During the last accounting period, Carla Vista Corporation sold 96000 units at $45 each. The variable cost per unit was $20 per unit. Fixed costs totaled $1100000. What is the company's degree of operating leverage? 1.80 0.57 1.85 0.46
Q: On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The amount…
Q: Select all the correct Tax Reduction Strategies
A: A tax strategies are the methods which is used by the taxpayers which are the authentic sources of…
Q: 15. Firm A has a total asset turnover ratio of 4.4, a net profit margin of 0.11, and return on…
A: Total Assets Turnover Ratio :— It is calculated by dividing net sales revenue by average total…
Q: iii. Accrued receptionist salary on September 30, $500 iv. Rent expired during September, $2,000. v.…
A: Adjusted Journal Entry A general ledger entry known as a "adjustment journal entry" is made at the…
Q: Requirement: Allocate the transaction price to the performance
A: Transaction price allocation is the allocation which are required to be made by the company on the…
Q: On January 1 of the current year, Talbert Services received $36,000 in advance of performing the…
A: Journal entry to record the advance receipt for the performance of services in future is recorded in…
Q: 1) Calculate the closing capital from the above information: Drawings: $20 000 opening capital: $100…
A: Closing Capital = Opening Capital - Net Loss - Drawings
Q: Ron Company has the following commission schedule: Commission rate 2% 3.5% 4% Calculate the gross…
A: Gross earnings are the profit earned by the individual. It can be calculated on the bases of sales…
Q: Net Operating Losses (LO 4.9) Julie, a single taxpayer, has completed her 2020 Schedule C and her…
A: Taxable income refers to the amount after deductions or exemptions that is used for the…
Q: Distinguish between internal documentation and external documentation as audit evidence and give…
A: Internal audit evidence are those evidence available within the organisation. External audit…
Q: Angie Pereira and Ferro Schwartz are employees of Free Star, Inc. In February 2025, Angie's gross…
A: The correct answer is option - a credit to FICA- OASDI taxes payable for $1729.80
Q: Oliver Company has acquired a used piece of equipment for $10,000 and paid transportation costs of…
A: When a PPE(Plant property and Equipment) is purchased, Its value is recorded at the cost which is…
Q: B16. 1.In order to encourage employees to “leave your car at home”, Jax Corporation wants to issue…
A: Normally Commuting expenses are not deductible for employees and employers but there are certain…
Q: In 2017 the voters of Solis City authorized the construction of a new swimming pool for a total cost…
A: The Debt Service Fund's main function is to keep track of the repayment of principle and interest on…
Q: Petro Ltd acquired 60% of Carlos Ltd's 500,000 R1 equity shares on 1st January 2019 for a…
A:
Q: 9. Darcy is age 20, a full-time student an Interest income of $1,000 and Divider (NUI) for purposes…
A: Unearned income refers to the sum value of money earned by an entity through investments interests,…
Q: 7 8 9 0 1 2 3 4 A 9 B Year 2014 2015 2016 2017 2018 Totals U D Actual Sales in Gallons Weight…
A: The company should estimate its future sales. Because of the forecast sales organizations know how…
Q: What is accounting?
A: ACCOUNTING Accounting is the process of recording Financial Transactions related to Business.…
Q: Compute 2 years of the following ratios from the financial statements below: A. Profit margin…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: Account Title Ch. remainder Believer. remainder Furniture 15.000 Damped Furniture 1.200…
A: Balance Sheet - The balance sheet's objective is to reveal the organization's current financial…
Q: Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and…
A: Predetermined Overhead Rate :— It is calculated by dividing total budgeted manufacturing overhead by…
Q: [The following information applies to the questions displayed below.] Naidu Companies is the world's…
A: The gain or loss on sale fixed assets is calculated on the basis of the book value of the fixed…
Q: The purpose of an audit trail is to be able to trace a transaction from its origin through source…
A: Introduction Audit Trail A systematic record describing the events and circumstances around a…
Q: QuickBooks Online uses which basis of accounting? Accrual Cash Both accrual and cash. Neither…
A: Solution: Quickbooks online is accounting software developed by Intuit. This software is mainly…
Q: The Verizon publishing company pays its salespeople a weekly salary plus a 2% commission on all net…
A: The question is based on the concept of Financial Accounting.
Q: per day with the following resources. Labor Raw material Energy a. What is the total productivity…
A:
Q: On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45…
A: When the company acquires another co. business, it's called the acquisition of a business. The…
Q: ● eBook Print Item Exercise 12-19 (Algorithmic) (LO. 3) Brennen sold a machine used in his business…
A: According to the popular wisdom, a taxpayer who makes a lot of money and utilizes numerous tax…
Q: 1SS 4. On January 1, 20x1, Patience Co. P2,000,000 convertible bonds at 105. Each P1,000 bond is…
A: A journal entry is used to record a commercial transaction in the accounting records of a…
Q: Prepare an income statement using the following data for Procurex Products Corporation for the year…
A: The income statement is the one prepared by the companies to determine the financial performance by…
Q: Sales in Gallons Year Magnificent Marvelous 2014 424,000 None 2015 425,000 None…
A: Sales Projection Using Exponential Smoothing A forecasting technique called exponential smoothing…
Q: Don Ho has the following sources of income and deductions: Net employment income 34,000 Property…
A: The money that a person or entity receives in exchange for providing an item or service, investing…
Q: Which of the following intercompany transactions would not require a worksheet elimination in the…
A: Intercompany transactions are those transactions which are made between the same group of companies.…
Q: ummer Company holds assets with a fair value of $126,000 and a book value of $95,000 and liabilities…
A: In order to determine the net assets value, the book value of the assets are required to be…
Q: Which of the following is an example of mandatory deduction?
A: Deductions are the amount of money which is made on the income or on the earnings of the employee…
Q: (1)Prepare an income statement for the year ended June 30, 2018, clearly showing the calculation of…
A: ANSWER:- 1. income statement for the year ended June 30, 2018.…
Q: Obj. 2 -BE 12-1 Dividends per share Zero Calories Company has 15,000 shares of cumulative preferred…
A: The dividend is a method of distributing profits among shareholders. The preference shareholders…
Q: A Plus Appliances sells dishwashers with a four-year warranty. In 2025, sales revenue for…
A: There are three key factors we need to know in order to evaluate a company's expense: Quantity of…
Q: Please provide me the solution with explanation of d,e,f and G
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…
A: A. Schedule I Partner Capital balance/loss allocation The maximum loss that can be absorbed…
Q: Gemilang Bhd has share capital of RM1 million in shares of 25 sen each. At 31 May 2022 shares had a…
A: The right shares are the shares which are issued to existing shareholders at a discount. The part…
Q: ! Required information Problem 1-24A (Algo) Service versus manufacturing companies LO 1-4 [The…
A: Income Statement Particular Amount($) Revenue 53700 Less: Cost or expenses 38700 Net Income…
Q: B17. Calculate the QBI deduction for Ned, who is filing single. His taxable income before any QBI…
A: Answer:- Taxable income meaning:- The amount of income used to determine how much tax is payable…
Q: One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began the…
A: Inventory Valuation Method - Inventory has been valued at two different methods. a. Perpetual…
Q: e sale of inventory items by a parent company to an affiliated company a. enters the consolidated…
A: The parents company normally sends goods to affiliated company and but both sales and profit are…
Q: 8 0:31:03 Nebraska Furniture Mart is a home furnishing store in North America. Nebraska Furniture…
A: Formula: Acid-test ratio=Total current assets-Inventory+Prepaid expensesTotal current liabilities
Q: Imagine Canada has decided to start trading with other countries. Once it allows trade with other…
A: Once it allows trade with other nations its economy is importing item will increased and exporting…
Q: sales Sales 100% 70% Fixed Costs Variable costs 33,000 Contibution Margin P 44,000 Net Income…
A: The contribution margin is calculated as difference between sales and variable costs. The operating…
Q: Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $2,300,000…
A: a. Total taxable income = income + dividend = 18,05,00,00 + 7,30,000 = 18,78,00,00 Note…
Q: Peggy is an executive for the Tan Furniture Manufacturing Company. The company paid for Peggy's…
A: Employer-provided parking is a "Qualified Transportation Fringe" that may be offered to staff…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.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?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?
- The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.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.Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales dollars is 323,000,000. Determine Jorgensen Companys margin of safety as a percent of current sales.
- Bethany Company has just completed the first month of producing a new product but has not yet shipped any of this product. The product incurred variable manufacturing costs of 5,000,000, fixed manufacturing costs of 2,000,000, variable marketing costs of 1,000,000, and fixed marketing costs of 3,000,000. Under the variable costing concept, the inventory value of the new product would be: a. 5,000,000. b. 6,000,000. c. 8,000,000. d. 11,000,000.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.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.
- 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?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.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.)