TI-83 Plus or TI-84 Plus, press APPS and then 1:Finance. Once you are at the finance…
Q: If total assets increased by P175,000 during a specific period and liabilities decreased by P10,000…
A: The basic accounting equation is that assets is the sum of liabilities and equity. In other words,…
Q: 1. At what interest rate will a sum of money triple itself in 10 years time?
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Whispering Co. prepares monthly financial statements from a worksheet. Selected portions of the…
A: Adjusted trial balance is prepared after adjusting additional information. The adjusting and trees…
Q: seeking penalties settlement with state authorities to pay $1.6 million in pen 1 milion lawsuit…
A: Journal entries are those entries that are stated in the books of accounts of a company regarding…
Q: The total debit and credit balances of an Income Statement in the worksheet is P481,700 and…
A: A part of unearned rent has been earned during the period. Rent revenue will be transferred to the…
Q: On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT…
A: FOB Shipping Point Free on Board up to the shipping point is referred to as FOB Shipping Point.…
Q: Nahtan Company recorded the following transactions: (A). Purchase of building worth P700,000 by…
A: Rectification of errors :— When any error or mistakes is discovered then it should be suddenly…
Q: Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,469,000…
A: Calculation of Maximum depreciation expense:- OPTION:- $ 667,997 is the correct answer.…
Q: On January 1, 2021, Red Company leased equipment by signing a four-year lease. Annual rentals of…
A: Right-of-use equipment shall be measured at cost upon its initial recognition. And its Cost includes…
Q: The following selected transactions relate to liabilities of United Insulation Corporation. United's…
A: A Journal entry is a primary entry that records financial transactions initially. The transactions…
Q: What is the Goods amount finished in January? Including goods in process January 1st 63,500 units.…
A: Finished goods are the products which has been completed during the year. This includes opening work…
Q: The partnership agreement of X and Y provides that 12% interest per year is to be credited to each…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: Integrity Company uses standard costing for each specialized product. The following information is…
A: Material usage variance is a variance calculated in order to ascertain the quantity of material used…
Q: What amount shall be presented in the statement of financial position at December 31, 2021 as…
A: Under cost model investment property is measured at cost less accumulated depreciation. fair value…
Q: A mortgage service office has the following four activities involved in approving a loan application…
A: Activity No. of employees Time (minutes) A+D 2 24+37 =61 B+C 2 37+27= 64 as per above table…
Q: In Mordica Company, total material costs are $37,000, and total conversion costs are $57,000.…
A: The unit manufacturing cost is a combination of material cost per unit and conversion cost per unit.…
Q: ANSWER ALL REQUIREMENTS before 10:00 pm
A: Financial Statements - Financial Statements includes Income Statement, Statement of Retained…
Q: Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land…
A: Adjusted basis of assets received in exchange is fair market value of that asset minus deferred…
Q: Based on the following data, what is the amount of quick assets? Accounts payable $30,200…
A: Quick Assets - Quick Assets are the assets which can be converted into cash very quickly. Those…
Q: n January 1, 2021, Rapid Airlines issued $225 million of its 8% bonds for $207 million. The bonds…
A: Bond is a liability for the company n which a specified percentage of interest has to be paid until…
Q: On October 1, 2020, Geri, Elma and Philip who share earnings 5:3:2, respectively, decided to…
A: Introduction: According to the realization principle, revenue may only be recognized once the…
Q: On January 1, 2021, Poplar Fabricators Corporation agreed to grant its employees two weeks of…
A: Requirement 1. Since the 800 vacation weeks earned in 2021 were not taken during 2021, a salary…
Q: Equipment acquired on January 5, 2013, at a cost of $918,240, has an estimated useful life of 15…
A: Book Value of an Asset: The value of an asset as it appears on a company's balance sheet and…
Q: The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share, 2,000…
A: Preference Shares - Preference shares are those shares which carries preferential right over the…
Q: How much discount interest will there be if $12,500 is due at the end of 3 years with a 12% discount…
A: Concept of calculating the present value Calculation of Present Value Formula for Calculation of…
Q: 2) Based on company historical data, your masonry crew can achieve a productivity rate of 1 hours…
A: Labor Cost: The cost of labor is calculated by adding up all of the salary and benefits provided to…
Q: A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The…
A: Liquidation results in the permanent closure of a business. After this point, the liabilities no…
Q: Suppose this information is available for PepsiCo, Inc. for 2025, 2024, and 2023. (in millions)…
A: Days in Inventory - Days in Inventory ratios show the time required to sell the inventory lying in…
Q: Please answer with reason for all why the option is correct and why the other options are incorrect…
A:
Q: On July 1, 2021, Wildflower Corp. contracted to build an office for Heart, Inc. for a total contract…
A: Gross Profit An approach to calculating total product is called gross profit. The technique can be…
Q: Dawson Hair Stylists Adjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable…
A: The financial statements of the business are prepared using the adjusted trial balance. The income…
Q: If total assets increased by P175,000 during a specific period and liabilities decreased by P10,000…
A: Owners' equity is the amount of capital invested by the business owners in their entity. It is the…
Q: subscription default assuming 1,500 shares out of the 7,000 shares were unable to pay the last…
A: •Share holders a/c dr 2,31,000 To share capital a/c 2,31,000
Q: Blue Corp., provides a noncontributory defined-benefit pension plan for its employees. The company's…
A: Pension fund assets seem to be assets purchased with deposits to a pension plan for the sole…
Q: Gross purchases of Coleen Company amounts to P298,400. Purchase discounts amount to P3,560 and…
A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…
Q: Costs incurred during the year were as follows: January 1 - P400,000 April 1 - 500,000 August 1 -…
A: 10 % Specific Loan for 2 years for building = P800,000 Earned temporary interet = P12,000 General…
Q: An analysis of the firm’s current financial condition as indicated by an analysis of the most recent…
A: Financial plan - it is a document that summarize the current financial situation of the firm,…
Q: Required information Skip to question [The following information applies to the questions…
A: INCOME STATEMENT Income Statement is one of the Financial Statements of The Company which provides…
Q: Shipments received from home office are billed at 120% of cost. During the year, the branch…
A: Branch reported a loss based on the cost of billed price it acquired the goods on. True branch…
Break-even point of the new product is 12,000 units a month. Fixed cost is 800,000 dollars a month and variable cost is 20 dollars per unit. Based on the information above, which of the following is a selling price of the new product?
Note: Round off your answers to 2 decimal places. Do not write the unit anymore.
Step by step
Solved in 2 steps with 1 images
- 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.Marlin 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.
- 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 245,000Faldo 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
- 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?Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?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?
- Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.