firm has fixed cost of $50,000 per month and variable manufacturing costs of $1.25 per unit. They sell their units for $3.25 each. What is the annual sales volume units required to break even? Multiple Choice 300,000 30,000 10,400 2.500
Q: Disk City, Incorporated, is a retailer for digital video disks. The projected net income for the…
A: CVP analysis includes concept of break even point, break even point is the point of sale where there…
Q: Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the…
A: TOTAL COSTTotal Cost is the cost which are ncurred to manufacturing a product.Total Cost Includes…
Q: A company manufactures video surveillance systems for single-family homes. Three systems are…
A: For Gwk: 80 units * €6,500 per unit = €520,000For Kd: 120 units * €6,000 per unit = €720,000For KdR:…
Q: A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) $…
A: CVP analysis is used to identify the changes in costs and volume that affect a company's operating…
Q: Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Stuart Company is considering adding a new product. The cost accountant has provided the following…
A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The break…
Q: Please explain why solvency ratios, such as, debt, debt/equity, and time interest earned ratios are…
A: Solvency ratios, in simple terms, are like financial measuring sticks used to assess how financially…
Q: KORVER SUPPLY COMPANY Balance Sheet At December 31, 2023 Assets Cash Accounts receivable Inventory…
A: The balance sheet is prepared at the end of the year to report the assets owned, shareholders'…
Q: 3. At the end of the next two years, Lee Delivery Company reported the following amounts on its…
A: Current Ratio is a financial ratio that indicates ability of the entity to settle it's short-term…
Q: E18-26 (L03) (Warranty Arrangement) On January 2, 2017, Grando Company sells production equipment to…
A: Journal means the book of prime entry where all entries are recorded in different pages.Ledger means…
Q: As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of…
A: As per concept of accounting, the assets are equal to the sum of the liabilities and stockholders'…
Q: 2. Prepare an income statement and balance sheet as of December 31, 2021, for the ACME Mfg. Co Cash…
A: Balance sheet is one of the financial statements that shows list of final ending balances of assets,…
Q: bob is single and his tax rates are 10% on the first $8375 of taxable income 15% of the amount over…
A: Income tax liability is the total amount of income tax that is owed by the individual, corporation…
Q: P2-19 Investments Carried at Fair Value and Equity Method Gant Company purchased 20 percent of the…
A: The accounting approach of treating investments in affiliated corporations is known as the equity…
Q: Account 2.0 A sale of $151 to Mr. A had been posted correctly to the personal account but entered in…
A: The journal entries are prepared to record the transactions on regular basis. The suspense account…
Q: Net sales Cost of products sold Gross margin 2020 $ 8,691 5,692 $ 2,999 (In millions) 2019 $ 8,107…
A: GROSS PROFIT RATIOGross Profit Ratio is the ratio between Gross Profit & Net Sales Revenue.…
Q: Based on the following transactions, answer the following questions. i. ii. iii. iv. V. vi. vii. (a)…
A: Under the cash basis of accounting all the revenue is considered only at the time of receipt of…
Q: Matching Concept: Expenses & Revenues How does sales salaries expense directly relate to revenue?…
A: The sum of all wages paid to workers by a business, including base pay and any fresh gratuities…
Q: The Polaris Company uses a job-order costing system. The following transactions occurred in October:…
A: Job order costing is a cost accounting system used by businesses to track the costs associated with…
Q: Prepare a single-step income statement. AYAYAI WHOLESALE INC. Income Statement (Single-step) LA SA
A: Financial statements are those statements which are prepared at the end of accounting period. Income…
Q: Please break down step by step how the circled figure was calculated. How did they get 6.41766?…
A: It refers to the current worth or value of a sum of money to be received or paid in the future,…
Q: Required information [The following information applies to the questions displayed below.] Ries,…
A: Partnership is the relation between two or more person, It has the following characteristicsThey…
Q: MacroApps Corporation's disclosure notes for the year ending June 30, 2020, included the following…
A: ESPPs can be an important component of an employee's pay package since they give the employee the…
Q: Question 2 Planning its budget for the upcoming fiscal year, ABC Cycling has estimated the following…
A: PRODUCTION BUDGETProduction Budget is the Estimation of Units Produced and Raw material Consumed for…
Q: K Ltd. paid an employee a tax-free travel allowance of $5,200 based on 9,000 kilometres of…
A: According to the question given, we need to compute the total tax-deductible travel allowance. Tax…
Q: The following transactions are July activities of Bennett's Bowling, Incorporated. a. Bennett's…
A: Income statement is one of the financial statements that shows profitability, total revenue and…
Q: Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to…
A: In accounting and finance, intangible assets refer to non-physical assets that are not easily…
Q: Cabinets Unlimited uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Manufacturing overhead is the amount of cost incurred on the production of the goods. It include the…
Q: The balance sheet of Koehn, Incorporated, has the following balances: Cash Accounts receivable…
A: The working capital is calculated as the difference between the current assets and current…
Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…
A: Time Interest Earned Ratio :— Time Interest Earned Ratio is the ratio between Operating Income &…
Q: Jane Stam opens a web consulting business called Stam Consulting and completes the following…
A: Income Statement:Which is a part of Financial Statement, It shows the total expenditure and income…
Q: Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales…
A: Variance analysis is the process of analyzing the difference or variance between the standard and…
Q: Presented below is the 2024 income statement and comparative balance sheet information for Tiger…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Consolidated Industries is studying the addition of a new valve to its product line. The valve would…
A: Income statement is one of the financial statements that shows profitability, total revenue and…
Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned…
A: The business interest deduction is the deduction which has been deducted and is allowed to the…
Q: Daniel earns wages of $86,000 in 2023. What are the total employment taxes paid on the wages?
A: Social Security Tax:For 2023, the Social Security tax rate is 12.4% on wages up to a certain limit,…
Q: The account balances for Premera Blue Cross are listed below. All balances are as of December 31,…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: tiple Choice Question 52 Your answer has been saved and sent for grading. See Gradebook for score…
A: The contribution margin is calculated as the difference between the revenue and variable costs. The…
Q: Exercise 8-37 (Algo) Compute Costs per Equivalent Unit: Weighted-Average Method (LO 8-2, 3) The…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Coyote Loco, Incorporated, a distributor of salsa, has the following historical collection pattern…
A: Budgeting is the process of estimating future operations based on past performance. % are estimated…
Q: GIVE THE COMPARATIVE INCOME STATEMENT HORIZONTAL AND VERTICAL ANALYSIS FROM THE FOLLOWING INCOME…
A: Under horizontal analysis, the previous year is considered the base year. While under vertical…
Q: The owner of a bicycle repair shop forecasts revenues of $192,000 a year. Variable costs will be…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: Stock Split Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants…
A: The stock split affects the number of shares outstanding and par value per share. Total…
Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is…
A: Target profit is like having a destination in mind for your business. It's the specific amount of…
Q: Stockholders' equity of Ernst Company consists of 88,000 shares of $5 par value, 10% cumulative…
A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…
Q: Finch Company produces two products. Budgeted annual income statements for the two products are…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Q: ces Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019,…
A: Net operating loss is a situation of carry forward of losses if those will not completely adjusted…
Q: Riddick Co. purchased all of the outstanding stock of Vaako Inc. for $12,000,000. Vaako's book value…
A: To determine the fair value of net assets:List all assets and liabilities on the company's balance…
Q: Financial Reporting and Analysis Jan23 Y1 S2 The rent income account in the ledger of RT Stores…
A: Accrual basis of accounting is one of important basis. As per this, all revenues earned in the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Maple 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.
- 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.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.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?
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120Gelbart 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?
- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.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?A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
