Trailblazer Company sells a product for $195 per unit. The variable cost is $90 per unit, and fixed costs are $724,500. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $202,860. a. Break-even point in sales units b. Break-even point in sales units required for the company to achieve a target profit of $202,860 units units
Q: formation related to Lady Gangster Ltd. For 2021 is summarized below: Total credit sales L5,000,00…
A: Bad Expenses is the amount which shall be debited in the profit in loss account, which shall be…
Q: eBook Show Me How High-Low Method Ziegler Inc. has decided to use the high-low method to estimate…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output. variable costs include…
Q: A partial listing of costs incurred during March at ABC Corporation appears below: Direct…
A: PRODUCT COST Product Cost refers to the costs Incurred to Create a Product. Product Cost…
Q: Identify accounting arrangements and conventions used by organisations.
A: 1. Accrual Basis of Accounting: This is a method of recording financial transactions that involve…
Q: 9) 4%- Describe what the following SEC reports are and their repotting deadline. 20-F and 8-K
A: 20F It is a reporting form submitted to the Securities exchange commission by a foreign private…
Q: Chloe P. Araneta, CPA is an auditor for Delight, a large auditing firm in the country. She is…
A: As per Standard on Auditing - 560 issued by The Institute of Chartered Accountants of India,…
Q: The December 31, 2021, ledger of accounts receivable has a balance of 24,000,000. On this date, the…
A: The allowance for doubtful accounts has the credit balance. The net account receivables is…
Q: Required information Use the following information for the Quick Study below. (Algo) (The following…
A: COST VARIANCE Cost Variance is the Difference Between the Planed Cost & Actual Cost. Cost…
Q: sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record…
A:
Q: You purchase a mixed use building in Queens that is expected to generate $845209 net operating…
A: Lets understand the basics. Net income is a income generated after deducting all type of expenses…
Q: On 30 June 2005 the company A got an invoice from the company B for the use of office space in the…
A: One of the important concept in accounting is "Accrual". Transactions accrued in the relevant period…
Q: Shuttleworth Co. has $100,000 of assets, financed entirely by common shares and retained earnings.…
A: The maximum dividend payable is the amount that equals the balance of retained earnings and the…
Q: On January 1, 20x0, a company purchased a delivery truck for $30,000. They estimated the useful life…
A: Gain or loss on asset means the amount of money earned or lost by selling a long-term asset after…
Q: Explain why budgeting is important?
A: Budgeting refers to the procedure of determining how much amount of money the company or person need…
Q: DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical…
A: Answer Vertical analysis of accounts receivable is = Accounts receivable / Total Assets
Q: Poppy has received a special order for 1,000 units of its product at a special price of $176. The…
A: Relevant cost :— It is the cost that is different in different alternatives. Relevant cost =…
Q: What are 2 reports that can be filtered by customer type? Sales by Customer Type Detail Open…
A: Customer Type: In business, the Sales are Conducted in Cash or on credit. So the Two types of…
Q: P1 is a one-third owner in ABC LLC. P1 sold his interest in ABC to B1 for $95,000 in cash (plus…
A: When a partner sold a partnership interest to someone, the entity theory comes into play, not an…
Q: 9: $100,000 2020: $70,000 2021: $120,000 Company purchased assets costing $120,000 on January 1,…
A: Change of Depreciation Method for Tax Purposes and Reporting of Financial Statements. There are…
Q: Doug and Rachel recently bought their first house for $625 000. As first-time home buyers, they pay…
A: “Since you have asked multiple question, we will solve the first complete question for you. If you…
Q: Pamela One donated a total amount of P500,000, 1/2 to the Makati City Hall and 1/2 to a charitable…
A: As per the legislation in the Philippines, any donation made to a government or any government…
Q: In your examination of the financial statements of Meadow Financial Company, you learn that its…
A: A bonus is an incentive payment given to corporate employees or those charged with governance,…
Q: What charges might indicate the card is being used for impulse buys?There are two. Name both…
A: Impulse buying is when one purchases something without giving it a thought like instant buying from…
Q: Please, not answered with the same person ABC Company obtained a patent in January 2019, at a cost…
A: An impairment loss will be reported when the fair value or the recoverable value of the asset is…
Q: BB Company has several manufacturing plants all over the country. On December 29, 2021, a super…
A: Net income refers to the income which the business has earned over the time period and it is…
Q: P1.2 (LO 4, 5) Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position…
A: Income statement refers to the one of the financial statements (FS) of the business which is…
Q: Unit 8 DB: How to Respond to Requests to Act Unethically A Imagine that you work for a mortgage…
A: Hypothetically answering and speaking - If I were a mortgage broker and were instructed to accept an…
Q: Explain the main areas of focus in the general accepted auditing standards. Explain four actions…
A: Explain the main areas of focus in the general accepted auditing standards. 1. Planning and…
Q: William purchases nonresidential real property costing $300,000 and places it in service in March…
A: Answer As per MACRS depreciation schedule Depreciation rate for first year 2.03333% For second…
Q: Y3 Five Friends Relocation Company prepared the following sales budget: Month Cash Sales Credit…
A: CASH COLLECTION FROM CUSTOMER Cash collections can come from two places that are cash sales and…
Q: used in jet engines, wind turbines, and other industrial applications. 2018-2020 summary…
A: The analysis of differential statement providers with the cause of all the financial decisions and…
Q: In the course of your audit of Cash of Fatherhood Corporation as of and for the period ended…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022.…
A: According to the Federal Insurance Amounts Act (FICA), a 1935 U.S. law that also mandates employers…
Q: Question-1: On January 1, 2022, Ali opened a wholesaler with a capital of 1 million TL.. The…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: Ma3. Partner's tax basis in his partnership interest at the beginning of the year was $10,000. For…
A: A partnership is a form of business in which two or more person agrees to manage and operate a…
Q: Is the following statement true or false: In a targeted repurchase, firm lists different prices at…
A: Buy-Back is a corporate action in which a company buys back its shares from the existing…
Q: For each of the following events or transactions, prepare the necessacry journal entries and…
A: A journal entry records any transaction, whether or not this is an economic one. Transaction…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and…
A: BEP stands for Break even point which is determined through dividing the production fixed cost with…
Q: eBook Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $989,920. The unit selling…
A: BREAKEVEN POINT Break Even means the volume of production or sales where there is no profit or loss.…
Q: Current Attempt in Progress Coronado Inc. had beginning inventory of $19,200 at cost and $32,000 at…
A: The cost of the items that are still on hand at the end of a reporting period is known as ending…
Q: atek Watch Company estimates that warranty costs will equal 2% of sales. In September, total sales…
A: Estimated warranty cost Total sales * 2% $400,000 * 2% $8000
Q: 11. Which of the following is a TRUE statement? A) Subscribed capital stock is considered to be…
A: Subscribed share capital refers to any capital raised through subscribed shares. Put simply, it's…
Q: Jordan had a gross income of $98,886 in 2010. What was her net income in 2010? Use the income tax…
A: Net earnings (NI), additionally known as internet earnings, is calculated as income minus the value…
Q: Please review the Income Statement items per GAAP books and answer the question pertaining to the…
A: Income statement represents the net income or net loss calculated by deducting the expenses from the…
Q: Cold Corporation acquired equipment on January 1, 20X4, for $300,000, with an estimated useful life…
A: Depreciation indicates the fall in the number of fixed assets acquired by the business entities with…
Q: 2- The various persons for which an auditor is charged with the responsibility of communicating…
A: Answer 1) The auditor responsibilities relating to the audit report is he should be unbiased need…
Q: Explain the main items of the financial commentary that interprets and analyses published financial…
A: Main items: Ratios Balance Sheet Income Statement Cash Flow Statement
Q: The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: 5 800 42.44 Mc Graw HIM Shown below is the sales forecast for Cooper Inc. for the first four months…
A: Cash Receipt Budget :— This budget is prepared to estimate the cash collection from customer during…
Q: Dexter Industries purchased packaging equipment on January 8 for $480,400. The equipment was…
A: INTRODUCTION Cost of equipment = $480400 Useful life = 4 Residual value = $39600 Operating hours =…
Step by step
Solved in 4 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?Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
- 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. 11,200Maple 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.Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
- When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales dollars is 323,000,000. Determine Jorgensen Companys margin of safety as a percent of current sales.
- Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)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.