Zippy Quadcopters plans to sell a standard quadcopter (toy drone) for $40 and a deluxe quadcopter for $60. Zippy purchases the standard quadcopter for $20 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $25,200. How many of each type of quadcopter must Zippy sell monthly to breakeven? To earn $15,600? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) Breakeven sales in units
Q: Barney Stinson, a legal advisor at Goliath Bank, is under intense pressure at work to ensure that…
A: Target profit = $250,000 Target contribution margin = Target profit + Fixed cost Contribution…
Q: Assume that company makes only two products: Product A and Product B. The company’s activity-based…
A: Solution: Total nos of setup hours = Total nos of setup of product A * Nos of setup hours per setup…
Q: PR 10-2A Comparing three depreciat Dexter Industries purchased packaging equipment on January 8 for…
A: Depreciation expense is the non-cash expense. It is reported in the income statement as an expense.…
Q: Question 5 of 5 X Costing method, which calculates per equivalent unit cost of all production from…
A:
Q: A company that produces a single product had a net operating income of $84,000 using variable…
A: There are two types of costing methods: variable costing and absorption costing. The company chooses…
Q: Calculate a markup matrix for next year's models. Select the correct choice below and, if necessary,…
A: It has been given for the current year regarding the prices of the cars at both ends which is at the…
Q: APOLONIO died leaving the following properties: • 2,500 shares of stocks of ABC Corporation, listed…
A: Gross estate refers to all of the assets used to calculate whether an estate is subject to federal…
Q: The slope of the cost line on a graph represents: a) variable cost per unit. Ob) total fixed cost.…
A: Answer:- Variable cost meaning:- An expense for the company that varies according on how much is…
Q: Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are…
A: Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…
Q: CHP finds out on May 10th that Customer W's account receivable for $1,000 from services provided…
A: Accounts receivable is an asset for the firm which represents an amount due from a customer.…
Q: Headland Woodcrafters sells $233,600 of receivables to Commercial Factors, Inc. on a full guarantee…
A: Journal entries serve as the official record of all business activities. In the widest definition, a…
Q: Coronado Industries incurred the following costs to produce 100000 units: Variable costs $690000…
A: Let us assume Total cost incurred if we purchase from outside supplier = C
Q: Mannassass Company manufactures chairs. The following information was given for the company: Units,…
A: Equivalent units are the units completed by the company in the production process of the company. It…
Q: Credit unions are Group of answer choices not providers of insured deposits. mutual associations.…
A: Introduction: Usually unions are financial organizations that are arranged in a cooperative model.…
Q: The board of directors of an entity approved a share option plan for key executives. On January 1,…
A: Given: - Number of share options granted= 200,000 Fair value= P6 Period= 3 years
Q: Identify the inventory system used by the business. How can you tell? ii) Prepare the necessary…
A: Inventory system for the recording of the purchases and the cost of goods sold is the method through…
Q: On January 1, Ivanhoe Corporation had 91,000 shares of no-par common stock issued and outstanding.…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: P6.1 (LO 1), AN Lanza SA had a bad year in 2019. For the first time in its history, it operated at a…
A: Break even is the point at which the entity is in a situation of no profit, no loss. It is the…
Q: On December 31, 2016 the following Trial Balance was extracted from the books of Jona Willis.…
A: Net Book Value at the end of the Year means Book Value at the beginning of the Year - (Depreciation…
Q: Socks Unlimited produces sports socks. The company has fixed expenses of $85,000 and variable…
A: CONTRIBUTION MARGIN Contribution margin per unit is computed by deducting Total Variable Cost per…
Q: The real risk-free rate is 2.50%. Inflation is expected to be 2.00% this year and 4.75% during the…
A: Given Information: Real Risk free rate (r) = 2.5% Maturity Risk Premium (MRP) = 0 Inflation this…
Q: Exercise 9-3A Recording sales tax The University Book Store sells books and other supplies to…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: formation applies to the questions displayed below] Trey has two dependents, his daughters, ages 14…
A: Income Tax - Governments at the federal, state, and municipal levels all levy tax on the gross…
Q: Jhoza Jacob owns and operates the "Dyosa Designs", an interior design studio. The following…
A: Accounting Equation :— It is the relationship between assets, liabilities and owner's equity.…
Q: Deemer Corporation has an activity-based costing system with three activity cost pools--Processing,…
A: Activity-based costing refers to the concept of assigning all the expenses involved in producing…
Q: 1. Caden visits a bank and wanted to borrow some money to start for a printing press business. He…
A: SIMPLE INTEREST Simple Interest is the easy & Quick method of Calculation of Interest…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160,…
A: Lets understand the basics. Traceable overhead is a overhead which can be traced on the product. In…
Q: Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product…
A: ACTIVITY BASED COSTING A powerful tool for measuring performance, Activity-Based Costing (ABC)…
Q: The allowance for doubtful accounts is presented in the financial statements as: O a Ob Oc Od A…
A: Allowance for doubtful accounts: It is the amount set aside as a charge against profit to meet any…
Q: Assume a company that uses activity-based costing (ABC) has only two products – A and B. The company…
A: Solution: Overhead cost of setup activity cost pool = Total nos of setups * activity rate per setup…
Q: Weighted Average Method, Single Department Analysis, Uniform Costs Hatch Company produces a product…
A: A production report provided as a dashboard aids in keeping track of the most important KPIs from a…
Q: WEELER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Merchandise…
A: (a) Weller CompanyStatement of Cash FlowsFor the Year ended December 31, 2010 Cash flows from…
Q: The CEO of XYZ company has $1 million to spend to improve the company's operations. Although the…
A: Introduction: There are many ways to improve the existing business or starting a new business.…
Q: Geisel, Incorporated reported net sales revenue of $523,000 in 2021 and $625,000 in 2022. The…
A: The ratio analysis helps to analyze the financial statements of the business. The account…
Q: Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock;…
A: T - ACCOUNT T - Account is a Summary representation of all journals entries into Journal Ledgers.…
Q: 2. Alexander borrows P50,000 from Caden. Caden offers him two options for the interest: a. Ordinary…
A: As per the given information: Amount borrowed - P50,000 Two options offered for the interest:…
Q: A Company produces a ungle product which sells for $20 per unit. Vanable Cost is $15 and feed cost…
A: Given, Selling price per unit = $20 per unit Variable cost per unit = $15 per unit…
Q: Calculate the break even point for the sales mix , both in peso and in units. Product A: Selling…
A: In several aspects of commerce and finance, a break-even point is an important concept to…
Q: The Markert Company won a contract to build a shopping center at a price of $300 million. The…
A: Income Statement: - Income statement is the summary of a company's revenues and expenses over a…
Q: E3-4A.R & D Ci.has the following accounts in its ledger Cash; Accounts Receivable; Supplies;…
A: Journal entries are posted below as per the requirement at the beginning of the question. Date…
Q: ure is an exam
A:
Q: 12. Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a…
A: The entire return anticipated on a bond if it is kept to maturity is known as yield to maturity…
Q: Dick's Draperies has gross sales $15,000 per month, half of which are on credit (paid with 30 days).…
A: Cash Flow statement shows the cash inflows and cash outflows of a company. Cash inflows are mainly…
Q: accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two…
A:
Q: Question Answer Sparks Furniture Company carries three lines of sofas. Information about the sofa…
A: In general, the cost principle is used to determine how assets are stated in the financial…
Q: 13. Statutory employees: a.Claim their expenses as deductions for AGI. b.Report their expenses as
A: Statutory employees refers to an independent contractor who is considered as an employee in order to…
Q: a) Determine the amount of each distribution that is from current E&P, accumulated E&P, Return of…
A: SOLUTION;- JANUARY 01- IMAGINE NATION CORPORATION HAD ACCUMULATED EARNING&PROFITS - 50000$…
Q: Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for…
A: Consolidated statement is a financial statements of an entity with subsidiary or multiple…
Q: Instacart Inc. needs 30,000 square feet of usable office space. There’s an office building in prime…
A: The landlord can rent their space on a pro-rata basis. The tenants are required to pay rent only for…
Q: Liquid assets are held in order to Group of answer choices make everyday transactions. build…
A: Liquid assets are those current assets which can be easily liquidated into cash. It includes cash,…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Rapido Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $75. Rapido purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $21,600. How many of each type of quadcopter must Rapido sell monthly to breakeven? To earn $12,600?Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $55. Rally purchases the standard quadcopter for $25 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $23,100. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $15,400? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) ( Operating income Fixed expenses >/Weighed-avg. CM per unit Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Standard Deluxe Total Sale price per unit Deduct Variable expense per unit 45 35 55 30 Contribution margin per unit Sales mix in units Contribution…Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $64. Racer purchases the standard quadcopter for $34 and the deluxe quadcopter for $44. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $18,000. How many of each type of quadcopter must Racer sell monthly to breakeven? To ean $12,000? First Identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) Fixed expenses Operating income Weighed-avg. CM per unit = Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Standard Deluxe Total Sale price per unit 54 $ 64 Deduct: Variable expense per unit Contribution margin per unit (34) (44) 20 $ 20 Sales mix in units 3…
- Racer Quadcopters plans to sell a standard quadcopter (tay drone) for $45 and a deluxe quadcopter for $65. Racer purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $9,800 How many of each type of quadcopter must Racer sell monthly to breakeven? To earn $10,500? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg=average, and CM contribution margin) Breakeven sales in unitsSteve's scooters plans to sell a standard scooter for $160 and a chrome scooter for $200.00. Steve's purchases the standard scooter for $40 and the chrome scooter for $50. Steve expects to sell one standard scooter for every three chrome scooters. Steve's monthly fixed costs are $102, 600. How many of each type of scooter must Steve's scooters sell each month to break even?Skippy's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Skippy's purchases the standard scooter for $125 and the chrome scooter for $150. Smartie expects to sell one standard scooter for every three chrome scooters. Skippy's monthly fixed costs are $158,125. Requirements 1. How many of each type of scooter must Skippy's Scooters sell each month to break even? 2. How many of each type of scooter must Skippy's Scooters sell each month to earn $218,500? Requirement 1. How many of each type of scooter must Skippy's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Required sales in units + + )/
- Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $572,000 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $715,500. Requirement 1. How many of each type of scooter must Stevie's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products—total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) ? ? ? ? ( Fixed costs + Target profit ) ÷ Weighted-avg. CM per unit = Required sales in units ( + ) ÷ = Requirements Dialog…Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. Crane, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $28. What would be the new contribution margin per unit if managers switched to the new supplier? What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)
- Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)Saved Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 16,000 units and 36,000 units per month. The new toy will sel for $3.00 per unit. Enough capacity exists in the company's plant to produce 19,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.00, and incremental fixed expenses associated with the toy would total $27,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 21,000 units. For a production volume between 21,001 and 41,000 units the fixed fee would increase to a total of $40,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. 2. How much profit will Neptune earn assuming: a.…Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are s18.000. Coyote Corp. has offered to buy 1.000 widgets at $4 each. On this information alone, should Micro accept the offer? A. No, because it will ose $1 per unit B. No, because it will lose $2 per unit C. No, because it will exceed capacity D. Yes, because it makes $1 per unit in the short run E. Unable to determine