Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing overhead, and variable selling expense). Total fixed costs equaled $82,500 (includes fixed manufacturing overhead and fixed selling and administrative expense). Operating income for the year was $115,500. Calculate the margin of safety in units. Select one: a. 3,850 b. 1,375 c. 6,600 d. 4,400 e. 2,750
Q: At the beginning of the current period, Skysong, Inc. had balances in Accounts Receivable of…
A: The journal entries are prepared to record the transactions on regular basis. Adjustment entries are…
Q: Edgewater Enterprises manufactures two products. Information follows: Product A Product B Sales…
A: Lets understand the basics.The weighted average contribution margin is based on the contribution…
Q: Not a graded assignment
A: To determine the pension expense for each of 2023, 2024, and 2025, we need to calculate the…
Q: ni.3
A: 1-a) The transfer price of the selling division = $58 Explanation:Step 1: 1-a) Assuming that $3 per…
Q: Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of…
A: Journalizing is the process of recording all the relevant financial information for a certain time…
Q: The operations vice president of Security Home Bank is investigating the efficiency of the bank's…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively.…
A: Contribution margin = Selling price per unit - Variable cost per unit. Total contribution margin =…
Q: Prepare a research presentation on the Tax Legislation Process using these resources:…
A: The objective of this question is to understand the tax legislation process and the key changes in…
Q: Compute for Consolidated Total Asset Consolidated Total Liabilities
A: Consolidated financial statements integrate the financial performances of a parent company and its…
Q: Calculate the purchase price of the $1,000 face value bond using the information given below. (Do…
A: The objective of this question is to calculate the purchase price of a bond given its face value,…
Q: The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine,…
A: Consolidation -The financial information from all companies connected to a parent firm is reflected…
Q: Sandhill Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1,…
A: Under International Financial Reporting Standards (IFRS), the calculation of pension expense…
Q: Date Asset Acquired Way Corporation disposed of the following tangible personal property assets in…
A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…
Q: QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following…
A: The overhead is applied to the production on the basis of the overhead rates. The departmental rate…
Q: At January 1, 2024, Café Med leased restaurant equipment from Crescent Corporation under a nine-year…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The…
A: Total cost is the amount of money incurred by the entity on the making of the goods. It includes…
Q: QUESTION 1 Kinny is a single dad. His family lives in Raleigh but he wanted some space while being…
A: Solution:-The inquiry concerns Kinny, a single dad employed as a radiologist in Virginia Beach. It…
Q: What are the long-term assets which do not have any physical existence? A. Intangible Assets B.…
A: Tangible Assets:These assets are physical, measurable Resources; like Property, Plant &…
Q: Maraton Inc. imports gourmet coffee and sells it to local restaurants. All sales are made on account…
A: The objective of the question is to prepare all necessary entries to record the transactions for…
Q: Sierra Railroad Inc. decided to use the high-low method and operating data from the past six months…
A: Lets understand the basics.In high low mehod, total costs are seprated into variable costs and fixed…
Q: The City of Townsend's city council authorized the establishment of an internal service fund to…
A: Journalizing is the process of recording all the relevant financial information for a certain time…
Q: General advertising costs Advertising specifically focused on the trademark Legal fees to register…
A: Intangible assets may be developed internally or purchased by a company. If an intangible asset is…
Q: Exercise 6-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1,…
A: The contribution margin is calculated under variable costing income statement. Gross profit is…
Q: Please don't use chat gpt and other ai other wise I give multiplie downvote Which of the following…
A: The currently attainable standard represents the level of performance that can be achieved under…
Q: [The following information applies to the questions displayed below.] Lionel is an unmarried law…
A: Answer:- The deduction for interest on higher education loans is subject to specific eligibility…
Q: For February, sales revenue is $613,000, sales commissions are 4% of sales, the sales manager's…
A: Selling Expenses:The expenses that are related to the sales of goods or services are known as…
Q: Juan Dela Cruz is the owner-manager of JDC Trading Company. Total Sales generated during the year…
A: Taxable income:The income on which the tax amount is calculated is known as taxable income. The…
Q: A share of preferred stock has a par value of $100, an annual dividend of 2% and a current market…
A: The required rate of return on the preference stock is 2.99%.Explanation:Step 1:Information…
Q: Sunshine offers a contract to Cape Country Club, which is comprised of 10 patio set plus…
A: The objective of the question is to identify the performance obligations in the contract, calculate…
Q: Use the following single-step income statement of Sunland Company to prepare a multiple step versi…
A: A financial document that summarises a company's sales, costs, and profits (or losses) during a…
Q: Ivanhoe Limited is a publicly traded company on the Toronto Stock Exchange. The company sponsors a…
A: It is defined as the benefit ahead of timeIt is a monthly payment in retirement, based on the…
Q: Invest4U (Pty) Ltd is a company with a December financial year-end. To raise capital for an…
A: To prepare the extracts from the statement of profit or loss and other comprehensive income and the…
Q: **** Tax Information for the Thompsons for 2023: Wages: Sarah ($75,000), James ($60,000) Interest…
A: Taxable income:The tax income refers to the amount on which tax liability needs to be calculated…
Q: Tempo Company's fixed budget (based on sales of 10,000 units) folllows. Fixed Budget Sales (10,000…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: Lily Company's balance sheet at December 31, 2021, is presented below. LILY COMPANY Balance Sheet…
A: Question is solved below Explanation:
Q: U
A: The objective of this question is to calculate the price and quantity variances for direct materials…
Q: The cost of direct materials transferred into the Rolling Department of Kraus Company is $3,000,000.…
A: Equivalent units of production (EUP) are the partially completed units of output that are assumed to…
Q: equired: Complete the production cost report using the FIFO method. ote: Round "Cost per equivalent…
A: A production cost report is a managerial accounting document that provides detailed information…
Q: Sandhill Company provides the following information about its defined benefit pension plan for the…
A: A pension plan requires the employer to set aside a certain sum of money for the future benefits of…
Q: < Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams…
A: The objective of the question is to construct a direct materials purchases budget for each type of…
Q: Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating…
A: To find the present value of the minimum lease payments, we need to discount each future payment…
Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…
A: The journal entry to correct the error would be: 2024Dec 31Debit Depreciation Expense $75,000…
Q: please provide compulsory explanation , narration , computation clearly for each part and steps…
A: Journal entries are used to record all the financial transactions in a business. It helps to know…
Q: What are Outstanding Expenses? A. Expenses which are not paid off in the current balance sheet. B .…
A: If an entity follows an accrual system of accounting, then at the end of the year it records the…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: First-in First-Out Method - Under the First-in First-Out Method, the company uses inventory in the…
Q: Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1,…
A: The purpose of a cash flow hedge is to provide stability and predictability to a company's future…
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: Budget:Budgeting is predicting the future with the help of available data and management…
Q: (Note 1: When computing the expected value of factory hourly payroll, you must take into…
A: The information provided shows the expected value calculations for various expense categories but…
Q: Beavis Construction Company was the low bidder on a construction project to build an earthen dam for…
A: The objective of this question is to calculate the gross profit recognized by Beavis Construction…
Q: Company A obtained the rights to operate a coal mine and started its operations on January 1, 2025.…
A: To calculate the accretion expense that Company A will report in its 2026 income statement, we need…
Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing
Step by step
Solved in 3 steps
- 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. 11,200Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Refer to the list below for the exact wording of an amount description within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Calculate the total variable cost per unit. Variable cost per unit Calculate the total fixed expense for the year. Total fixed expense for the year Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 8 Variable factory overhead per helmet 4 Total fixed factory overhead 20,000 Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the…Aces inc, a manufacturer of tennis rackets, began operations this year. The company produced 6,200 rackets and sold 5,100. Each racket was sold at a price of $92. Fixed overhead costs are $81,840, and fixed selling and administrative costs are $65,400. The company also reports the following per unit variable costs for the year: Variable product costs Variable selling and administrative expenses $ 25.20 $ 2.20 Prepare an income statement under varlable costing. ACES INC. Variable Costing Income Statement Net income (loss)
- Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year $170 $60 $6 OA. $107,200 OB. $334.000 OC. $350,800 OD. $238,000 $35,000 $9,000 1,700 1,400 Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest whole dollar)Solaria Inc. manufactures mechanical pencils. Based on past experience, the company has found that total delivery costs can be represented by the following formula: Delivery costs = $4,800 + 1.25 X where X = the number mechanical pencils produced. Last year, Solaria Inc. produced 15,000 mechanical pencils. Actual delivery costs for the year were as expected. What is the total delivery costs incurred by the company last year? What is the total fixed delivery costs incurred last year? What is the total variable delivery costs incurred last year? What is the delivery cost per unit produced? What is the fixed delivery cost per unit? What is the variable delivery costs per unit?Neon Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Selling price per unit Variable manufacturing costs per unit Variable selling and administrative expenses per unit Fixed manufacturing overhead (in total) Fixed selling and administrative expenses (in total) Units produced during the year Units sold during year $ 130.00 $ 62.00 $ 5.00 $ 30,000 $ 8,000 1,500 1,100 Using variable costing, what is the contribution margin for last year? A. $216,700 8. $69,300 C. $143,000 D. $68,200
- JART manufactures and sells underwater markers. Its contribution margin income statement follows. Contribution Margin Income Statement Per Unit $ 6.00 For Year Ended December 31 Sales (470,000 units) Variable costs Direct materials Direct labor Variable overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income 1.51 0.39 0.60 3.50 0.30 0.25 $ 2.95 Annual Total $ 2,820,000 709,700 183,300 282,000 1,645,000 Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? 141,000 117,500 $ 1,386,500 A potential customer offers to buy 57,000 units for $2.90 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. Direct materials cost per unit and variable overhead cost per unit would not change. • Direct labor cost per unit would be $0.50 because the offer would require overtime pay. • Accepting the offer would require incremental fixed…Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,600 rackets and sold 5.500. Each racket was sold at a price of $96. Fixed overhead costs are $89,760 for the year, and fixed selling and administrative costs are $65,800 for the year. The company also reports the following per unit variable costs for the year: Direct materials Direct labor Variable overhead Variable selling and administrative expenses Required: Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) $ 12.18 8.18 5.24 2.60Last month, Laredo Company sold 510 units for $55 each. During the month, fixed costs were $5,478 and variable costs were $22 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution margin and contribution margin ratio. Unit Contribution Margin Contribution Margin Ratio %