1. A company enjoys 30% margin and decides to reduce price by 6%. What % sales increase is needed to offset the reduction? 2. A company enjoys 40% margin and decides to increase the price by 8%. How far can sales drop before the company's profits drop below prior levels?
Q: B. 20 BP = 0.2% C. Basel I is increasing the amount of capital that banks are required to…
A: The basel norms are a fought to co-ordinate the banking regulation around the world as it is…
Q: Question 13: Match each mandatory deduction with its description. Federal income tax Provides…
A: Solution Tax liability is the liability in which a person,business and company are paid an amount…
Q: The same information below will be repeated for the next three questions. Freezit manufactures…
A: Direct Material price variance = (Actual price per kg- Standard price per kg)*Actual quantity…
Q: In correction of combined errors, you need to be careful with counterbalancing and non-…
A: Counter Balancing Errors If the effect of an error in one account is cancelled by the effect of one…
Q: equire
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Prepare the cash budget with the projected income statement of ABC Company from March to June
A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…
Q: Required information [The following information applies to the questions displayed below.] Whitney…
A: In this question, we will find out income tax liability of a couple.
Q: The total assets of the Company are $81000 and its owner's equity is $61000. What is the amount of…
A: Formula: Accounting equation : Assets = Liabilities + Owners equity
Q: B. The following account balances were taken from the ledger of Wilfredo Baltazar, a public relation…
A: Solution: Trial balance list the debit and credit balances in order to ensure that total of debits…
Q: xed. Mesa Verde is considering staining and sealing the table to sell it for $100. Unit variable…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: The following information is extracted from the general ledger of Super Massage Clinic on December…
A: Owner's Equity is the rights of the owners on the assets and responsibility towards the payment of…
Q: If a computer is bought by a company for $100 and is depreciated using the 3-year GDS recovery…
A: Depreciation: Depreciation is the concept applied on reporting of fall in original value of fixed…
Q: The transactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash Flow from Operating Activities - This activity is part of the cash flow statement. It includes…
Q: Fees paid by a client this month for services to be rendered next month will be recorded as income…
A: Accrual Basis of Accounting: When a corporation records revenue before getting paid for products or…
Q: Which of the following statements is correcT? Multple Cholce An endorsement is a written…
A: Endorsement means transfer of check to another person . The person who is transfer the check will…
Q: Profit margin, investment turnover, and return on investment The condensed income statement for the…
A: The total amount paid by your organization as a cost directly related to the sale of products is…
Q: Problem 4 (The Operating and Cash Cycles) Consider the following financial statement information for…
A: Computation of operating cycle and cash cycle is enumerated as below:
Q: The following items appeared on the 2021 financial records of ABC Company: Service Income P600,000…
A: Net income means the profit earned by the business after deducting all the expenses related with the…
Q: QUESTION 1 Which of the following is a for AGI deduction? O Traditional IRA contribution Property…
A: The FOR AGI deductions are above-the-line deductions which are deducted from the AGI to get at the…
Q: On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per…
A: Share premium is the premium or additional paid in capital which has been received by the company in…
Q: What is in the nature of work of an auditor that puts his or her safety at risk? Answer in your own…
A: Auditor is the person who checks the accounts and the financial statements which have to be verified…
Q: Question 14: Based on the wage-bracket method, the federal income tax withholding for an employee…
A:
Q: During a recent week, Charlie Scott works 37 regular hours. He earns $9/hour and contributes 3% of…
A: Taxable income is the portion of your gross income that the IRS deems subject to taxes. It consists…
Q: Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget…
A: Cash budget include all the cash inflows and cash outflows. If the cash inflows are more than the…
Q: In 2021, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file…
A: In this question, We will find out couple's marriage penalty and benefits.
Q: Luebke Incorporated has provided the following data for the month of November. The balance in the…
A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…
Q: Question Two JUBILEE is a quoted company reporting under IFRSs. During the year end 31 December…
A: Financial Statements- Financial statements are written records that communicate the company…
Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year,…
A:
Q: The following items are taken from the financial statements of One Headlight Company for 2021:…
A: The income statement is one of the financial statements of the business which tells about the…
Q: Progressive Tax Based on your yearly income above, calculate the amount of tax each income bracket…
A: Given that : Tax slab rate Rate Income 10% up to $25000 20% $25,000 and $34,000 25% $34,000…
Q: The past year's income statement of a business showed a bottom line of P100,000 net profit. What…
A: Net profit = Revenue + other income- Expenses
Q: 27. $ was advertised at $3,000,000 (based on annual payments of $100,000 for 30 years). Your choice…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the…
A: An equivalent unit of production is an expression of the work done by a manufacturer on partially…
Q: Show Attempt History Current Attempt in Progress Byrd Co. uses the percentage-of-receivables basis…
A: Account Titles and Explanation Debit Credit Bad Debts Expense $ 5,200 Allowance…
Q: Question 15 The accountant's work sheet: A serves as the basis for completing the adjusting process…
A: An Accountant worksheet is comprised of various account balances in columnar format containing the…
Q: Accounting being an information system follows basic accounting concepts or principles also known as…
A: Solution 1: False, Accounting being an information system follows basic accounting concepts or…
Q: An asset is purchased for $90,000. It is expected to have a useful life of six years and a salvage…
A: Introduction: Depreciation: Decreasing value of fixed Assets over its useful life period called as…
Q: Journalize the transactions shown below in the two-column general journal that follows. Calculate…
A: Answer:
Q: Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's…
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: Assume that a bank has lent a firm a P 200,000 for 60 days at 10% interest. The loan is discounted,…
A: Principal amount (P) = P 200,000 Interest for 60 days (I) = P200,000 x 10% x 60/360 days = P3,333…
Q: Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate…
A: Job costing is a method of costing that determines the costs associated with each job or project.
Q: SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the…
A: Labor spending variance = Standard Labor cost - Actual Labor cost Labor rate variance = (standard…
Q: The following items appeared on the 2021 financial records of ABC Company: Service Income ₱600,000…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: On December 31, 2018, Amy and Kaye have capital balances of P400,000 and P320,000, respectively. On…
A: Partnership Account - A partnership is a mutual agreement enter into two or more entities for the…
Q: A nonresidential building was put into service for $200,000 in late February. The building was sold…
A: Depreciation It is important to find out the depreciation cost which are incurred to the assets of…
Q: ast year’s income statement of a business showed a bottom line of P100,000 net profit. What does…
A: Solution: Net profit is the amount that is earned by the company after deduction all operating…
Q: Using the following balance sheet and income statement data, what is the debt to assets ratio?…
A: Lets understand the basics. Debt equity ratio indicates that, how much much debt is there in compare…
Q: Purchases S250,000 Cost of goods sold 250,000 Beginning balance 30,000 Ending balance ?
A: Formula: Ending balance = Beginning balance + Purchases - Cost of goods sold
Q: Jennifer has been very successful in operating her business for the last five years. Her financial…
A: Partnership refers to an agreement between two or more persons to share profit and losses and carry…
Q: Exercise 8-24 (Algo) Controllable and volume variances LO P4 Shaw Incorporated began this period…
A: Volume Variance is a way to determine whether or not there is a discrepancy between the actual…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- compute for the following items: g. If breakeven sales in units will increase by 10,000 units, how much will be the increase/decrease in profits? h. If breakeven sales in units will decrease by 4,000 units, how much will be the increase/decrease in profits? i. If the firm wants to increase its current profits by P 60,000. How much sales revenue does it have to make?4.) refer to the orginal data. Compute the company's margin of safety in both dollar and percentage terms. 5.) what is the company's CM ratio? If the company can sell more units thereby increasing sales by $50000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?III. CVP Analysis A. Discussion Questions: 1. Explain why a contribution margin per unit becomes profit per unit above the breakeven point. 2. Suppose a firm with a contribution margin percentage of 30% increased its advertising expenses by P10,000 and found that sales increased by P 30,000. Was it a good decision to increase advertising expenses? Suppose that the contribution margin ratio is now 40%. Would it be a good decision to increase advertising expense? B. The XYZ Shoe Company operates a chain of shoe stores that sell 10 different styles of men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. XYZ is considering opening another store that is expected to have the revenue and cost relationship shown here: Unit Variable Data (per pair of shoes) Selling price Cost of shoes Sales commission Variable cost per unit…
- 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?QUESTION 2 REQUIRED: Use the information provided below to answer the following questions: 2.1 Calculate the total net profit for the estimated figures. 2.2 Calculate the break-even quantity 23 Calculate the break-even value 2.4 Calculate the break-even value using the marginal income ratio. 2.5 Calculate the target sales volume to achieve a profit of R15 000 000. 2.6 Calculate the new break-even quantity and value if the selling price is increased by 10%. 2.7 Calculate the margin of safety in units at the original budgeted volume and price INFORMATION Kitty Limited plans to manufacture bar fridges. According to the 2020 budget conducted by management, budgeted sales are expected to be R10 000 000 with 5 000 units being produced. The company's direct material and direct labour costs are expected to be 5000 cents and 3500 cents per unit respectively. Whereas, the fixed factory overheads and fixed administrative expenses are budgeted at R450 000 and R200 000 respectively. Furthermore,…A corporation that is a single product firm is predicting that a price increase next year will cause unit sales to decrease. What effect would this price increase have on the following items for next year? A) B) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Multiple Choice Break-even Point Decrease Decrease No effect No effect
- Consider a company that pays out all its earnings (i.e., the payout ratio = 1 or plowback/retention ratio=0). The required return for the firm is 13%. Compute the intrinsic P/E if its ROE is 15%. Compute the intrinsic P/E if its ROE is 20%. Discuss why your answers to parts (a) and (b) differ or do not differ from one another. Suppose that the company’s ROE is 13%. Compute its intrinsic P/E value. Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.d) Compute Safety Margin e) Compute the amount that must be sold to increase operating income (net income) 100 %. f) Marketing manager believes there will be 10% increase in sales if Company decreases price by 10%. Should price be decreased? Explain. g) If Company decreases price by 10%, how many units must be sold to maintain current profit?5. The contribution margin ratio measures the effect on the total contribution margin of a given change in total sales. True False 6. A company with sales of RM100,000, variable expenses of RM70,000, and fixed expenses of RM50,000 will reach its break-even point if sales are increased by RM20,000. True False 7. At the break-even point, variable expenses and fixed expenses are equal. True False 8. All other things the same, a decrease in variable expense per unit will reduce the break-even point. True False 9. An increase in the number of units sold will decrease the break-even point. True False 10. All other things equal, the margin of safety in a company with high fixed costs and low variable costs will tend to be higher than the margin of safety in a similar company that has low fixed costs and high variable costs. True False
- REQUIRED Use the information given below to calculate each of the following independently: 3.1 Expected total Marginal Income and Net Profit/Loss 3.2 3.3 3.4 3.5 Margin of safety (as a percentage; expressed to two decimal places) Break-even quantity if the selling price drops by 10% Break-even value using the marginal income ratio, if the company spends an additional R435 200 on salaries Selling price per unit that will enable the company to achieve a net profit of R1 500 000 INFORMATION Slumber Limited manufactures beds. The following information was extracted from the budget for 2024: Expected production and sales (units) Selling price per bed Direct materials cost per bed Direct labour cost per bed Variable manufacturing overheads cost per bed Fixed manufacturing overheads cost Sales commission (as a percentage of the selling price) Fixed administrative and selling costs 1 200 R6 000 R1 700 R860 R320 R1 084 800 20% R720 000Q4 From the following data, calculate: (a) PIV Ratio. (b) Profit when sales are OMR 40000. (c) New break-even point if selling price is reduced by 20%. Fixed Expenses OMR 8000. Break-Even point OMR 10000.If a company increases its sales price per unit for Product A, the new breakeven point will increase. decrease. remain the same. More information is needed.
