Columbus Industries makes a product that sells for $30 a unit. The product has a $22 per unit variable cost and total fixed costs of $8,800. At budgeted sales of 1,600 units, the margin of safety ratio is: Multiple Choice O OO 27.7% 36.7% 31.3% None of these choices are correct.
Q: esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then…
A: The direct Costs incurred are debited to work in process account. The indirect cost incurred is…
Q: The Adger Corporatio rvice company that mea res its output based on the number of cust mers ser…
A: Activity variance is the difference between the flexible budget and the planned budget. If the…
Q: On January 1, 2022, Blossom Company purchased the following two machines for use in its production…
A: Depreciation expense is the reduction in the value of asset due to its use, wear or tear. Journal…
Q: Blue Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Blue purchased…
A: Commercial organizations used journal entries to record their financial transactions in their…
Q: Swifty and Miller Manufacturing is trying to determine the equivalent units for conversion costs…
A: The Numerical has covered the concept of Equivalents Units for Conversion Cost. In the next step, we…
Q: Prepare the non-current asset note. Your note should include the cost, as adjusted for additions and…
A: Non-current assets are long-term assets that are expected to provide benefits to a company for more…
Q: The Steele Corporation has budgeted production for next year as follows: Production in units Quarter…
A: Direct materials budget is prepared after the production budget is prepared. This budget is prepared…
Q: Zebra Enterprises is in the business of manufacturing iron buckets. The firm is headquatered in…
A: Total working capital required = Raw materials + Work-in-progress + Finished goods + Credit allowed…
Q: Revision of depreciation A building with a cost of $240,000 has an estimated residual value of…
A: Depreciation is an asset account that distributes the cost of a physical item over the period of its…
Q: Garcia Company owns equipment that cost $78,400, with accumulated depreciation of $41,600. Record…
A: 1. The selling price over and above the book value will result in profit/gain for the entity. 2.…
Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Skysong, Inc. purchased a delivery truck for $30,000 on January 1, 2022. The truck has an expected…
A: The Depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Cheesesteak's Sandwich Shop had the following long-term asset balances as of January 1, 2024: Cost…
A: Answer:- Depreciation:- An asset loses value over time as a result of use, damage etc. Depreciation…
Q: Microsoft Corporation develops, produces, and markets a wide range of computer software including…
A: Particulars Amount ($ in million) A) Closing Allowance for Doubtful Debt 410 B) Add : Bad…
Q: please choose from the following accounts: Accounts Payable Accumulated Depreciation - Buildings…
A: A journal entry is a record of a business transaction in your business books. In double-entry…
Q: During Durton Company's first two years of operations, the company reported variable costing…
A: There are two methods of costing one is variable costing and other one is absorption costing. Under…
Q: PROBLEM 8-4 Casablanca, Inc. Shareholders' Equity section was presented below: Share Capital:…
A: Dividend - Dividend is the portion of the profit distributed to the shareholders. Equity…
Q: Accounting The Statement of Realization and Liquidation for NMCC Corporation is as follows: ▪Assets…
A: 1.To find the amount of Assets not realized, we can use the formula:Assets not realized = Assets to…
Q: Required information [The following information applies to the questions displayed below] On January…
A: Useful life is defined as the total period for which a resource can be used in the operations of a…
Q: On January 2, 2021, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for…
A: The investment income is recorded in the income statement for dividend revenue and income due to…
Q: Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing…
A: Activity-based costing is used to distribute the overhead. This method is used to allocate the…
Q: The KC Company developed the following standards for the manufacture of its product: • Each unit…
A: Direct labor is the amount of money incurred on the wages paid by the entity. These are wages paid…
Q: Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 820,000 common shares outstanding, after…
A: EPS stands for Earnings Per Share which states that how much amount the business makes for every…
Q: Harris Corporation has provided the following data concerning an investment project that it is…
A: Net present value: It implies a difference or a variance between the cash inflows and outflows from…
Q: AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years.…
A: The company needs to determine the demand for its product and service. According to the demand it is…
Q: Required information [The following information applies to the questions displayed below.] Helix…
A: If the company has spare capacity for production, then it can accept the special order if it leads…
Q: A) Record the 202X journal entries made by Frylock to account for the income/ dividends of Meat Wad…
A: Simple Equity Method : When the investor has significant influence(holds owner's stake 25% or more )…
Q: 10.1a With regards to the Springer's Lumber & Supply case presented in chapter 10, what deficiencies…
A: Enterprise Risk Management (ERM) is a process that enables organizations to identify and assess…
Q: Ernest works for a clothing manufacturer as a dress designer. During 2022, he travels to New York…
A: The total deduction is calculated by calculating the total expenses incurred for business purposes,…
Q: Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not…
A: Income statement - a statement that determines the financial status of the organization for a given…
Q: 3. Sales (19,500 units x $30 per unit). Variable expenses. Contribution margin Fixed expenses. Net…
A: Notes : Contribution Margin Ratio: The contribution margin ratio is the difference between a…
Q: Operating expenses $216,000 Prepare a condensed income statement for the year on both bases for…
A: Cost of good sold : Opening inventory + Purchase - (closing inventory) Cost of good sold = 5800 x…
Q: Question Content Area Cavy Company estimates that the factory overhead for the following year will…
A: Predetermined Overhead rate = Estimated overhead / Estimated machine hours Predetermined Overhead…
Q: Selected accounts from Ridley Company's adjusted trial balance for its December 31 year-end follow.…
A: Classified Balance sheet : Balance sheet shows assets,liabilities and capital of a company on a…
Q: This is a new manufacturing corporation that issued "$30000" common stock for cash on the first day.…
A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…
Q: Prepare the entries to record depreciation expense for the year ended December 31, 2023 using the…
A: Depreciation Exp $7,450.00 Accumulated Depreciation on Building $7,450.00…
Q: Securities Portfolio - Part B **Keep all calculations from this problem for Parts A, B & C** Herman…
A: Commercial organizations used journal entries to record their financial transactions in their…
Q: "Leased Liability":
A: Given Lease Term = 6 years Annual lease payment = $22740 Economic Life of asset =7 years Interest…
Q: Problem 8-3A (Algo) Asset cost allocation; straight-line depreciation LO C1 [The following…
A: The lump sum price paid to acquire different assets is allocated to different assets on the basis of…
Q: A Parent Company owns 100 percent of its Subsidiary. During 2021, the Parent company reports net…
A: Parent company is that company which has right to control other company. The other company is known…
Q: 1. Identify what type of investment the Yearling stock is for Staub. 2. Journalize the transactions…
A: Introduction:- Investment by Staub In Yearling is also termed as Investment in Associate Company as:…
Q: Compute cost of goods sold, assuming Sunland uses: (Round average cost per unit to 4 decimal places,…
A: Perpetual System LIFO Cost flow $195,700.00 Periodic System…
Q: Pina Construction Company uses the percentage-of-completion method of accounting. In 2020, Pina…
A: The journal entries are prepared to record the transactions on regular basis. The gross profit is…
Q: Foster Corporation is considering three investment projects: S, T, and U. Project S would require an…
A: Profitability index (PI) is a financial metric that measures the ratio of the present value of cash…
Q: A Prepare common size statement Gross sales Sales return Sales Discount Net sales Cos Selling…
A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…
Q: Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100…
A: Spending variance for utilities refers to the difference between the actual amount spent on…
Q: Gibson acquired 60 percent of Davis on April 1, 2021, for $549,600. On that date, equipment owned by…
A: A financial statement known as a consolidation statement is a collection of financial statements…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: To determine the financial advantage (disadvantage) of discontinuing the Linens department, firstly…
Q: ! Required information [The following information applies to the questions displayed below.] The…
A: A bank reconciliation is a process of matching the balances in an entity's accounting records for a…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Other expenses is a fixed cost and it will be same for budgeted customers and actual customers.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Jasmine Companys expected sales were 2,000 units at 100 per unit. During 20x1, it had actual sales of 1,800 units at 110 per unit. Budgeted variable costs were 60 per unit. What is Jasmines sales price variance? a. 8,000 (U) b. 20,000 (U) c. 18,000 (F) d. 2,000 (U)Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of safety?
- 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.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.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.
- 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.Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows: Management believes it can increase sales by 2,000 units for every $5 decrease in sales price. It also believes the additional sales will allow a decrease in direct material of $1 for each additional 2,000 units. Prepare a flexible budgeted income statement for 35,000-, 37,000-, and 39,000-unit sales.
- 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.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?Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
