Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In a typical year, it costs him $183 in canvas, paints and brushes per painting. This year he sold 511 pictures at a price of $245 each. At the current selling price, what is his percent margin?

Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In a typical year, it costs him $183 in canvas, paints and brushes per painting. This year he sold 511 pictures at a price of $245 each. At the current selling price, what is his percent margin?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In a typical year, it costs him $183 in canvas, paints and brushes per painting. This year he sold 511 pictures at a price of $245 each. At what price would he have to sell his paintings to recognize a margin of 25%?
Phoenix was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $705,and the fixed monthly operating costs are as follows: Rent and utilities $810 Wages and benefits to luthier $2,510 Other expenses $480 Phoenix's accountant told him about contribution margin ratios, and Phoenix understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Phoenix is planning to increase the sales price to $760. What impact will the increase in sales price have on the contribution margin ratio?
Joe is self-employed in a store that has a rental value of R500 a month which he pays, but he can vacate the building without giving notice. His other expenses are R100 a month for maintenance. He makes R25 000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make R20 000 a year. No one else can be hired to work in the store. Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?
avi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $8 per painting. If Xavi sells his paintings for $15, and sells 50 paintings per year more than his breakeven volume, what is his average cost per painting?
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Hagen Banse is a landscape contractor. He charges less for labor than other contractors, but he charges his clients the retail price for a plant while he pays only a wholesale price. Hagen charges a client $450 for an olive tree that only costs him $250. What is the markup percent based on cost?
Staci Valek began dabbling in pottery several years ago as a hobby. Her work is quite creative, and it hasbeen so popular with friends and others that she has decided to quit her job with an aerospace company andmanufacture pottery full time. The salary from Staci’s aerospace job is $3,800 per month.Staci will rent a small building near her home to use as a place for manufacturing the pottery. Therent will be $500 per month. She estimates that the cost of clay and glaze will be $2 for each finishedpiece of pottery. She will hire workers to produce the pottery at a labor rate of $8 per pot. To sell herpots, Staci feels that she must advertise heavily in the local area. An advertising agency states that it willhandle all advertising for a fee of $600 per month. Staci’s brother will sell the pots; he will be paid acommission of $4 for each pot sold. Equipment needed to manufacture the pots will be rented at a costof $300 per month.Staci has already paid the legal and filing fees…
James has a yearly salary of $36,300 . His employer withholds $4382 in state and federal taxes and $3255 in FICA taxes throughout the year. He has the following monthly costs: transportation is $240 , cell phone bill is $50 , student loans require $230 in repayment, and rent is $675 . He is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $120 , internet is $90 , health insurance is $363 , and groceries are $250 . How much money is left each month for discretionary spending after all necessities are accounted for? Round your answer to the nearest cent, if necessary.