Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio? O25%. 33 1/3 %. 45%. Ⓒ30%.
Q: Question 12 Dank Ltd reported cost of goods sold as follows: Beginning inventory Cost of goods…
A: The cost of goods sold is overstated with overstated beginning inventory and understated with…
Q: 7. At the end of the year, Judie Co. reports the following inventory amounts ($ per unit): Item A B…
A: LCM method is an acronym for lower of cost and net realizable value. As per the LCM method, the…
Q: nal entries to record these transactions. (Credit account titles are automatically indented when…
A: Introduction Retirement of assets: Retirement occurs when a depreciable asset is removed from its…
Q: Required Information [The following information applies to the questions displayed below.] General…
A: Journal Entry is the primary step to record the transactions in the books of accounts. Sales made on…
Q: Which of the following statements is FALSE? a. The mark up is a percentage applied to base cost. O…
A: Markup is the percentage computed on the amount of cost to know the markup applied by the entity on…
Q: Selena Company applies overhead based on direct labor hours and has the ollowing available for…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Q: h 6 basd no aboo Starter 5-4 Starter 5-5 Starter 5-6 a. Prepare entries for the following…
A: DISCOUNT TERM The 2/15 net 45 calculation is a way of providing cash discounts on purchases. It…
Q: Estimated Sales Sales Purchases Ending Inventory Administrative Salaries Marketing Expense** Sales…
A: Income statement refers to the statement which is prepared by the business at the end of the period…
Q: pr3pare the journal entries
A: Journal Entry is the primary step to record the transaction in the books of accounts. Statement of…
Q: Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit…
A: Break even is the point at which the entity is in a situation of no profit and no loss. The entity…
Q: eBook Inventory Costing: FIFO Filimonov Inc. has the following information related to purchases and…
A: FIFO is first in first out inventory costing method under which inventories which are purchased…
Q: stations. Its beginning inventory of chairs was 220 units at $46 per unit. During the year, Cortez…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…
Q: A) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he…
A: Year Assumption 1 Cumulative savings 0 USD 6,200 USD 6,634 1 USD 6,200 USD 13,732 2 USD 6,200…
Q: The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling…
A: Equivalent units means number of units completed or manufactured in the particular period. Weighted…
Q: The management of Zigby Manufacturing prepared the following balance sheet for March 31. ZIGBY…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Cougar’s Accounting Services provides low-cost tax advice and preparation to those with financial…
A: The net income or loss is calculated as difference between total revenue and total expenses. The…
Q: The following bond investment transactions were completed by Starks Company: Jan. 31. Purchased…
A: Journal entries contains the entries which are passed by the company during the year and it records…
Q: Question 19 Compared to managerial accounting information, financial accounting information tends to…
A: Managerial accounting, also known as management accounting, is a branch of accounting that focuses…
Q: 3. During March, the following sales and purchases of inventories were made by Noor Company: March 1…
A: 1.FIFO (First-in, First-out) assumes that the first items purchased are the first ones sold, leaving…
Q: Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable…
A: Variance arises when the actual cost is different from the budgeted costs. The results are favorable…
Q: 5. The unit variable cost is $6.43, unit selling price is $10, total fixed costs are $638.03, and…
A: Net income is calculated by subtracting fixed cost and variable cost from revenue. Contribution…
Q: The tax base of a liability is a. Its carrying amount b. The amount that will be deductible for…
A: The term "tax base" refers to the overall income that can be taxed by a taxation authority,…
Q: Vincent Corporation has 100,000 shares of $100 par common stock outstanding. On June 30, Vincent…
A: Stock Dividend - Stock Dividend is the corporate action taken by the company management. Stock…
Q: Question 9 A company made no adjusting entry for prepaid expenses at the end of the financial year.…
A: Prepaid expenses refer to the costs that a company pays in advance for goods or services that it…
Q: White planned to use $82 of material per unit but actually used $80 of material per unit, and…
A: Solution... Sales Volume Variance = (Actual Units sold - Budgeted Units sold) x Budgeted Price…
Q: An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and…
A: Break Even Point may be defined as the point where the total revenue and the total costs are equal.…
Q: Question Two: D'Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are…
A: T-Account :— It is journal ledger account in which transactions are posted after passing journal…
Q: Sports Socks has a policy of always paying within the discount period and each of its suppliers…
A: Accounts Payable :— It is the amount payable by company to their suppliers. Direct Material…
Q: X Incorporation produces three products, Product A. Produc requires 8 Labor hours per unit to be…
A: under this, the contribution in sales will be shown as the percentage of the total sales. That is…
Q: Guidelines for Future development and research of the role of Accounting Theory in Financial…
A: Emphasize the importance of transparency and accountability: The role of accounting theory in…
Q: Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: First cost Book depreciation life MACRS property class Salvage value n 1 2 3 4 5 6 7 8 A $8,000…
A: Depreciation: It is a method of charging the cost of the asset to the income statement each year.
Q: Erin Mikell Company was concerned that increased sales did not result in increased profits for 2018.…
A: The difference in both variable costing and under absorption costing is because of the method of…
Q: Reporting Operating Lease—Lessee On January 1 of Year 1, Lessee Inc. leased equipment at an annual…
A: Lease Amortization: Lease amortization can be defined as the decrease in the value of an asset…
Q: What are the Guidelines for Future development and research of the role of Accounting Theory in…
A: Promote the development of a comprehensive accounting theory framework: Future research and…
Q: The dates of importance in connection with a cash dividend of $50,000 on a corporation's common…
A: Journal entries are the transactions which are recorded by the entity for the purpose of preparing a…
Q: Which statement(s) concerning cash is/are true? Cash is a non-current asset. The normal balance of…
A: Cash is one of the asset being used in business. It can be cash in hand or cash held in bank…
Q: Question 16 If a company failed to make the end-of-period adjustment to record depreciation of a…
A: Depreciation refers to the gradual decrease in the value of an asset over time due to wear and tear,…
Q: Exercise 8-3 (Algo) Direct Materials Budget [LO8-4] Two grams of musk oil are required for each…
A: Direct Material Budget :— This budget is prepared to estimate the units of direct material needed…
Q: The table below shows a series of cashflows. At an interest rate of 10% per year, what are the…
A:
Q: Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget…
A: A static budget is a schedule of forecasted revenues and expenses based on the forecasted level of…
Q: The current period statement of cash flows includes the following: Cash balance at the beginning of…
A: A cash flow statement is a type of financial statement that shows how much money comes in and goes…
Q: Matrix, Incorporated, acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2024. The fair…
A: The company invests in another company by purchasing a porting of the equity of another company. The…
Q: Sales Cost of goods sold Gross profit Dividends received Management fee revenue Gain on sale of…
A: 1.Acquisition Analysis at 1 July 2022:Consideration transferred by Harry Ltd: Cash paid for the…
Q: CONSOLIDATED BALANCE SHEETS ($ in millions) ASSETS Property and Equipment Land and buildings…
A: Depreciation is a measure of wearing out of assets from its use efflux over time or obsolete through…
Q: Problem 5* Baby Co. recorded the following data pertaining to raw material X during January 2023:…
A: Inventory refers to the products or items an entity is required to trade so that it can generate…
Q: In Crane Company, total materials costs are $32,000, and total conversion costs are $57,000. E…
A: In this question, we will calculate the material cost per unit by dividing the Total Material Cost…
Q: Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a…
A: Assets are the resources owned by the entity. These can be non-current and current. Liabilities are…
Q: alculate the financial ratios of Spinneys in 2022 and 2021. 2- Analyze the change between the…
A: Current ratio refers to the one of the financial ratio which is computed in order to evaluate the…
Q: and their balances as at December 31, 2018, its second year of operation: The books of Laredo…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Sh9
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?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?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.
- 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.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. 2,000Marlin 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.
- 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.Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
- Jonick Company has sales of $460,000, and the break-even point in sales dollars is $372,600. Determine the company's margin of safety as a percent of current sales.___ %The Rachel Company has sales of $450,000, and the break-even point in sales dollars is $292,500. Determine the company's margin of safety as a percent of current sales.fill in the blank 1 %Dean Company has sales of $76,000, and the break-even point in sales dollars is $47,120. Determine the company's margin of safety percentage. Round answer to the nearest whole number.fill in the blank 1 %
