2. Prepare a contribution-margin-based income statement for Super-Tees Company for the coming year. If required, round your per unit answers to the nearest cent.
Q: 1, 2015, Dorricks Ltd. borrowed $500,000, issuing a five- year mortgage bond. No principal payments…
A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: Problem 14-16A (Algo) Determining cash flows from financing activities LO 14-4 The following…
A: Cash flow statement means the statement which shows the cash inflow and outflow during the…
Q: 45 units are in the ending inventory. Beginning inventory: 35 units at $6.14 June 3: 45 units at…
A: FIFO which is also written as first in first out, is the method under which ending inventory is…
Q: Vaden Company purchased a patent from Williams Co. for $260,000 on January 1, 2016 when there was 15…
A: Solution: a. Compute the carrying value: Carrying value = 260,000 - (260,000 / 10 * 6 ) +…
Q: A & B contribute marketable securities to Corp. Z in exchange for all the issued stock. The…
A: Marketable securities are those investments that can be swiftly converted by the business entities…
Q: en as 2. An office Equipment was acquired on May 01, 2016 for P 45,000. estimated of five years with…
A: DEPRECIATION EXPENSES Depreciation Expenses is the monetary value of an asset decreases over…
Q: Thomas Martin receives an hourly wage rate of $25, with time-and-a-half pay for all hours worked in…
A: Gross pay Gross pay means the amount paid to the employees before all taxes and benefits. The Gross…
Q: The K. Wilson, Capital account balance was $179,000 at December 31 of the prior year, and there were…
A: INCOME STATEMENT Income Statement is one of the Important Financial Statement of the Company. Income…
Q: Sales Cost of goods sold Gross profit $175,000 105,000 $70,000 Prepare a vertical analysis of the…
A: The vertical analysis of income statement is performed as comparing all the elements of the income…
Q: Theodore (67) and Jessica (59) are married wit
A: In California if yor are a legally blind then you are eligible for special…
Q: The main difference between US GAAP and IFRS is?
A: The main difference between US GAAP and IFRS is that US GAAP is a set of accounting principles,…
Q: Brady Construction Company contracted to build an apartment complex for a price of $6,100,000.…
A: As the first step we have to compute the percentage of completion of the revenue recognition as well…
Q: Sunland Company expects to have a cash balance of $42,300 on January 1, 2022. Relevant monthly…
A: Cash budget estimates the cash inflow and cash outflow transactions of that specified period.…
Q: Travis Company purchased merchandise on account from a supplier for $14,000, terms 2/10, net 30.…
A: Concept of 2/10, net 30: 2/10 means discount of 2% is valid for 10 days from the date of invoice.…
Q: In 2022, Jessie had Box 1 wages of $87,000, interest income from a bank account of $4,500, a state…
A: The question asked to compute adjusted gross income of Jessie. Adjusted gross income: The adjusted…
Q: Department S had no work in process at the beginning of the period. It added 13,000 units of direct…
A: Solution.. Conversion costs includes direct labor and the factory overhead costs .
Q: aher are living in Kabul as the humanitarian crisis looming in the country and the situation seems…
A: Journal - Journal entries are written down in a journal or book of original entry before being…
Q: QUESTION FOUR The following information relate to Asaawa Enterprise for the month of October 2021.…
A: Financial accounting is a part that includes various sets of activities like recording business…
Q: businesses along the coast of Florida. The company's management has identified business interruption…
A: The decision regarding the companies better performance and any changes in the decisions will only…
Q: Real estate tax is levied for the calendar year from Jan 1 to Dec 31 and is payable in the following…
A: Governments levy taxes as obligatory charges on persons or goods in essentially every country on the…
Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $400,000. The bonds' annual…
A: The bonds are the financial instruments that are used to raise money from the market or investors.…
Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…
A: Payroll expenses refer to the amount that an employer pays to their employees in exchange for…
Q: ifference between ABC method and conventional method
A: Solution:- The following differences between ABC method and conventional method (Traditional method)…
Q: old ministrative expenses: ses e expenses d administrative expenses come This Year 7,360,000.0 %…
A: Lets understand the basics. Common size percentage is a ratio which derive each items of the income…
Q: Jokoy Company completed the following transactions and events involving its delivery trucks.…
A: Depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic…
Q: Payments to physicians and dentists $2,290 Payment for hospital emergency room visit $3,520 $750…
A: Solution:- Calculation of medical expenses deduction if Olivas is $43,150 as follows under:-
Q: The standard rate of pay is $18 per direct labor hour. If the actual direct labor payroll was $80960…
A: Actual Direct Labour Rate per hour :— It is calculated by dividing actual direct labour costs by…
Q: Ultimo Company operates three production departments as profit centers. The following information is…
A: The departmetal contribution to overhead is the amount contributed by the department to overhead…
Q: ndiana Corporation produces a single product that it sells for $9 per unit. During the first year of…
A: The fixed manufacturing cost per unit is calculated as total fixed cost divided by number of units…
Q: The board of directors of Mesa Verde Tool Company set the profit goal for calendar year 2016 at…
A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…
Q: After the accounts have been adjusted at January 31, the end of the year, the following balances are…
A: Closing Journal Entry : Closing journal entries are passed at the end of the accounting period. In…
Q: EX 3-6 Determining wages paid 0811 The wages payable and wages expense accounts at May 31, after…
A: Wages Paid :— It is the amount of wages payable that are paid during the period. Wages Paid =…
Q: The Bottling Department of Mountain Springs Water Company had 5,300 liters in beginning work in…
A: Given, Beginning work in process is 20% complete. Ending work in process is 60% complete.
Q: Exercise 3-8 (Algo) Adjusting and paying accrued expenses LO P3 a. On April 1, the company hired an…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Exercise 14-4A (Algo) Inventory turnover LO 14-2 Selected financial information for Thornton Company…
A: Average Inventory :— It is calculated by dividing sum of beginning balance of inventory and ending…
Q: 57 units are in the ending inventory from the units that were purchased first. Beginning inventory:…
A: The question has asked to compute the value of ending inventory under the LIFO method. LIFO method:…
Q: Following are two income statements for Alexis Company for the year ended December 31. The left…
A: Adjusted trial balance is the trial balance which is prepared after the adjusting entries has been…
Q: Is this statement correct based on the form 1040 above?
A: A tax form is used by the taxpayer and all the details of the incomes and taxable incomes have to be…
Q: 6 Which of the following is not a benefit of decentralization? A. Trains future managers. B.…
A: Decentralisation means that the decision making process is not done by senior managers and lower…
Q: what are the possible causes of favourable material price variance
A: The difference between the actual price paid for materials used in production and the standard price…
Q: e conventional accounting of service business, the operating income is P120,000. The operating…
A: Given, Operating income = P120,000 Operating expenses = P150,000
Q: the end of the current year, the accounts receivable account has a debit balance of $1,955,000 and…
A: Introductions:- A doubtful debt refers to an account receivable that is likely to become a…
Q: B issued P11,000 check to pay its loan together with the interest of P1,000. The liability of B is…
A: Loan: It is the amount borrowed from bank or any person which is to be repaid after the specified…
Q: uality Service’s revenue on account is P60,000 and the cash basis is P90,000. The cost of services…
A: Capital is increased by the owner's investment made during the year, the net profit earned during…
Q: Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number…
A: Closing Entries - Closing entries are required to close the temporary accounts after making…
Q: Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing.…
A: Variance arises when there is difference between the actual costs and the budgeted costs. The…
Q: Current Attempt in Progress During March, Indigo, Inc. purchases and uses 10,900 pounds of materials…
A: Total Material Variance :— It is the difference between standard direct material cost and actual…
Q: Better Health Company has two service departments distribution of each service department's efforts…
A: The cost represents the expenses incurred by the company on the production process of the company.…
Q: Ann Reynolds has recently been hired as practice manager for Dr. LaRue. In reviewing the financial…
A: 1. A payment plan must be established prior to the start of any medical services. 2. Payment is…
Q: Current Attempt in Progress Concord Corporation purchased a 777 aircraft on January 1, 2020 at a…
A: Straight line method :— In this method, Depreciation expense is calculated by dividing depreciable…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Maple 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.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.
- Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.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.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?
- Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. 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 January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.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.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.)
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?