Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,400 and the variable cost per cup of coffee served is $0.33. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2
Q: The 2024 Income statement of Adrian Express reports sales of $19,510,000, cost of goods sold of…
A: The ratio is used to evaluate the firm's financial situation and helps management in making…
Q: Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $17 per…
A: A special order is a unique and non-recurring sales opportunity that falls outside the company's…
Q: Po16
A: The liquidity ratios include working capital, current ratio and acid test ratio. The current ratio…
Q: Required: Prepare a schedule translating the December 31, 20x1, trial balance from Swiss francs to…
A: Translation from one Functional currency to another currency that is to report the balance in that…
Q: Burrito Burro has been operating two take-outs burrito restaurants and two food trucks in Miami for…
A: Fixed costs are those costs which will not change with change in activity level. Variable costs…
Q: Blossom Company has sales of $1,664,000 for the first quarter of 2022. In making the sales, the…
A: Under CVP income statement, Contribution margin is calculated as (Sales - Variable cost)Net…
Q: ces Exercise 12A-1 (Algo) Basic Present Value Concepts [LO12-7] Annual cash inflows that will arise…
A: Time value of money is a concept that says “Value of money in present day is greater than the value…
Q: The Toso Company uses the retail inventory method. The following information is available for the…
A: Ending inventory is the amount of inventory in hand at the end of the period. It is reported on the…
Q: which of the following expenses is properly reported on commissions and fees line of Schedule C…
A: Schedule C is a tax form used throughout the United States by self-employed individuals, sole…
Q: I'm having a hard time completing the income statement and balance sheet below. Some of the answers,…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: Bonita Company's standard labour cost of producing one unit of product DD is 4 hours at the rate of…
A: The variance is the difference between the actual and standard production data. The variance can be…
Q: Tony Stark and Company has projected sales and production in units for the second quarter of the…
A: The cash receipts schedule and cash disbursement schedule are prepared to estimate the cash receipts…
Q: 00 The Mighty Music Company produces and sells a desktop speaker for $170. The company has the…
A: Unit level costs are incurred on each additional unit produced in company. This is also known as…
Q: roduer Aquatics manufactures swimming pool equipment. Broduer estimates total manufacturing overhead…
A: The overhead is applied to the production on the basis of a pre-determined overhead rate. The…
Q: Raw materials inventory, beginning Raw materials inventory, ending Work in process inventory,…
A: Cost of goods manufactured is the cost incurred to manufacturing a product.It consists of direct…
Q: The general ledger of AXM, Inc., provides the following information relating to purchases of…
A: Cost of goods sold: it is the cost of the goods that are sold by the companyCost of goods purchased:…
Q: -If the resident is non-Iraqi, he shall be granted the allowance he deserves for the year of income…
A: Residential status refers to an individual's tax or legal classification based on their physical…
Q: Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and…
A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio.The…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game…
A: LIFO Method :— It is one of the methods of inventory valuation in which it is assumed that recent or…
Q: Marigold Company was organized on January 1. During the first year of operations, the following…
A: The cost incurred on the capital asset is generally capitalized, which means these costs are added…
Q: On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common…
A: As per dual concept of accounting, every transaction has dual impact on the books of…
Q: From the data: May 2 - On sale to the public Purchase price, VAT not included…
A: Value Added Tax is referred to as VAT. The value contributed to goods and services at each level of…
Q: Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information…
A: Indirect expenses are the costs that cannot be directly assigned to a product or department. They…
Q: Monachino Corporation has found that 80% of its sales in any given month are credit sales, while the…
A: Cash collections means the amount of money collected by the entity from the cash sales and credit…
Q: SP 19 Serial Problem Business Solutions (Static) LO P2 Santana Rey expects sales of Business…
A: ABSORPTION COSTINGAbsorption Costing is a Cost managerial Accounting method in which All Cost…
Q: Company X began August with 70 units of iron inventory that cost $25 each. During August, the…
A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…
Q: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned…
A: Calculation of the Activity Rate Activity Rate=Cost Total Activity Material…
Q: True or False: A secured creditor who wishes to perfect his interest by filing must file a financing…
A: Secured credit refers to the lender or creditor who has offered the credit product which is backed…
Q: On November 10 of the current year, Flores Mills sold carpet to a customer for $7,900 with credit…
A: The company makes sales for cash and sales on account as well. The company making sales on account…
Q: the following financial statements Assets Cash STREAMLINE INCORPORATED Comparative Balance Sheets…
A: One of the three crucial financial statements that firms employ to provide customers with a complete…
Q: Current Attempt in Progress At January 1, 2020 Sweet Company's outstanding shares included the…
A: Earning per share (EPS) refers to the amount of the form of financial measure that depicts the…
Q: Assume that the payroll records of Bramble Oil Company provided the following information for the…
A: Payroll liabilities are salaries and wages, employee benefits and payroll taxes levied on the…
Q: 4. A company made the following purchases during the year: Jan. 10 Mar. 15 Apr. 25 July 30 Oct. 10…
A: FIFO,LIFO,Weighted Average cost method, Specific Identification etc are important methods of valuing…
Q: Lemon, Lime, and Orange, three cash method, calendar year individuals, form Starburst General…
A: Partnership basis is the amount that each partner has invested in the partnership. It is used to…
Q: A company purchased a piece of equipment for $50,000 on January 1, 2022. The equipment has an…
A: Depreciation is the reduction in value of asset over the period of time. Under straight line method,…
Q: Corporation's December 31, balance sheet showed the following: 7% preferred stock, $20 par value,…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Jose and Christina are partners sharing profits and losses with a ratio of 3/5 and 2/5 respectively;…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: Long Corp appropriately uses the installment-sales method of accounting to recognize income in its…
A: Answer:- Gross profit:- Gross profit is computed after deducting the cost of goods sold from the…
Q: The Consumer Division of Lewandowski Company has income from operations of $82,740 and assets of…
A: Solution:Residual income = Operating income - (Cost of capital * Operating assets)…
Q: On April 1, a company declared a cash dividend of $0.13 per common share to the shareholders of…
A: Dvidend is a corporate action taken by the organization to declare and pay part of the profit…
Q: Compute the rate charged per hour of labor. Labor rate $ per hour
A: The labor rate is a rate, Based on this rate a company or a employer pays money to an employee for…
Q: From a financial accounting perspective, the main purposes of a system of internal control are to…
A: Internal controlInternal control is the control system and process which is effected by the…
Q: 2 Trez Company began operations this year. During this year, the company produced 100,000 units and…
A: Income statement :— It is one of the financial statements that shows profitability, total revenue…
Q: Barrington Box Enterprises has two divisions, large and small, that share the common costs of the…
A: Allocation of Costs:Cost allocation is a way of giving alleviation to shared assistance…
Q: 4. Prepare a detailed overhead variance report that shows the variances for individual items of…
A: For costing purposes, a variance is a deviation /difference between the budgeted results and the…
Q: Reyes earns purely compensation income for the year 2021 with an annual basic salary of…
A: Taxable income can be defined as those income derived from all necessary adjustments and deductions…
Q: Prepare the necessary governmental fund and government-wide journal entries, assuming a December 31,…
A: Government fund financial statements:These are the financial statements for governmental funds which…
Q: Which of the following is the least practical reason for allocating service department costs to user…
A: Allocating service department costs refers to the process of distributing or assigning the indirect…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The net income is calculated as difference between the revenue and expenses. The net income under…
Q: Alan Marshall is preparing his balance sheet and income statement for the month ended July 31, 2021.…
A: Accounting equation is fundamental concept being used in accounting. It says that total assets must…
Please help me
Step by step
Solved in 3 steps
- Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?
- 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?Bienestar, Inc., has two plants that manufacture a line of wheelchairs. One is located in Kansas City, and the other in Tulsa. Each plant is set up as a profit center. During the past year, both plants sold their tilt wheelchair model for 1,620. Sales volume averages 20,000 units per year in each plant. Recently, the Kansas City plant reduced the price of the tilt model to 1,440. Discussion with the Kansas City manager revealed that the price reduction was possible because the plant had reduced its manufacturing and selling costs by reducing what was called non-value-added costs. The Kansas City manufacturing and selling costs for the tilt model were 1,260 per unit. The Kansas City manager offered to loan the Tulsa plant his cost accounting manager to help it achieve similar results. The Tulsa plant manager readily agreed, knowing that his plant must keep pacenot only with the Kansas City plant but also with competitors. A local competitor had also reduced its price on a similar model, and Tulsas marketing manager had indicated that the price must be matched or sales would drop dramatically. In fact, the marketing manager suggested that if the price were dropped to 1,404 by the end of the year, the plant could expand its share of the market by 20 percent. The plant manager agreed but insisted that the current profit per unit must be maintained. He also wants to know if the plant can at least match the 1,260 per-unit cost of the Kansas City plant and if the plant can achieve the cost reduction using the approach of the Kansas City plant. The plant controller and the Kansas City cost accounting manager have assembled the following data for the most recent year. The actual cost of inputs, their value-added (ideal) quantity levels, and the actual quantity levels are provided (for production of 20,000 units). Assume there is no difference between actual prices of activity units and standard prices. Required: 1. Calculate the target cost for expanding the Tulsa plants market share by 20 percent, assuming that the per-unit profitability is maintained as requested by the plant manager. 2. Calculate the non-value-added cost per unit. Assuming that non-value-added costs can be reduced to zero, can the Tulsa plant match the Kansas City per-unit cost? Can the target cost for expanding market share be achieved? What actions would you take if you were the plant manager? 3. Describe the role that benchmarking played in the effort of the Tulsa plant to protect and improve its competitive position.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.
- Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.Required:1. Fill in the following table with your estimates of the company’s total cost and average cost per cup of coffee at the indicated levels of activity. Round off the average cost per cup of coffee to the nearest tenth of a cent. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Explain.Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $0.26. Required: Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent. Cups of Coffee Served in a Week 1,800 1,900 2,000 Fixed cost . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? ? Variable cost . . . . . . . . . . . . . . . . . . . . . . . . ? ? ? Total cost . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? ? Average cost per cup of coffee served . . . ? ? ? Does the average cost per cup of coffee served increase, decrease, or remain the same as the number…Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22. Required: Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases?
- Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,400 and the variable cost per cup of coffee served is $0.54. 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,000 1,100 1,200 Fixed cost Variable cost Total cost $0 $0 $0 Average cost per cup of coffee servedJim Operates a number of coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,700 and the variable cost per cup of coffee served is $0.34. If the coffee stand increases sales from 1,200 cups per week to 1,400 cups per week what will be the expected change in cost per cup served? A ($68.00) B $68.00 C ($0.20) D $0.20Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weeklyexpense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.Required:1. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicatedlevels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent.Cups of Coffee Served in a Week2,000 2,100 2,200Fixed cost ........................................................ ? ? ?Variable cost ................................................... ? ? ?Total costs ....................................................... ? ? ?Average cost per cup of coffee served ........... ? ? ?2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the numberof cups of coffee served in a week increases? Explain.