Great Tasting Soft Drinks manufactures and sells a brand of soft drinks that is quite popular in selected areas. The selling price per bottle is $15 and variable expenses $12. The fixed expenses for the period is $200,000. How many bottles must the company sell if it wishes to make a profit before tax of $250,000?
Q: The following information is available for the pension plan of Radcliffe Company for the year 2019.…
A: Pension expense is the amount that a company records in its financial statements as the cost of…
Q: The accountant forgot to record the accrual of salary and wages expense for the last few days of the…
A: Income statement is the financial statement that records all the income and expenses of the business…
Q: Elmo's Music carries a large inventory of guitars and other musical instruments. The store uses the…
A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…
Q: Jamie Holley and Riley Roger share equally in partnership profits. Holley’s partnership capital…
A: The basic information provided is:- • Jamie Holley and Riley Roger share equally in partnership…
Q: Sanders Incorporated is a small brick manufacturer that uses the direct write-off method to account…
A: In case of direct write off method, there will be no allowance for estimated uncollectible account…
Q: Bob collected $55,000 from customers who previously purchased products on account. Bob learned that…
A: In accounting, necessary entries refer to the financial transactions that a company records in its…
Q: please dont provide answer in image format thank you King Tool is a machine shop that uses job…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected…
A: variable Cost per unit remain same at all level of Production variable cost = $48,100 Units…
Q: Haver Company currently produces component RX5 for its sole product. The current cost per unit to…
A: Incremental Cost is the cost incurred for the production of additional units of products . Variable…
Q: Your Mom is Proud of You (YMPY) is preparing their cash budget for the upcoming month of August.…
A: Cash inflow is the amount of money or fund received by the organization whereas cash outflow is the…
Q: The following information has been provided to you from the books of Beril Traders: Assume all…
A: Vat refers to value added tax, which means tax is to be paid to the government at every addition to…
Q: Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at…
A: Lets understand the basics. Target costing is a costing technique in which selling price and…
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the…
A: Flexible budget performance report is the statement which is prepared in order to determine various…
Q: ions, which are based on the products they produce. Canal Division is smaller, and the lives of the…
A: EVA that is economic value added is the amount of extra profit earned than the cost of capital of…
Q: Compute the sales activity variance, and break it down into market share variance and the industry…
A: Sales activity variance- It refers to assessing sale performance by analyzing the difference between…
Q: Knowledge Check 01 Which of the following statements about the categories of measures commonly…
A: The balanced scorecard is a strategic management tool used to measure and track an organization's…
Q: Landen Corporation uses a job-order costing system. At the beginning of the year, the company made…
A: The overhead is applied to the production on the basis of pre-determined overhead rate. The…
Q: Budgeted sales for the month of April are shown in the following table: Sales April May June Cash…
A: The following basic information as follows:- Quarter means three months 4 quarter in a year Company…
Q: You are Capable of Amazing Things (YCAT) is in the process of determining how their costs behave.…
A: Variable cost per unit=Highest activity cost-Lowest activity costHighest activity units-Lowest…
Q: 5. XYZ Industries, has the following information to be used in preparing its flexible budget: . The…
A: The flexible budget is based on standard costs and actual units. The net income is calculated as…
Q: On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: its is $215 per unit. When the spoilage is detected, the spoiled goods are inventoried at $215 pe…
A: Normal spoilage rate = Units of normal spoilage / total good unit completed Normal spoilage rate =…
Q: On November 1, 2024, New Morning Bakery signed a $204,000, 6%, six-month note payable with the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: THIS QUESTION REQUIRES AN ESSAY STYLE ANSWER During the year ended 30 June 2022, Jun, a resident of…
A: Income tax liability is the amount of tax that an individual or entity owes to the government based…
Q: [The following information applies to the questions displayed below.] Phoenix Company reports the…
A: The flexible budget is based on standard rates and actual production level. The difference between…
Q: Foley Corporation has the following capital structure at the beginning of the year: 4% Preferred…
A: Stockholder's Equity - Stockholder's Equity section includes Issuance of Common Stock, Preferred…
Q: Restaurant Sales Summary for month of February, 2018. Total sold PPOP % Item Prime Rib Fish n Chips…
A: Costing is a technique in which the different costs incurred by the business entity are analyzed and…
Q: Favorable, because actual volume is less than standard volume Unfavorable, because standard volume…
A: Volume variance is difference between actual manufacturing overhead applied to production (based on…
Q: Oriole Industries expects credit sales for January, February, and March to be $224,400, $265,200,…
A: Cash collection means the amount of cash collected by the entity from the sales made to the…
Q: Carefully study the following cash budget and determine the amount to be borrowed or repaid during…
A: Cash budget is the statement which is prepared by the entity to forecast the cash receipts and cash…
Q: Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the…
A: Lets understand the basics Unearned Income refers to the income that the company receives before it…
Q: Kansas Enterprises purchased equipment for $72,500 on January 1, 2024. The equipment is expected to…
A: There are different types of depreciation methods such as straight line method,declining…
Q: Analyze and prepare journal entries for the following transactions on the form provided in Exam…
A: "Debit what comes in" is a basic accounting principle that means an increase in assets is recorded…
Q: 1. On the back of Casey's monthly statement, she listed the following outstanding withdrawals #1223,…
A: BANK RECONCILIATION Bank Reconciliation is the Reconciliation Statement of Bank Balance & Cash…
Q: On January 1, Year One, the Benson Company issues a $400,000 serial bond. Beginning on December 31,…
A: A bond issue that is set up so that a portion of the outstanding bonds matures at regular intervals…
Q: Required: Compute the materials price and quantity variances for the month (Indicate the effect of…
A: Standard costs are estimates of the actual costs in a company’s production process Then, the…
Q: The Ombudsman Foundation is a private not-for-profit organization providing training in dispute…
A: Journal entry is an art of recording , summarizing and classifying the business transactions in…
Q: A partnership begins its first year with the following capital balances: Alexander, Capital…
A: Allocation of Profit to the Partner Allocation of profit to the partners is one of the important…
Q: $220,000 on December 31, 2023. What result to Frank?
A: Profit on sale of fixed assets : Profit on sale of fixed assets is an non operating income for the…
Q: Which of the following statements is false? All material variances, favorable or unfavorable, need…
A: Standard costing is a management accounting technique that aids in the planning, monitoring, and…
Q: 1) Dhaliwal Products, Incorporated sponsors a postretirement plan providing health care benefits to…
A: The attribution period for accruing Dhaliwal's expected postretirement health care benefit…
Q: The following information has been taken from the ledger accounts of Yogi Corporation: Total net…
A: The percentage of a company's retained profits that has not been designated for a particular use by…
Q: Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations,…
A: Answer:- Flexible budget meaning:- Budgets that are flexible can be changes to account for…
Q: Electric generating and transmission equipment is placed in service at a cost of $2,650,000. It is…
A: The Modified Accelerated Cost Recovery System (MACRS) classifies fixed assets into groups with…
Q: In 2020 , its 1st year of operations, Fanatic Company earned $20,000 of income before taxes.…
A: (a) The reconciliation of financial income to taxable income for Fanatic Company in 2020 is as…
Q: Budgeted sales for the month of April are shown in the following table: Sales April May June Cash…
A: Balance sheet is the financial statement that records all the assets, liabilities and stockholders'…
Q: Melissa is a very generous single woman. Before this year (2023), she gave over $12,920,000 in…
A: A gift tax is a charge that a government imposes on transfers of money or property made without the…
Q: assets at the beginning of 2025. Here are His findings. Type of Asset Building Warehouse Date…
A: The Depreciation expense is charged on fixed assets as reduction in the value of the fixed assets…
Q: Service cost Projected benefit obligation (1/1) Plan assets (1/1) Company contribution (funded…
A: A defined benefit plan specified how much amount will receive by employees in the future due as a…
Q: Refer the following table. Focus Metals Inc. Comparative Balance Sheet Information November 30…
A: Ratio analysis is defined as a method of analyzing the financial statements where different ratios…
Great Tasting Soft Drinks manufactures and sells a brand of soft drinks that is quite popular in selected areas. The selling price per bottle is $15 and variable expenses $12. The fixed expenses for the period is $200,000.
How many bottles must the company sell if it wishes to make a profit before tax of $250,000?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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?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.
- Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. For each question below, show your computations A net income of $300,000 taking taxes into consideration? How many jeans would Right Fit have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) The contribution margin per unit increases by 20%.A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000 and the company must sell 15,000 units to breakeven. Tax rate is 25%. If the target profit after tax is ₱350,000, how many units must be sold? A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000 and the company must sell 15,000 units to breakeven. Tax rate is 25%. If the target profit after tax is ₱350,000, how many units must be sold?Preston products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales Price: $36.00 per gallon Variable costs: $12.00 per gallon Fixed costs: 504,000 per month Preston products is subject to an income tax rate of 21 percent. a. How many gallons must Preston products sell every month to break even? b. How many gallons must Preston products sell to earn a monthly operating profit of $75,840 after taxes?
- Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. For each question below, show your computations. Ignoring income tax, how many jeans must Right Fit sell in order to break even? How many jeans must the company sell in order to reach A target operating income of $300,000 ignoring taxes? A net income of $300,000 taking taxes into consideration? How many jeans would Right Fit have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) The contribution margin per unit increases by 20%. The selling price is increased to $45. The company outsources manufacturing to an overseas company, increasing variable costs per unit by $1.00 and…Chivas is a well-known liquor producer. Last year, its net profit was recorded to be USD 2 million. Each bottle of liquor is selling at USD 40 per bottle with the variable cost of USD 8. Calculate the number of bottle sold given that the fixed cost was USD 800,000 and tax rate of 38%.Campbell Company manufactures and sells adjustable canopies that attach to motor homes and trailers. The market covers both new unit purchases as well as replacement canopies. Campbell developed its business plan for the year based on the assumption that canopies would sell at a price of $400 each. The variable costs for each canopy were projected at $200, and the annual fixed costs were budgeted at $100,000. Campbell’s after-tax profit objective was $243,000; the company’s effective tax rate is 40 percent. While Campbell’s sales usually rise during the second quarter, the May financial statements reported that sales were not meeting expectations. For the first five months of the year, only 350 units had been sold at the established price, with variable costs as planned, and it was clear that the after-tax profit projection for the year would not be reached unless some actions were taken. Campbell’s president assigned a management committee to analyze the situation and develop several…
- Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 128.00 per service Variable costs 90.00 per service Fixed costs 124,982 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: How many cleaning services must Cruse Cleaning sell in a year to break even? How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $34,086 after taxes?A company manufactures a single product with a selling price of ₱120. Fixed expenses total ₱450,000 and the company must sell 10,000 units to breakeven. Tax rate is 25%. If the target profit after tax is ₱210,000, how many units must be sold? a. 6,223 b. 16,223 c. 16,667 d. 4,667 e. 26,667Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are P120,000 for the year and variable expenses are P6 per unit. In addition, Camp’s salespersons are paid a commission of 10% of their sales.A customer has just approached Camp to make a special, one-time purchase of 10,000 units. These units would not be sold by the salespeople, and therefore no commission would have to be paid. The price Camp would have to charge on this special order to earn an additional profit of P40,000 is: P9.00 per unit P10.00 per unit P5.00 per unit P11.20 per unit