The Oriole Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs (a) $7,500 $1,500 $1,300 $200 $24 $46 x Your answer is incorrect. Break-even point per month per month per month per month per room per room Determine the inn's break-even point in number of rented rooms per month. 402 rooms
Q: TB Problem Qu. 6-283 (Algo) Spiess Corporation has two major... Spless Corporation has two major…
A: The income statement is prepared to record the revenues and expenses of the current period. The…
Q: Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was…
A: Using the LIFO (Last-In-First-Out) method, the most recent purchases are assumed to be sold first,…
Q: Allgone Company's inventory was destroyed by fire. Its records show net sales of $90,000, beginning…
A: Answer:- Ending inventory:- The value of products still on the hand and available for sale by an…
Q: Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its…
A: Here we need to calculate the EPS and diluted EPS for the parent company. EPS (Parent) = ((Net…
Q: Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash…
A: The income statement is prepared to know the profitability, The income statement is prepared at the…
Q: Exercise 9-16 (Algo) Flexible Budget Performance Report [L AirQual Test Corporation provides on-site…
A: Revenue and spending variance :— It is the difference between actual results and flexible budget.…
Q: Last month when Holiday shane, Inc., sold 42,000 units, total sales were $400,000, total variable…
A: Contribution margin is a financial metric that represents the difference between a company's total…
Q: Jenny Jones is the assistant accountant for the Anzac Ltd corporate group. Jenny has recorded the…
A: Introduction Here, we are the group accountants. So, we will be working on the consolidated…
Q: QS 13-15 Financial statement impact of stock issuances and treasury stock P1 P3 Total Assets Total…
A: 1. Issued $12,000 of common stock for cash Total Assets: Increased by $12,000 Total Liabilities:…
Q: The cost of goods available for sale during the period totaled $560,000. Finished goods inventory at…
A: Answer:- Ending inventory:- The amount of inventory a business has on hand at the end of the year…
Q: Suppose the following information was taken from the 2022 financial statements of FedEx Corporation,…
A: Solution We are provided with the following information Accounts receivable (net) of 2022 = $ 3,350…
Q: IF you invested K10, 000 in Microsoft 10 years ago, and that your shares (including reinvested…
A: The annualized rate of return is a financial metric that measures the average annual gain or loss on…
Q: Which of the following represents an investing activity in the statement of cash flows? a) Sale of…
A: Cash flows is the statement which is prepared by the entity in order to report the cash inflows and…
Q: What is the role of accounting in corporate governance and accountability, and how can accounting…
A: Accounting plays a crucial role in corporate governance and accountability by providing a framework…
Q: Professional Exam Prep (PEP) uses a cost-plus model to determine the price it charges students.…
A: The amount of price charged by the entity is the value which covers the costs incurred by the entity…
Q: Exercise 7-16 (Algo) Record amortization expense (LO7-5) On January 1, 2024, Weaver Corporation…
A: Amortization expenses to be charged on Intangible assets over it's useful life of an asset. This is…
Q: Strong Metals Incorporated purchased a new stamping machine at the beginning of the year at a cost…
A: Depreciation is used to allocate capital expenditure over the use ful Life of asset. There are…
Q: Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Bonita Company is a multiproduct firm. Presented below is information concerning one of its…
A: Average-cost per unit=Total cost of goods available for saleTotal units available for sale
Q: How do cultural, social, and historical factors shape the development of accounting practices in…
A: Accounting practices are the methods and procedures used to record, classify, analyze, and report…
Q: Using the following information about Peggy Inc, calculate equity value. Share price Authorized…
A: Equity value refers to the total value of a company's equity or ownership interest, which is…
Q: QUESTION 1 Based on the below information: • Planned value (PV) = $2,200, . %Work completed= 24%, •…
A: Cost variance: It implies to a difference in the actual and budgeted cost of completing an activity…
Q: 2016 2017 Units of X400 produced and sold 12,000 13,800 Selling price $145 $140 Direct materials…
A: For 2016: Total revenue = 12,000 units * $145 = $1,740,000 Direct materials cost = 36,000 sq ft *…
Q: Brown Glory Corp. has sales revenue of $150,000, sales discounts of $12,000, sales returns…
A: Solution... Sales = $150,000 Sales Discount= $12,000 Sales Return and allowances = $24,000…
Q: Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its…
A: Materials Quantity Variance=(Actual Quantity-Standard Quantity)×Standard Price
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.…
A: Alyeski Tours Flexible Budget For the Month Ended July 31 Number of Cruises…
Q: Sonic has the following information: Income statement method used to estimate un-collectible…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: Prepare the entry to record the lease. (Credit account titles are automatically indented when amount…
A: The lease shall refer to a contract or an arrangement wherein a right of control on an asset is…
Q: Cougar Tree Services reports the following amounts on December 31, 2024. Assets Liabilities…
A: 1. Balance Sheet - Balance Sheet includes assets , liabilities and Stockholder's equity. This…
Q: Which of the following is not included in the definition of earnings persistence?
A: The magnitude of the earnings is not included in the definition of earnings persistence. Earnings…
Q: A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is…
A: Difference in Absorption costing net operating income and Variable costing net operating income :…
Q: QUESTION 25 Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820,…
A: Inventory shrinkage happens when there are less items in stock than are indicated on the inventory…
Q: Required: What are the current gross profit margin percentages on both systems? UR Safe's management…
A: Requirement:-1 Calculation of current profit margin as follows under:- Formula =Profit/Selling price…
Q: On January 1, 2022, Kinney, Inc., an S corporation, reports $32,800 of accumulated E & P and a…
A: Accumulated adjustments account (AAA): It refers to a corporation's account that tracks adjustments…
Q: During its first five years of operations, White Consulting reports net income and pays dividends as…
A: Retained earnings are the balance of accumulated profit earned during the life of the business after…
Q: Problem 14.20 LO 4, 5 Purchases budget-analytical Precious Stones Ltd. is a retail jeweler. Most of…
A: The cost of goods sold is calculated as difference between sales and gross profit. The required…
Q: On July 31, 2021, John Deere Manufacturing Company purchased a machine that cost $1,200,000, with an…
A: Depreciation Expenses: Depreciation Expense is a Expense incurred on the fixed assets of the…
Q: The following information pertains to Camp Corp's issuance of bonds on July 1, 20X5: Face amount…
A: Solution: Correct answer : (d) $807 Present value of bond for 10 years @ 9% = $ 1000 * 0.422 = $ 422…
Q: Given the following information, determine the cost of the inventory at June 30 using the LIFO…
A: LIFO Last in last out is the method of inventory management used to record inventory. In this…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: The question is based on the concept of Financial Accounting. In case of construction contracts…
Q: Intercompany sale of depreciable assets Assume on January 1, 2018, a parent company acquired a 75%…
A: Depreciation is the amount which is reduced from the book value of the assets due to its uses or…
Q: The financial balances for the Atwood Company and the Franz Company as of December 31, 2020, are…
A: When two or more organizations unite to form one, this is called consolidation. The operating costs…
Q: Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:…
A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…
Q: Web Wizard, Incorporated, has provided information technology services for several years. For the…
A: Allowance for Doubtful Accounts - Allowance for doubtful accounts is a provision made by the…
Q: An investment of R1 500 000, made two years ago, has increased in value to R1 700 000, and has…
A: Investment are done to earn profit on investment and that profit earned above the investment done is…
Q: On October 31, 2020, DonutCo Company signed a $890,000, 5%, ten-month note payable with the amount…
A: Notes Payable - Notes is an instrument required to be issued by the borrower. This instrument is a…
Q: Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels…
A: The correct option with proper explanation are as follows Calculation of fixed cost using high low…
Q: Carla Vista Company established a petty cash fund on May 1, cashing a cheque for $150.00. The…
A: Petty cash is part of cash and cash equivalent that is highly liquidated as it mostly contains cash,…
Q: 7-20. Human Resource Internal Service Fund. (LO7-2) The City of Townsend's city council authorized…
A: Introduction: Each business transaction should pass journal entry by showing debit side and credit…
Q: On January 1 of Year 1, Holiday Inc. offered a stock option incentive plan to a top executive. The…
A: An employee stock option plan, also known as ESOP is a compensation plan that is offered to the…
Please help me with correct answer thanku
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $55,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25 and the cost per unit is $7.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.Ac Gems in the Rough, a jewelry company, the engraving department is a bottleneck. The company is considering hiring an extra worker, whose salary will be $56,000 per year, to ease the problem. Using the extra worker, the company will be able to engrave 8,000 more units per year. The selling price per unit is $16. The cost per unit currently is $11.85 as shown: What is the annual financial impact of hiring the extra worker for the bottleneck process?Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.
- At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The company is considering hiring an extra worker, whose salary will be $67,000 per year, to ease the problem. Using the extra worker, the company will be able to produce and sell 9,000 more units per year. The selling price per unit is $20. The cost per unit currently is $15.85 as shown: What is the annual financial impact of hiring the extra worker for the bottleneck process?Gelbart 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?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?
- 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 of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
- The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries $10,850 per month Utilities 2,900 per month Depreciation 1,600 per month Maintenance 850 per month Maid service 8 per room Other costs 34 per room Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars. 1. Break-even point in rooms 2. Break-even point $ If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? (Round ratio to 0 decimal places, e.g. 10.) 1. Margin of safety $ 2. Margin of safety ratio %The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: Salaries $5400 per month Utilities $1300 per month Depreciation $1100 per month Maintenance $2520 per month Maid service $33 per room Other costs $63 per room a/ Determine the inn’s break-even point in number of rented rooms per month. b/Determine the inn’s break-even point in dollars.The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $40 a night. Operating costs are as follows: Salaries $5,000 per month Utilities $1,100 per month Depreciation $1,200 per month Maintenance $780 per month Maid service $7 per room Other costs $13 per room (A) Determine the inn’s break-even point in number of rented rooms per month. Break-even point enter the break-even point in number of rented rooms rooms (B) Determine the inn’s break-even point in dollars. Break-even point in $enter the break-even point in dollars