Acme, Inc. sells only one type of product. And it produced and sold 5,000 units of that product last year. Its financial results for the previous year were as follows: Sales Less variable costs Contribution margin Less fixed costs Net income $ 75,000 (24,000) 51,000 (12,000) $ 39,000
Q: Provo Racket Company manufactures two types of tennis rackets, the Youth and Adult models. The…
A: Direct labor budget is used for estimating the total hours required for production and total direct…
Q: Controls that relate to the safeguarding of assets and enhance the accuracy and reliability of the…
A: In accounting and business, controls refer to the measures and procedures implemented to ensure that…
Q: Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly…
A: Cash budget estimates the cash inflow and cash outflow transactions of that specified period.…
Q: John worked 43 hours last week. His hourly rate is $13.45. He has the follow taken from his pay:…
A: Payroll: It implies to the compensation that is paid by the business to it's employees for a…
Q: A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable…
A: Break even is the point at which a entity is in a position of no loss and no profit. At this point,…
Q: I. V. Increases in retained earnings Extended terms obtained from key suppliers A term loan from its…
A: Company needs money for growth and expansion and money can be raised internally and may be raised…
Q: The current asset section of Guardian Consultant's balance sheet consists of cash, accounts…
A: Debts To Equity Ratio = Debts / Shareholder Equity 1.4 = Total Debts / $2,500,000 Total Debts =…
Q: The following units of an item were available for sale during the year: Line Item Description Units…
A: FIFO : It stands for First -In-First -Out. It is a method of inventory valuation where materials are…
Q: Inventory Costing Methods - Periodic Method Fortune Stores uses the periodic inventory system for…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using average…
Q: Activity rates and product costs using activity-based cost Idris Inc. manufactures entry and dining…
A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…
Q: Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Vaughn Manufacturing, Inc. can produce 100 units of a component part with the following costs:…
A: Direct material = $21,500 Direct labor = $7,000 variable Overhead = $22,000 Fixed Overhead = $14,000…
Q: A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per…
A: A sinking fund can be referred to as a saving account in which a fixed amount is deposited after the…
Q: Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com.…
A: Given: Ken is 63 years old and unmarried. He retired at age 55 when he sold his business.…
Q: how exactly did you get the bad debt expense?
A: Allowance method is the GAAP approved method of providing for valuation of accounts receivable. In…
Q: Effects of an Error in Ending Inventory Waymire Company prepared the partial income statements…
A: Corrected income statement is where all the errors regarding financial year is corrected for the…
Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…
A: Computation of Safe cash paymentEstimated cash after setting of creditors and liquidation Expenses =…
Q: the income is derived solely and exclusively from emoluments, from which tax at source is deducted…
A: Tax at source refers to the system in which taxes are withheld or deducted by the payer of income…
Q: Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering…
A: By examining the relationships between various financial factors, ratio analysis is a technique for…
Q: Calculate the cost of goods sold on April 30, using a. b. C. valuation method LIFO valuation method…
A: LIFO valuation method: Using the LIFO (last-in, first-out) method, we assume that the units sold are…
Q: Peter, James, and John are partners with capital investments of P450,000,P350,000 and P500,000…
A: The total partnership capital is the sum of all the capital balance of the old partners plus the…
Q: “A key component of the Accounting Conceptual Framework (ACF) is the qualitative characteristics of…
A: The Accounting Conceptual Framework (ACF), created by the International Accounting Standards Board…
Q: s. The company has fixed expenses of $100,000 and variable exp rendy Ten needed to sell to earn a…
A: Operating income is the profit available after deductions of fixed cost and variable cost from the…
Q: John Murray is a florist and earned wages in 2022 of $53,950. Ellen Murray, John's wife, inherited…
A: Joint Income tax liability is the liability arising due to taxes applicable on income for an…
Q: he Vermont Construction Company purchased a hauling truck on January 1 of 2019, at a cost of…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Sheffield Company estimates that unit sales will be 13,000 in quarter 1, 18.200 in quarter 2, 19,500…
A: Budget means the expected value for future. Budget is prepared for future and actual value is…
Q: Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of…
A: Variance is a term used in budgeting. It is the difference between a budgeted or standard cost and…
Q: At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the…
A: Cash budget as the name implies is the estimate of cash inflow and cash outflow from various…
Q: Sorenson Co. is considering the following alternative plans for financing the company: Issue 10%…
A: Basic earning per share :- Basic earnings per share is the amount of a company's profit that can be…
Q: afety Development Corporation had relatively large idle cash balances and in
A: Investment: A short-term investment is one that can be sold within a year, and there are two main…
Q: SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.]…
A: Budgeted Income Statement Budgeted Income Statement is a Statement that a company use to estimate…
Q: Required information RWP7-1 (Algo) Great Adventures Continuing Case [The following information…
A: Depreciation under SLM is calculated equally throughout the useful life of the asset. Cost Of Asset…
Q: The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $…
A: The pre-distribution plan is a part of the liquidation process and refers to a plan of dividing the…
Q: In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable…
A: Individuals, companies, and corporations earn income through revenue streams. Each country has its…
Q: -process in December follows: Beginning inventory, 50,000 partially complete units, 10 percent…
A: Answer : Statement of equivalent production : Material Conversion Unit completed 107,000…
Q: A company's calendar-year financial data are shown below. The company had total assets of $339,000…
A: Ratios are the measures that are used to analyze the financial statements that are income statement…
Q: Gringo Company is completing the preparation of the financial statements for the year ended December…
A: There are two types of events which occurs after reporting period - Adjusting Event and…
Q: Required: Prepare Shadee's budgeted income statement for the months of May and June Note: Do not…
A: Budget-making is a continuous process and requires discipline, commitment, and regular monitoring.…
Q: Penny is paid a gross wage of $2,846 on a monthly basis. She is single and is entitled to 2…
A: Income tax is a tax levied by the federal government and some state governments on an individual's…
Q: Abrams Corporation incurred the following quality costs during the year: Inspections $ 35,400…
A: Internal failure cost is the cost which incurred for the defects found before supplying products to…
Q: Aztec Corporation uses a periodic inventory system and the retail inventory method to estimate…
A: "Net purchases at retail" is a term used in the retail industry to describe the cost of merchandise…
Q: Required: Prepare Shadee's May and June purchases budget for the adjustable poles. . Required:…
A: A direct materials budget is a type of budget that is prepared to estimate the materials required to…
Q: Greg wants to buy a $25,000 car today, but he doesn’t have the cash to buy it. The dealership is…
A: Loans are paid by equal monthly fixed types of payments and these payments carry the payment of…
Q: ! Required information [The following information applies to the questions displayed below.] A…
A: DIRECT LABOUR COST VARIANCE Direct Labour Cost Variance is the difference between the actual direct…
Q: Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at…
A: Taxable income is the amount of income that is subject to income tax after taking into account any…
Q: is deferred revenue and deferred income tax included in the debt percent ratio caluculation?
A: The debt ratio is a method to find out the leverage. If a company has more debt it is considered…
Q: The information that follows relates to equipment owned by Sweet Acacia Limited at December 31,…
A: The permanent decline in the value of a company's assets is referred to as impairment in accounting.…
Q: Under the weighted-average method, the ending inventory is:
A: Under weighted average cost the average cost per unit change after every purchase or sale . and the…
Q: Please solve this ASAP! Which of the following is NOT correct? i. Initial allowance is claimable in…
A: Capital allowances and depreciation appear to be two tax-deduction techniques that businesses can…
Q: ! Required information [The following information applies to the questions displayed below.] Trey…
A: A child tax credit as per IRS rules reduces your tax burden substantially as it is…
Sh11
Please help me
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.Sports-Reps, Inc., represents professional athletes and movie and television stars. The agency had revenue of 12,345,000 last year, with total variable costs of 5,678,700 and fixed costs of 2,192,400. Required: 1. What is the contribution margin ratio for Sports-Reps based on last years data? What is the break-even point in sales revenue? 2. What was the margin of safety for Sports-Reps last year? 3. One of Sports-Repss agents proposed that the firm begin cultivating high school sports stars around the nation. This proposal is expected to increase revenue by 230,000 per year, with increased fixed costs of 122,500. Is this proposal a good idea? Explain.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?
- 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. 11,200Garrett 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.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. 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 October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- Cost-Volume-Profit, Margin of Safety Victoria Company produces a single product. Last years income statement is as follows: Required: 1. Compute the break-even point in units and sales dollars calculated using the break-even units. 2. What was the margin of safety for Victoria last year in sales dollars? 3. Suppose that Victoria is considering an investment in new technology that will increase fixed cost by 250,000 per year but will lower variable costs to 45% of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming that Victoria makes this investment. What is the new break-even point in sales dollars, assuming that the investment is made?Maple 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.Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000 units) $1,384,600 Less: Variable costs 938,400 Contribution margin $ 446,200 Less: Fixed costs 258,500 Operating income $ 187,700 Required: 1. Compute the break-even point in a) units and b) sales revenue. (In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.) 2. What was the margin of safety in dollars for Drake Company last year? (Round your final answer to the nearest whole dollar.) 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $227,800 per year, but will lower variable costs to 48 percent of sales. Units sold will remain unchanged. a) Prepare a budgeted income statement assuming Drake makes this investment. (Round all amounts to the nearest dollar.) b) What is the new…
- Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the company's sales revenue be if it wants to earn $50,000 next year? $192,000 O $208,000 $226,667 $211,111 None of the aboveEllie Manufacturing Company produces three products: A, B, and C. The income statement for the most recent year is as follows: $200,000 Sales Less: Variable cost Contribution margin Less fixed cost: Manufacturing Selling and administrative Sales 34,000 Operating income $39,000 The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows: Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common expenses $ $20,000 14,000 $ $ A $60,000 Contribution margin ratio Direct fixed expenses of products Required: Prepare income statements segmented by products. Include a column for the entire firm in the statement. Ellie Manufacturing Company Segmented Income Statement For the Most Recent Year A B 127,000 $73,000 $40,000 30% $8,000 $5,000 35% C B $ C Total $100,000 40% $4,000Drake Company produces a single product. Last year's income statement is as follows: Sales (25,000 units) $1,532,500 Less: Variable costs 1,027,500 Contribution margin $505,000 Less: Fixed costs 273,600 Operating income $231,400 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars $ 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $216,600 per year, but will lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming Drake makes this…