Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct.
Q: Required: Prepare a cash collection summary from sales for the first quarter of 2021.…
A: Cash budget :- it is a document which manages the Cash flow of the business.it show the net effect…
Q: Sunnyvale Computer Company sells a line of computers that carry a six-month warranty. Customers are…
A: Warranty is the promise made to the buyer of the product by the seller to repair or replace the…
Q: implied 1-year forward rate 1 year from today
A: Given Info: R1=7% R2=8% We have to calculate Implied 1 year forward rate 1 year from today, it can…
Q: BFAR Corp. was authorized to issue 500,000 ordinary shares with a par value of P10. One of its…
A: Delinquent shares is a share which has not been paid by the subscriber and therefore such shares are…
Q: Zachary Company has 600,000 shares of common stock outstanding. Perette Corporation purchases…
A: Introduction: Common stock outstanding: It shows the number of share issued by the company which are…
Q: Provide a detailed company overview of Fontana Pharmacy Ltd, which should include the following:…
A: Corporation- A corporation is a legal entity that is distinct from its owners and registered under a…
Q: Please answer asap! UPVOTE will be given! No long explanation needed. At December 31, 2020, GMA…
A: Treasury Stock - Treasury stock is the own shares purchased by the corporation. It shows as the…
Q: Thornton Painting Company is considering whether to purchase a new spray paint machine that costs…
A: Unadjusted rate of return is computed by dividing the increase average income with the initial cost…
Q: During her lifetime, Elaine made several property transfers, including the following: a) The…
A: As per the Federal rules any gift given in the year 2022 exceeding $16,000 to a single person will…
Q: Samantha’s normal wage is R300 per hour and her normal working day is 8 hours. The standard…
A: Compensation paid to an employee can be based on either a piece wage system or a time wage system.…
Q: year
A: Answer(d) $18,200 According to section 179, for tax years starting in 2021 the total deduction and…
Q: 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base…
A: Trend percent is a technique of financial statement analysis. Under this, we find out the changes in…
Q: Use the information provided below to prepare the following for January and February 2023:…
A:
Q: Year 5 Net cash flows Year 1 Year 2 Year 3 Year 4 Year 5 R10 000 R90 000 R90 000 R90 000 R90 000 R90…
A: Net Present Value- Net present value (NPV) is a tool used to calculate the current value of…
Q: -ials rhead ad ed per year се 3.00 per unit $ 17.00 per unit $ 11.00 per unit $ 0.90 per unit $…
A: Absorption costing refers to the concept of determining the cost of a product manufactured by a…
Q: Use the marginal income ratio to calculate the break-even value. INFORMATION Samcor Limited…
A: Contribution margin: Contribution margin is the value derived before adjusting fixed cost and…
Q: Question 3 Study the information given below and answer: 3.4 How many units must be sold if the…
A: Units to Sold to earn a Target Profit = (Fixed Costs + Target Profit) / Contribution Per Unit…
Q: Use the information provided below to calculate the Internal Rate of Return using interpolation.…
A: Internal Rate of Return- According to current projections, the annual rate of growth that a project…
Q: The person invested Sat 5%, $at 11%, and $at 13%.
A: Calculation of interest = Principal amount * rate of interest * time given We take time to be equal…
Q: GMA Corp. has 500,000 shares authorized and has the following information at the end of its first…
A: Authorized shares mean the maximum number of stock stated in Article of Incorporation which a…
Q: Under what responsibility would investigating tax fraud be? tax accounting, Financial Accounting, or…
A: Tax fraud is a type of deception by misrepresenting or suppressing taxable income to evade or reduce…
Q: a. What is the YTM of a perpetual bond with an annual coupon of $6 and currently selling at $108?
A: Since you have asked two different questions, we will solve the first question for you . If you want…
Q: 2.2.1 Labour rate variance 2.2.2 Labour efficiency variance 2.2.3 Variable overheads efficiency…
A: 2.2 question provided above, the formula used will be as follows: 1. Labor Rate Variance = (Actual…
Q: uring 2020, Ma
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases…
A: The cash budget indicates the estimated cash inflows and cash outflows. The companies prepare a cash…
Q: Question 3 Study the information given below and answer each of the following questions…
A: Net income is the amount of money earned by an entity by performing its business activities. It is…
Q: production of product X for the first 5 years follow: nits of product X 36,000 34,500 32,500 31,000…
A: Depreciation under straight line method is calculated by dividing the total cost of the asset (less…
Q: The demand for solvent, one of numerous products manufactured by RZM Industries Inc., has dropped…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Urban Company reports the following information regarding its production cost: Units produced Direct…
A:
Q: (a) Andalusia Sdn Bhd is involved in supplying music instrument business. The retained earning…
A: In the context of the given question, we are required to prepare the journal entries and restatement…
Q: . Which of the following business units has the highest beta factor?
A: Banks or any other business has one the feature or we can say a disadvantage which is the risk which…
Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…
A: Introduction: A projected benefit obligation (PBO) is an economic assessment of how much money a…
Q: a simple stockholders equity account when common stock is issued
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…
A: Introduction: The retained earnings statement is a financial statement that shows how a firm's…
Q: PROBLEM IV Journalize the following transaction: Mar. 1 Received a 60-day, note…
A: A journal entry is the act of recording any transaction, whether one that is commercial or not. An…
Q: 30 June 2022: 1. Total production and sales Selling price per table Variable manufacturing costs per…
A: Marginal income : It is the profit in marginal costing. Marginal income refers to the excess of…
Q: A company has the following budgeted sales data: January February March April Credit Sales…
A: A cash budget specifies the expected revenue and expenditure in the future. This budget is used to…
Q: How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATION…
A: Net profit refers to the amount excess of revenue over expenses. The net profit of the business is…
Q: On December 31, 2020, BFAR Corp. has 5,000, 6% cumulative and non-participating preference shares…
A: Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…
Q: There are various types of auditors who have a variety of skills to conduct audits that are…
A: Auditors are the individuals who verify the company’s financial accounts, and plans and prepare…
Q: Sales Revenue Amount $ b. Cost of sales amount
A: Cost of sales refers to the amount paid for the purchase of inventory of goods that should be sold…
Q: The following company information is available for March. The direct materials price variance is:…
A: Variance is the result of the amount of expected value and actual results. It can be calculated by…
Q: Beginning Inventory 3 units @ $4 $12 Purchases 10 units @ $7 $70 Sales 8 units What is CGS…
A: Introduction: The cost of goods sold (COGS) is the cost of gaining or manufacturing a product that a…
Q: Detox corp planned to sell 25,000 units during the next quarter at a selling price of P52 per unit.…
A: Income and expenses of an entity will be displayed in its income statement where it has all the…
Q: Fanning Corp. incurs the following annual fixed costs: Depreciation $80,000 Officers' salaries…
A: Lets understand the basics. Costs are divided into three types. (1) Variable cost (2) Fixed cost (3)…
Q: Calculate dividends, if any, declared during the year from the given information: Wallace Corp…
A: Computation of ending liabilities=Beginning liabilities - Liability decrease
Q: A Company manufactures exclusive chairs. The company has a policy of maintaining a finished goods…
A: Formula to be used is Budgeted labor cost = Total labor hours x Budgeted direct labor rate
Q: [S1] Valuation will lead to a universal value for an asset. [S2] Valuation when done correctly, will…
A: Here discuss about the details of the valuation of the assets which determine the fair value…
Q: A June sales forecast projects that 8,000 units are going to be sold at a price of $11.00 per unit.…
A: Introduction:- The following basic information as follows under:- A June sales forecast projects…
Q: INFORMATION The following information was provided by Intel Enterprises: The bank balance on 31…
A: Cash Budget- An projected cash input and outflow over the budgeted time are shown in a cash budget.…
I need to understand how to get the variable expenses, can you show work.
Overall CM ratio 75%
Overall Breakeven Point $117,000
Step by step
Solved in 2 steps with 2 images
- Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: In addition, the following sales unit volume information for the period is as follows: a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each. b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.A company has prepared the following statistics regarding its production and sales at different capacity levels. Total costs: 1. At what point is break-even reached in sales dollars? In units? (Hint: Use the capacity level to determine the number of units.) 2. If the company is operating at 60% capacity, should it accept an offer from a customer to buy 10,000 units at 3 per unit?
- Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Required:1. What is the overall contribution margin (CM) ratio for the company?2. What is the company’s overall break-even point in dollar sales?3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.Simeon, Inc. markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears on the following page: 1. Compute the overall contribution margin (CM) ratio for the company. 2. Compute the overall break-even point for the company in sales dollars. 3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $30 per unit sold Advertising expense $186,000 per quarter Sales commissions 8% of sales Shipping expense ? Administrative salaries $96,000 per quarter Insurance expense $10,600 per quarter Depreciation expense $66,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Quarter Units Sold ShippingExpense Year 1: First 32,000 $ 176,000…
- PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even.Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Cost Cost Formula Cost of good sold $28 per unit sold Advertising expense $178,000 per quarter Sales commissions 6% of sales Shipping expense ? Administrative salaries $88,000 per quarter Insurance expense $9,800 per quarter Depreciation expense $58,000 per quarter Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Quarter Units Sold ShippingExpense Year 1: First 24,000 $ 168,000 Second 26,000 $ 183,000 Third 31,000 $ 225,000 Fourth 27,000 $ 188,000 Year 2: First 25,000 $ 178,000 Second 28,000 $ 193,000 Third 38,400 $ 240,000 Fourth 35,400 $ 216,000 Required: 1.…Ruby Company manufactures and sells a single product. The company’s sales and expenses for last year follow in the picture table below Fill in the missing numbers in the preceding table. Use the following questions to help fill in the missing numbers in the table: What is the total contribution margin? What is the total variable expense? How many units were sold? What is the per-unit variable expense? What is the per-unit contribution margin? Answer the following questions about breakeven analysis: What is the breakeven point in units? What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: How many units must the company sell in order to earn a profit of $48,000? Go back to the data given in the table. What is the current margin of safety in units? Again, go back to the data in the table. What is the margin of safety in sales dollars? Again, go back to the data in…
- The controller for the Lillian Corporation created an Excel worksheet that included a profit calculation. The worksheet also contained a data table created using the What-if analysis tool to analyze the sales price, volume, and profit related to the graphics card the company manufactures. The worksheets are pictured next. Profit calculation 2 Sales price per unit $50 3 Less: Variable cost per unit $20 4 Contribution margin per unit $30 5 × Volume 700 6 Total contribution margin $21,000 7 Less: Fixed expenses $12,000 8 Operating income $9,000 9 10 Monthly target profit (minimum) $9,999 Data table 2 $9,000 $45 $50 $55 $60 $65 $70 3 900 $10,500 $15,000 $19,500 $24,000 $28,500 $33,000 4 850 $9,250 $13,500 $17,750 $22,000 $26,250 $30,500 5 800 $8,000 $12,000 $16,000 $20,000 $24,000 $28,000 6 750…The controller for the Lillian Corporation created an Excel worksheet that included a profit calculation. The worksheet also contained a data table created using the What-if analysis tool to analyze the sales price, volume, and profit related to the graphics card the company manufactures. The worksheets are pictured next. Profit calculation 2 Sales price per unit $50 3 Less: Variable cost per unit $20 4 Contribution margin per unit $30 5 × Volume 700 6 Total contribution margin $21,000 7 Less: Fixed expenses $12,000 8 Operating income $9,000 9 10 Monthly target profit (minimum) $9,999 Data table 2 $9,000 $45 $50 $55 $60 $65 $70 3 900 $10,500 $15,000 $19,500 $24,000 $28,500 $33,000 4 850 $9,250 $13,500 $17,750 $22,000 $26,250 $30,500 5 800 $8,000 $12,000 $16,000 $20,000 $24,000 $28,000 6 750…Multiproduct Break-Even Analysis Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company’s overall break-even point in dollar sales? 3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.