Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.
Q: All the bonds in the following table have a face value of £100. Your client is thinking of issuing a…
A: Bond- Bonds are issued by the government or companies seeking to raise capital from the general…
Q: What about capitalized interest in 2022?
A:
Q: Use the following information for the next four (4) questions: On January 1, 2023, Flips Company is…
A: The shareholder's equity gets increased by issuance of shares, net income and decrease by net loss,…
Q: Fill in each of following T-accounts for Belle Co.'s seven transactions listed here. The T-accounts…
A: T - accounts:- It is the account that is prepared under a double accounting system where each entry…
Q: Calculate DOL, DOF, and DOT for both years. ANSWER 2020 2021
A: The following formulas are used to calculate various types of leverages:- 1. DOL=Sales-Variable…
Q: Compare and contrast the early historical accounting for postretirement health care and life…
A: Historical cost accounting is an important technique that records assets on a statement of financial…
Q: On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The…
A: When 40,000 shares with par value of P 100 per share are issued, share capital will increase by the…
Q: How do you find full absorption cost
A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…
Q: Olinick Corporation is considering a project that would require an investment of $289,000 and would…
A: Payback period is the period during which the initial investment in the project will be recovered…
Q: business like NetSolutions estimates customer refunds and allowances for each year’s sales that…
A: Customer refunds and allowances is a current liability as cash outflow will be required to settle…
Q: Required Information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing…
A: Financial Statements are useful for reporting and exhibiting a company's genuine and exact financial…
Q: HAT Company provided the following information for the 2018: Total Assets at December 31 4,500,000…
A: Debt-to-equity ratio = Total liability / Total shareholder's Equity Total Assets to equity = 100%…
Q: process outsourcing services. The following were the transactions of Entity A during the year. 1.…
A: Journal entries (JE) refers to the entries which records the event into original books of accounts…
Q: e following statements are correct regarding dividends component in the purchase price of shares?…
A: Explanation of concept Shares are the instrument which has been used by the company to get capital…
Q: At December 31, 2021, Azores Corp. had 20,000 shares of P1 par value treasury shares that had been…
A: Given data, Shares repurchased =20,000 Acquisition price per share =P12 Therefore, Acquisition cost…
Q: As a small financial analyst, you have been selected by a client to provide assistance in the…
A: Answer:- A Future Value of an annuity due is always greater than the Future Value of an ordinary…
Q: penses: S 27,000 40,000 ation 35,000 102,000 xed expenses ating income $128,000 ue of the project's…
A: Payback period calculates the time period within which a project recovers its initial investment.
Q: On January 1, 2021, Lakad purchase and retire 100,000 shares of its shares for P1,800,000.…
A: Solution Concept Treasury stock is the stock that is bough back by the company When the treasury…
Q: Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of…
A: Contribution= sales less variable cost
Q: An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures…
A: Noncurrent liabilities, regularly designed for lengthy liabilities or lengthy-time period debts, are…
Q: On 1 January 2018, Alyssa invested P1,000,000 to BDO’s 5 year, tax free time deposit. The long term…
A: Here discuss about the details of the final tax withhold for the interest income which are generated…
Q: Liam bought shares of stock of a publicly-listed domestic company in 1997 at a cost of P200,000. In…
A: The capital gain is the gain that is received by the company from selling the assets, land, and…
Q: The unadjusted trial balance is prepared
A: The financial statement is the representation of the financial data of the company. It is used by…
Q: At the beginning of current year, Axed Company was authorized to issue share capital of 100,000…
A: Balance of retained earnings at year-end will be Net income minus dividend declared
Q: In 2021, Mr. Crisanto Reyes, a Minimum Wage Earner, received the following from his employer:…
A: Republic Act No. 9504 states that Minumum wage earner are exempted from income tax
Q: The corporate charter of Diana Company authorizes the issuance of 500,000 ordinary shares with a P10…
A: The shareholder's equity tells about the total equity that belongs to the shareholders. It includes…
Q: Make an income statement
A: The income statement is prepared to identify the outcome of the operation, as it aids in determining…
Q: Calculate Net Cash Flow from Operating Activities of X Ltd. : (i) If X is a manufacturing business…
A: A company's net cash flow from operating operations reflects whether any additional monies entered…
Q: Liam Byrne borrowed Php 1,500,000 at 3% interest from Erik Torsten on July 1, 2022, the promissory…
A: Lets understand the basics. Interest expense is a expense which is payable on the borrowing. When…
Q: effects of cash restriction regulations on management of customer banking practices
A: In evaluation to unrestricted cash, restricted cash isn't freely on hand for a company to spend or…
Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $852,000 by paying $284,000 down…
A: A company's interest expense indicates the cost of borrowing. Interest expense is a semi-item on the…
Q: PA2-3 (Algo) Part 4 4. Summarize the journal entry effects from part 3 using T-accounts. Use the…
A: Journal is a financial book in which all business transactions are recorded when they occur. All…
Q: Pastina Company sells various types of pasta to grocery chains as private label brands. The…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Which of the following items is required by the Life Insurance and Annuity Replacement Rule? A. A…
A: The item that is required by the life insurance and the annuity replacement rule is a comparative…
Q: Which of the following tax credits can not be transferred to a spouse? The age credits The…
A: As per the guidelines, only one question is allowed to be answered. Please resubmit the questions…
Q: The Director of Insurance has the power to. make reasonable insurance rules and regulations…
A: Insurance means a contract between two parties in which one party bears the risk of the other party…
Q: xplain whether the following statements is true or false In the Solow model, it is poss
A: If the savings rate would increase but the output per-worker is increased by more than the increase…
Q: Ross is single with an adjusted gross income of $68,100, and he uses the standard deduction for…
A: Income tax: It implies to a financial levy or charge that is imposed on the income of taxpayer by…
Q: Expenses are the cost of providing goods and services and result in: A.increased assets or…
A: Expenses are the cost that involves the outflow of resources (assets), which means assets will be…
Q: Which of Graeter’s stakeholders are most affected by the family’s decision to take a long-term view…
A: The explanation as,
Q: Answer the following: a. The Annual Worth of Alternative A is = $ Blank 1 b. The Annual Worth of…
A:
Q: Bramble Company uses a flexible budget for manufacturing overhead based on direct labor hours.…
A: Flexible budget is the statement including both the estimated variable and fixed costs.
Q: Determine the net income or net loss for October.
A: Net income (NI), often known as net profits, is calculated by subtracting revenue from production…
Q: Crane Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales…
A: The budget is prepared to estimate the budgeted sales and production requirements for the future…
Q: When a customer uses a credit card such as MasterCard or VISA to buy merchandise in a store, the…
A: Solution: When a customer pays for purchase using credit card, it is a cash sales for the seller as…
Q: ens JunctionDirect Materials Budget for SolutionFor the Two Months Ending February 28, 20XX…
A: The direct labor budget is used to compute the number of work hours required to create the items…
Q: The following are the account balances for Facci Company on December 31. Assume all accounts have…
A: TB stands for Trial balance refers to the worksheet of bookkeeping under which all the balance of…
Q: rates in order for immunization techniques using modified duration and convexity to be successful?
A:
Q: Prepare a summary of total cost variances and total sales variances. Identify possible…
A: Total sales variance is the variance which has been computed by the company in which it is…
Q: Prepare the income statement for 2021 and a balance sheet as of December 31, 2021.
A: The income statement represents the net income or net loss that is calculated by deducting the…
Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for 100 per case. There is a selling commission of 20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. 0.02 2.00 Natural oils Variable 30ozs. 0.30 9.00 Bottle (8-OZ-) Variable 12 bottles 0.50 6.00 17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. 18.00 6.00 Filling Variable 5 14.40 1.2 25 min. 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 19,560 Part ABreak-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Month Case Production Utility Total Cost January 500 600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1,025 705 Instructions 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2. Determine the contribution margin per ease. 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month. Part BAugust Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at 100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Cases Cost Estimated finished goods inventory, August 1 300 12,000 Desired finished goods inventory, August 31 175 7,000 Materials Inventory: Cream Base (ozs.) Oils (ozs.) Bottles (bottles) Estimated materials inventory, August 1 250 290 600 Desired materials inventory, August 31 1,000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in tile cost per unit or estimated units per case operating data from January. Instructions 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. 7. Prepare the August direct labor budget. Round the hours required for production to the nearest hour. 8. Prepare the August factory overhead budget. 9. Prepare the August budgeted income statement, including selling expenses. Part CAugust Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the Beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Actual Direct Materials Quantity per Case Cream base 0.016 per oz. 102 ozs. Natural oils 0.32 per oz. 31 ozs. Bottle (8 oz.) 0.42 per bottle 12.5 bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing 18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead 305.00 Normal volume 1,600 cases The prices of the materials were different than .standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rale to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less titan standard. Instructions 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest hour. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,250 cases of production used in the budgets for parts (6) and (7)?Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $450 and has per-unit variable costs of $200 associated with its production. The company has fixed expenses of $40,000 per month. In May, the company sold 225 of the Bomber model bikes. A. Calculate the contribution margin per unit for the Bomber. B. Calculate the contribution margin ratio of the Bomber. C. Prepare a contribution margin income statement for the month of May.
- Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.Olin Company manufactures and distributes carpentry tools. Production of the tools is in the mature portion of the product life cycle. Olin has a sales force of 20. Salespeople are paid a commission of 7 percent of sales, plus expenses of 35 per day for days spent on the road away from home, plus 0.50 per mile. They deliver products in addition to making the sales, and each salesperson is required to own a truck suitable for making deliveries. For the coming quarter, Olin estimates the following: On average, a salesperson travels 6,000 miles per quarter and spends 38 days on the road. The fixed marketing and administrative expenses total 400,000 per quarter. Required: 1. Prepare an income statement for Olin Company for the next quarter. 2. Suppose that a large hardware chain, MegaHardware, Inc., wants Olin Company to produce its new SuperTool line. This would require Olin Company to sell 80 percent of total output to the chain. The tools will be imprinted with the SuperTool brand, requiring Olin to purchase new equipment, use somewhat different materials, and reconfigure the production line. Olins industrial engineers estimate that cost of goods sold for the SuperTool line would increase by 15 percent. No sales commission would be incurred, and MegaHardware would link Olin to its EDI system. This would require an annual cost of 100,000 on the part of Olin. MegaHardware would pay shipping. As a result, the sales force would shrink by 80 percent. Should Olin accept MegaHardwares offer? Support your answer with appropriate calculations.Bold Rapid produces a competitive brand of shoes and sells them to retailers for $225 per pair. The cost per pair is $185 based on an annual volume of 5,000 pairs. Direct labour ($75 per pair) 375,000 Direct materials ($60 per pair) 300,000 Overhead Fixed 100,000 Variable ($0.40 per direct labour dollar) 150,000 250,000 Total costs 925,000 Annual output 5,000 Cost per pair $185 Shoes kingdom, a discount footwear store, currently purchased 500 pairs of shoes from Bold Rapid. Shoes kingdom has asked to purchase 1,000 pairs of shoes under a private label, at a price of $200 per pair. The shoes would be identical to those normally sold for $225. Bold Rapid believes that if it accepts the order, Shoes kingdom will cancel its usual order of 500 pairs. These sales cannot be recouped elsewhere. It this special order is accepted, the direct labour hours for the additional 500 shoes would have to be paid…
- Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019: Latex FeatherAnnual sales (in pairs) 12,000 8,000 Selling price £30 £30Variable costs per pair:Materials £12 £12 Labour-machining(£8/hr) £2 £2 -assembly(£7) £2.50 £2.50 -packing (£6/hr) £0.30 £0.30Variable overhead £0.20 £0.20 Annual total fixed costs are currently…Jack’s Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Jack a $50 processing cost per order, and Jack incurs a carrying cost of $240 per year including storing each GoKart at a local warehouse. What is the economic order quantity for ordering materials?a. 100b. 1,000c. 2,000d. 10,000Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 50,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $52 $15 Unit variable cost $12 $9 Direct fixed cost $25,200 $48,000 Common fixed selling and administrative expenses total $78,000.See screenshots
- A company sells two products with information as follows: A B Sales price per unit $11.00 $20.00 Variable cost per unit $10.00 $12.00 The products are machine made. Four units of product A can be made with one machine hour, and two units of product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. The company can sell up to 17,000 units of product A per month and up to 3,000 units of product B for the month. What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints? A. $17,000 B. $6,000 C. $30,000 D. $24,000Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban GreengrowSelling price per unit . . . . . . . . . . . . . . . . . . . . . . . $6.00 $7.50Variable expenses per unit . . . . . . . . . . . . . . . . . . $2.40 $5.25Traceable fixed expenses per year . . . . . . . . . . . . $45,000 $21,000 Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow.Required:Prepare a contribution format income statement segmented by product lines.Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two categories according to the type of wood used in the tables, as follows: Product type Kahikatea Rimu Sales price $2,000 $1,200 Costs $1,200 $520 Sales commission $100 $60 Seventy percent (70%) of the shop's sales are rimu tables. The shop's annual fixed costs are $161,000. What is the shop's breakeven sales revenue in dollars?