Discuss the materiality concept. Is the dollar amount that is material the same for a company that has annual sales of $10,000 compared with a company that has annual sales of $1,000,000?

Q: on hand or too little?

A: Given: To explain the firm which has more or less inventory on hands as,

Q: A telephone company have a production capacity of 500,000 units per month. At its present capacity…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Suppose a firm produces tires using 1000000 worth of equipment that it owns, 200 workers that are…

A: Capital Stock : Capital Stock is the total of Common and Preferred shares.   Accounting Equation=…

Q: A firm sells a single product for ₱100 per unit. The firm’s fixed expenses total ₱500,000 per year.…

A: Selling price (P) = ₱100 Fixed cost (F) = ₱500000 Variable cost (V) = ₱40 Commission (C) = ₱5…

Q: If each sales rep earns a salary of €60,000 per year, whatsales are necessary to break even on the…

A: Break-Even Point: It refers to a point of production at which there is no profit no loss.

Q: A company has fixed costs of 100,000 and break-even sales of 800,000. What is its projected profit…

A: Business has $0 profit at the break-even sales.  At break even sales of $800,000 Sales = $800,000…

Q: The profit P, in thousand of dollars, that a manufacturer makes is a function of the number N of…

A: The break-even point is the production level where the costs of production and the revenues from…

Q: I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Frontier Corp. has a contribution margin of $1,458,000 and profit of $364,500. If sales increase…

A: Definition:   Gross Profit: Gross Profit is the difference between the net sales and the cost of…

Q: A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to…

A: Break-even is the point wherein the company is in a situation of no profit no loss.

Q: 1)How much is the total variable operating cost at 150,000 sales volume? 2)What is the volume of…

A: Total Variable Cost = Quantity Sold x Variable Cost Per Unit Break Even Volume (No Profit No Loss…

Q: As an operations management consultant, you have been asked to evaluate a furniture manufacturer's…

A: Cash to cash conversion cycle It measures the time span required for a company to convert its cash,…

Q: Marcus Corporation currently sells 150,000 units of products a year at a price of RM 4.00 per unit.…

A: The degree of operational leverage (DOL) is a ratio that determines how a company's operating income…

Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…

A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…

Q: Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as…

A: Number of units to be sold to earn an desired operating income  = (Fixed cost + Desired operating…

Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…

A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…

Q: (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of…

A: Contribution is usually defined as Sales minus the variable costs of an organization The degree of…

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: Calculate the ROI and calculate the Economic Profit.

A: Return on investment can be calculated with the formula ROI = Net IncomeInvestment=16,000100,000=…

Q: As an operations management consultant, you have been asked to evaluate a furniture manufacturer's…

A: The question is related to Cash Operating Cycle:- The cash operating cycle (also known as the…

Q: Your Corporation’s contribution margin ratio is 29% and it’s fixed monthly expenses are $17,000. If…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: he Rachel Company has sales of $820,000, and the break-even point in sales dollars is $672,400.…

A: Answer: Margin of Safety as a Percentage of Sales ((Current Sales - Break-Even Sales )/ Current…

Q: a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of…

A: Contribution Margin is  Sales minus Variable Cost and Contribution Margin Ratio is Contribution…

Q: Amalgamated Fenderdenter’s sales are $10 million. The company spends $3.5 million for purchase of…

A: As per the given data of sales and cost, the following computations are done.

Q: A plant operating at 100% capacity (1000 kg product per year) has an annual net profit of $40,000…

A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…

Q: What was Laraby Company's breakeven point in units last year? How many units of product would Laraby…

A:

Q: Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000…

A: The net income is calculated as difference between sales revenue and total costs.

Q: Frontier Corp. has a contribution margin of $648,000 and profit of $162,000. If sales increase 18%,…

A: In order to determine the percentage increase in profit, the degree of operating leverage is…

Q: A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000…

A: Target profit before tax = P24,000/(100%-40%) Target profit before tax = P24,000/60% Target profit…

Q: What is the company’s break-even point in sales dollars?

A: Contribution per unit = Selling price per unit - Variable cost per unit Break Even point ( units ) =…

Q: The annual profit P, of a small manufacturing firm is given as  P+100=Xsquared +15X where X is the…

A: P+ 100 =X^2 + 15X where P = profit X = no. of units Sold

Q: In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019,…

A: Profit Volume ratio used to analyze the change in print due to change in sales. It is calculated by…

Q: A certain firm has the capacity to produce 650,000 units of product per year. At present, it is…

A: Profit = Revenue-Expenses

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: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales…

A: Operating leverage is a ratio of how of change in sales effect the change in operating income. It…

Q: A company with fixed costs of P40,000 is now breaking even on sales of  P160,000. How much income…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: A firm sells 500,000 widgets at $40 each, the cost of the widgets is $25 each, expected general and…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Assume that next year, management wants the company to earn a minimum profit of $ 500,000. How many…

A: Desired Sales - Desired Sales (in Units) is the sales required to be made by the company to earned a…

Q: The selling of a product has been set at $300 per unit , and at that price the company expects to…

A: The calculation of target profit has been made as follows: Target profit=Total investment×Required…

Q: Simpson Corporation expects to sell the following number of units of their newest product:   Year…

A: Excel Spreadsheet:

Q: 1. Assuming that the fixed costs are expected to remain at 200,000 for the coming year and the sales…

A: Fixed costs are costs that do not change with change in level of activity, but total variable costs…

Q: 1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage…

A: Lets understand the meaning of margin of safety. Margin of safety is a sales over a break even…

Q: Cebu Tires and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At…

A: The sales volume refers to the quantity of merchandise and the break-even sales volume is the…

Q: Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and…

A: Incremental revenue, cost, and net income are the difference between alternative 1 and alternative…

Q: Brolin Company sells a single product. The product has a selling price of $50 per unit and variable…

A: Solution : Contribution margin ratio = 100% - variable cost ratio = 100% - 80% = 20%