The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
Q: Problem 7-3 Calculating Break-Even In each of the following cases, find the unknown variable. Ignore…
A: Accounting break even is calculated by dividing sum of fixed and depreciation by contribution…
Q: In 2021, it was discovered that a company had debited expense for the full cost of an asset…
A: Depreciation:Depreciation refers to the continuous reduction in the depreciable value of depreciable…
Q: Cardinal Company is considering a five-year project that would require a $2,765,000 investment in…
A: Actual Annual cash inflows = Sales - Variable expenses - Fixed out of pocket expenseNet present…
Q: Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal…
A: The action to document and summarize financial transactions related to the selling of goods or…
Q: Daosta Inc. uses the FIFO method in its process costing system. The following data concern the…
A: The cost per equivalent unit is computed by preparing the cost report through which the total…
Q: The manager of the main laboratory facility at UrbanFit Center is interested in being able to…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Q3a: Based on Figure 3 information produce a cash flow forecast for Amna's business. Q3b: Identify…
A: Cash BudgetThe estimates of cash received and cash payments for future accounting periods are based…
Q: Required: Assuming an income tax rate of 25% and 2024 income tax payable of $930,000, prepare the…
A: Deferred tax refers to the temporary differences between taxable income reported for tax purposes…
Q: 1. Use the accounting equation to compute the missing financial statement amounts. 2. Use the…
A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityThis…
Q: On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK…
A: Income tax due refers to the amount of tax that an individual or business owes to the government…
Q: Closing Trial Balance June 30 Cash Investments Fund Balance-Restricted Budgetary Fund Balance…
A: Debt service fund:Debt service fund is a fund used by the government authorities or entities to…
Q: Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory,…
A: The Schedule of Cost of Goods Manufactured is used to compute the cost of producing goods for a…
Q: Alvarado Company produced 6,200 units of product that required 2.5 standard direct labor hours per…
A: The objective of this question is to calculate the variable factory overhead controllable variance…
Q: A condensed income statement by product line for Crown Beverage Inc. indicated the following for…
A: Differential effect on net income is the difference of net income on continue Royal cola and net…
Q: The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal…
A: Dividend:When a company gives to its shareholders a reward, cash or otherwise then it is referred as…
Q: dot image plas.1
A: The objective of the question is to calculate the life insurance death benefit payable to Charlene,…
Q: Problem 6-7A Gross profit comparisons and cost flow assumptions-perpetual LO2, 3 Ontario Skateboard…
A: Types of Inventory Valuation Methods: First In, First Out (FIFO) Last In, First Out (LIFO) Weighted…
Q: Comprehensive Problem 3-1 Gordon Temper is a single taxpayer (birthdate July 1, 1986 and Social…
A: In order to finalise Gordon's federal income tax return for 2023, we will adhere to the guidelines…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: To prepare Lavage Rapide's flexible budget for August, we'll calculate the expenses based on the…
Q: [The following information applies to the questions displayed below.] Julio and Milania are owners…
A: Ordinary income is the amount received from ongoing operations prior to income taxes, minus the…
Q: Office Supply House purchases 4,160 reams of paper per year, ordered in lots of 80 reams per week at…
A: An organization's optimal order amount that meets demand and lowers total costs associated with…
Q: Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: Blossom Company purchased a delivery truck for $48,000 on July 1, 2025. The truck has an expected…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Shelley Company bought 3,000 pounds of materials for $2. 1,000 units of output. Direct labor costs…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the…
A: To determine the total compensation cost pertaining to the restricted stock and prepare the…
Q: In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1…
A: The treasury stock includes the own shares of the company purchased from the shareholders. The…
Q: When does the capital of a company increases? A. Drawings Decrease B. Liabilities Decrease C.…
A: Financing refers to the methodology of raising money or capital by a business using various forms…
Q: Blue Spruce Corporation purchased 300 common shares of Burke Inc. for $22,830 and accounted for them…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: Activity variance is the difference between a flexible budget and planning budget while spending…
Q: Total cash receipts Total cash disbursements 1st Quarter $ 250,000 $ 309,000 2nd Quarter $ 400,000 $…
A: Cash Budget: It is the predetermined flow of cash which is going to happen within the entity like…
Q: The following information pertains to JAE Corporation at January 1, Year 2: Common stock, $10 par,…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Selected balance sheet information and the income statement for Pioneer Industries for the current…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Rodriguez Company pays $368,550 for real estate with land, land improvements, and a building. Land…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for…
A: Depletion means the fall in value of reserve when some reserves has been extracted from mines.…
Q: P8-6 Part 2 2. For each of these the assets Involved in transactions (a) through (f), record the…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: A company had the following assets and liabilities at the beginning and end of this year. Beginning…
A: Common stock is taken by those people who want to invest in the stock market or public exchange and…
Q: Stan and Stella are married and own a home insured for $250, 000 (Coverage A limit) under an…
A: Calculate the windstorm deductible :- Windstorm deductible = 2% of Replacement…
Q: Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a…
A: Journal Entries - Journal Entries are the record of transactions of the organization. It is recorded…
Q: Required information [The following information applies to the questions displayed below.] JFI Foods…
A: Cost accounting is widely used by cost accountants and managements to calculate the cost per unit of…
Q: Case D Tompkins Company reports the following Inventory record for November. Date November 1…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two…
A: Direct costs are the expenses that are directly used for the production of goods and services for…
Q: Spotted Potato is evaluating a project that would require the purchase of a piece of equipment for…
A: To calculate the tax rate in year 1, we can use the formula for relevant operating cash flow…
Q: The following information is available for Carla Vista Corporation for 2025. 1. 2. 3. Depreciation…
A: if a company recognizes revenue for accounting purposes in one period but for tax purposes in a…
Q: Cullumber Resellers Ltd. (CRL) sells gently used and refurbished appliances. The company provides a…
A: Journal entries are used to record all the financial transactions in a business. It helps to know…
Q: At January 1, 2023, Carla Vista Limited's outstanding shares included the following 294,000 $50 par…
A: Weighted Average Number of Stocks Outstanding is the number of shares outstanding over a reporting…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue variance results due to the difference that arises between the actual sales made and the…
Q: . What is the allowable MACRS depreciation on Convers's property in the current year assuming…
A: MACRS Depreciation -The Modified Accelerated Cost Recovery Scheme (MACRS) is the current tax…
Q: The use of inventory information to improve stock control procedures is an example of intangible…
A: Inventory refers to the goods and accoutrements held by a business for the purpose of resale,…
Q: Current Attempt in Progress The following stockholders' equity accounts, arranged alphabetically,…
A: The ownership stake that shareholders have in a corporation is shown in the balance sheet's…
Q: On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK…
A: Answer:- Employees who get restricted stock as part of their executive salary are given…
Step by step
Solved in 3 steps
- Given the following information, find number of customers: Profit, $33,603; sales price per unit, $17.00; fixed costs, $97,197; contribution rate, .6Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 20,000 T-shirts at $19 each in the coming year. Product costs include: Direct materials per T-shirt $6.65 $1.33 Direct labor per T-shirt Variable overhead per T-shirt $0.57 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.95 per T-shirt; fixed selling and administrative expenses total $13,000.Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00
- APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company's product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a per-unit basis.…Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income taxBlossom Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $400 $320 $24,000 600
- Compute the contribution margin ratio and fixed costs using the following data. Sales $ 4,500 Variable costs $ 2,925 Income $ 550Compute the contribution margin ratio and fixed costs using the following data. Sales $5,200 Variable costs $3,016 Income $ 420 Contribution margin Numerator: Fixed Cost Contribution Margin Contribution Margin Ratio Denominator: = Contribution Margin Ratio Contribution margin ratio 0The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:
- Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratioA business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the contribution margin percentage? (Answer the figures only; two decimal places)A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?