Problem 4 MAS Company's break-even sales are P528, 000 The variable costs ratio to sales is 60%, while the net income percentage to sales is 8%. Based in the above data, compute for the followin 1. Margin of Safety Ratio 2. Actual Sales 3. Margin on Safety 4. Fixed Costs 5. Net Income
Q: The owners of Blossom de Trois-Rivières hockey club are considering a deal with an older,…
A: Net present value is the net sum of all discounted cash inflows and outflows of a project or…
Q: Hopkins Company has taken a position in its tax return to claim a tax credit of $70,000 (direct…
A: According to ASC 740, a company must recognize a liability for the difference between the tax…
Q: Phoenix Company reports the following fixed budget. It is based on an expected production and sales…
A: The flexible budget is prepared to compare the actual and budgeted data of production. The…
Q: Woodland Wearables produces two models of a smart watch, the Basic and the Flash. The watches have…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Waterway Company is constructing a building. Construction began on February 1 and was completed on…
A: Avoidable interest indicates the computation of the interest amount that could be avoided if the…
Q: Problem 8-8A (Algo) Record contingencies (LO8-5) Dinoco Petroleum faces three potential contingency…
A: In order to prepare accurate financial statements and to keep correct accounting records, a full…
Q: During July, several events occurred at the Floamingo Resort. a. On July 1, a Petty Cash Fund was…
A: The journal entries are prepared to record the transactions on regular basis. The petty cash fund is…
Q: B MC Qu. 8-123 (Algo) Strikers, Incorporated sells soccer goals to customers over the... lasu,…
A: units sold = 4100 units repaired = 50 Estimated cost to repair = $110 Estimated repair under…
Q: The following information relates to the Spartan Club's checking account for the month of November:…
A: Bank reconciliation is the statement which is prepared by the entity for the purpose of reconciling…
Q: You purchased 100 shares of common stock on margin at $55 per share. Assume that the nitial margin…
A: Share trading in stock market is done on the basis of margins. Initial margin is amount of money…
Q: Darnell Ltd. acquired 60 percent of Tisha Co. The acquisition calls for Darnell to issue an…
A: Acquisition refers to the process by which one company or business entity buys or takes over another…
Q: Calculate the ending reconciled cash balance using the following information: Ending Cash per Bank…
A: A bank reconciliation statement is a summary of cash balance as per Bank and as per Books that…
Q: Give an example of accounting problem that uses margin of safety, For that problem, there should be…
A: Margin of safety is an important concept in accounting and finance that measures the degree of…
Q: Rovniak Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be…
A: Sales budget is the statement which is prepared by the entity to forecast the sales and revenue from…
Q: Beginning Ending Raw materials inventory $12,000 $ 8,000 Work-in-process inventory…
A: The cost of goods manufactured includes the cost of goods that are finished. The cost of goods sold…
Q: Jonson Inc. shows the following data for its raw material inventory used in a manufacturing process.…
A: Ending inventory is the amount of inventory in hand at the end of the period. It is the inventory…
Q: 1. Using the information above, complete the calculation of accounting ratios and percentages and…
A: Ratio analysis is a method of financial analysis that uses different ratios to assess and interpret…
Q: Using the following information, calculate the amount that would be included in Cash and Cash…
A: Cash and cash equivalents are assets that are held by a business and are readily convertible into…
Q: Give an example of accounting problem, For that problem, there should be 3 requirements or questions…
A: Accounting is an essential function for any business, as it provides insight into the financial…
Q: Tax-deferred annutes pay no taxes
A: Future value of amount include the amount that is being deposited and amount of interest accumulated…
Q: Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Shiplt Corporation reported the following rounded amounts (in millions): Accounts Receivable…
A: Ratio analysis is used to analyze the financial statement and provide information to the management…
Q: Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased…
A: Job order costing system and Process order costing system is used under cost accounting for the…
Q: Following is a statement of cash flows (indirect method) for Hartford Incorporated for the year…
A: The quantity of net revenue that remains for the company after dividend payments to stockholders are…
Q: The chart of accounts of the Wallace School is shown here, followed by the transactions that took…
A: Journal Entries - Journal Entries are the records of the transactions that an organization entered…
Q: If ABC Corp sold 4,000 units at $50 each, and cost of goods sold was $50,000, what is ABC Corp's…
A: GROSS PROFIT Gross Profit is the Difference Between Net Sales & Cost of Goods Sold. Gross…
Q: What is a static planning budget? Is it useful? Why or why not? What is a flexible budget? How does…
A: In accounting, budgeting refers to the process of creating a financial plan for a specific period,…
Q: Required: 1. & 2. By the traditional approach to measuring loss contingencies, what amount would…
A: A Liability that may or may not occur in the near future depends on the result of a specific event…
Q: ges. January 30, 2021 $ 5,825 (107,700) 110,252 For the Years En February 1, 2020 $ 4,620 (121,513)…
A: Sales return reserve is created to due to the high chances of some sales made in one accounting…
Q: You rent a retail stall in the mall for $300 a month and use it to sell T-shirts with funny captions…
A: Contribution Margin = Sales - Variable Costs Net Income = Contribution Margin - Fixed Costs
Q: TentRenters Company sets up a large event tent for the local food festival. The tent will be rented…
A: Income that has been generated via the provision of an item or service but for which no money has…
Q: Cozy, Inc., manufactures small and large blankets. It estimates $420,500 in overhead during the…
A: The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead…
Q: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the…
A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Murphy Self Storage purchased land, paying $160,000 cash as a down payment and signing a $185,000…
A: Non-current assets are assets which are held by the company for more than a year. These cannot be…
Q: On September 1, ABC Company bought goods with a list price of $20,000 terms 2/10, n/30. On On…
A: This question is related to trade credit. A company often sells its goods to its regular buyers…
Q: Give an example of accounting problem about the use of degree of operating leverage, For that…
A: Example accounting problem: A company is considering a project that would require an initial…
Q: Skint Limited has an opening bank balance of €1610 on 1 May. During May, the company makes sales of…
A: Since Skint limited is giving one month credit to all the customers, its total sale is credit sale…
Q: Spree Party Lights overhead expenses are: Indirect material, pounds per unit Indirect material, cost…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output. variable costs include…
Q: Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000…
A: The term "variable cost" refers to a cost that varies as the level of activity changes, i.e., the…
Q: Problem 8-3A (Algo) Record payroll (LO8-3) Great Lakes Tours' total payroll for the month of January…
A: The journal entry are the way of recording transaction. The business enters into various transaction…
Q: the following blood of commodity they were available for sale during the year beginning inventory…
A: Ending inventory is the amount of inventory in hand at the end of the period. It is the amount…
Q: Jane and Greg are married and file a joint return. They expect to have $520,000 of taxable income in…
A: We have, Taxable income = $520,000 Additional deduction, if residence is purchased = $104,000* Net…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Variable costing may deliver a different amount for net income than the absorption costing method.…
Q: On February 28, 2023, the partners Anna, Juan. Berto aborized the liquidation of their partnership.…
A: The cash priority program comes into existence at the time of partnership liquidation, under this…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: The variable costs can be avoided completed on the elimination of any segment. The fixed costs can…
Q: During its first year of operations, Connor Company paid $26,310 for direct materials and $18,100 in…
A: Production cost includes all expenses paid for production it means these cost are directly related…
Q: Pearl City Corporation, a publicly traded company, is authorized to issue 213,000 $4 noncumulative…
A: The retirement of treasury stock does not affect the income statement or profit and loss account. It…
Q: Data table Target ending inventory in units Metal $ Fabric $ Direct manufacturing labor $ Machine…
A:
Q: Exercise 4-3 (Algo) Recording purchases, purchases returns, and purchases allowances LO P1 Prepare…
A: Journal Entries - Journal Entries are the record of the transactions entered into by the…
Q: Required information Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8,…
A: Gross profit is the profit a business makes after subtracting all the costs that are related to…
compute the 1 to 5 question and show your complete solution/computation
Step by step
Solved in 5 steps
- Benovan Co. reports the following data: Sales (@ unit selling price of P20) Less Variable Costs Contribution Margin Less Fixed Costs Operating Profit P 840,000 546.000 P 294,000 168.000 P 126,000 Rased on the above data, the following were determined by an accounting staff: ======== Sales Breakeven Sales in Breakeven Sales in units Volume UVC VC% UCM CM% DOL pesos The manager consulted you regarding the effects of the following changes on the company's breakeven sales in units, breakeven sales in pesos, Degree of Operating Leverage (DOL) and Operating Profit. Assuming all other factors remain the same, the following independent proposals were made: 1. Increase the sales volume by 25% New Sales Volume New BES in units New BES in Pesos New Operating Profit New DOL 2. Increase the fixed costs by 10% New DOL New Operating Profit New BES in Pesos New BES in units 3. Increase the unit variable costs to P14 New Operating Profit New DOL New BES in Pesos New BES in units Based on the three…godo subject-Accounting The following information pertains to Venus Company's cost-volume-profit relationships: Break-even point in units sold = 1,000; Variable costs per unit = GHC500; Total fixed costs = GH¢150,000. How much will be contributed to profit before taxes by the 1,001st unit sold?Margin of Safety a. If Canace Company, with a break-even point at $384,000 of sales, has actual sales of $480,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 45%, fixed costs were $1,987,425, and variable costs were 55% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)$
- Margin of Safety a. If Canace Company, with a break-even point at $463,600 of sales, has actual sales of $610,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 30 %, fixed costs were $1,236,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Previous Check My Work 2 more Check My Work uses remaining.The following information is extracted from the income statement of Al Shams Private Ltd. The Price (P) per unit of product is OMR 12 and Variable cost (VC) per unit is OMR 7 and fixed operating cost is OMR 8,000.Answer the following question after analyzing the given table. YEAR 1 YEAR 2 Sales (in units) 5,000 9,500 Sales Revenue (in OMR) ? ? Less: Variable operating costs ? ? Less: Fixed operating costs 8,000 ? Earnings before interest and taxes (EBIT) ? ? Complete the table Calculate the Degree of Operating Leverage (DOL). Interpret your answer (DOL).Page 4.1 NUBD Co.’s break-even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute for the: a. Net income. b. Degree of operating leverage
- ALTHEXA companyThis problem contains 4 questions.ALTHEXA company has the following costs and revenue data for the current year: Selling price per unit P 10.50 Variable costs per unit 5.04 Total fixed costs P513,240 Operating income/(loss)before tax (10,920) Income tax rate 40% Net income or loss after tax if company has P1,155,000 in sales revenue.The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost Projected sales A P50 P34 5,000 units B 20 15 25,000 units C 25 16 20,000 units Fixed costs amounted to P154,000. Instructions: 2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?Gojo Company's break- even sales are P528,000. The variable cost ratio is 60% while the profit ratio is 8%. Compute for the following: a. Fixed cost b. Sales c. Profit d. Margin of Safety e. Degree of operating leverage
- Margin of Safety a. If Del Rosario Company, with a break-even point at $415,800 of sales, has actual sales of $540,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. b. If the margin of safety for Del Rosario Company was 35%, fixed costs were $1,931,475, and variable costs were 65% of sales, what was the amount ofF actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)ratios for Jtly. 2. From the following figures calculate a. P/V Ratio b. Break Even Point c. Sales to earn a profit of Rs. 1,20,000 Sales = 6,00,000 Variable Cost 3,75,000 Fixed Cost = 180,000 3. Describe how Management Control System is the means to analyses and control theNUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute the following: 1. Margin of safety ratio 2. Actual sales in pesos 3. Margin of safety in pesos. 4. Fixed costs 5. Net Income 6. Degree of operating leverage