Calculate the contribution margin of a product for a service company if revenues are $50,000, variable expenses are $30,000, and fixed expenses are $15,000. a.) $ 20,000 b.) $80,000 c.) $35,000 d.) $5,000
Q: Sale of Receivables Hunt Incorporated sold $300,000 of accounts receivable to Gannon Factors Inc. on…
A: Businesses may turn their receivables into quick cash using factoring. This can be especially…
Q: manufacturing company prepays its insurance coverage for a three-year period. The premium for the…
A: Prepaid asset refers to an expense which is paid in advance the benefit of which however will be…
Q: n 2021 Betty loaned her son, Juan, $10,000 to help him buy a car. In 2023, before he repaid the…
A: The tax treatment of forgiven loans is primarily governed by the Internal Revenue Code (IRC) in the…
Q: Solomon Manufacturing Company established the following standard price and cost data. Sales price…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: The cash balance in Eulerich, Inc.'s, October 31 general ledger is $76,500 The October bank…
A: A bank reconciliation statement is a statement which shows the reason for difference in balance as…
Q: The following is the year ended data for Tiger Company: Sales Revenue Cost of Goods Manufactured…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: Cash DividendsSand Corporation has the following shares outstanding: 10,000 shares of $40 par value,…
A: General Journal Debit Credit a.Cash Dividends/Retained Earnings $ 200,000 Dividends Payable -…
Q: Lang enterprises was started when it acquired $4,000 cash from creditors and $6,000 from owners. The…
A: Total assets are the resources owned by the entity. These are reported on the balance sheet. These…
Q: To start his own business, Sam Wilson put $21,500 of his personal cash into the business account.…
A: Ledger:After the preparation of journal entries, we can find out the balance of every account by…
Q: The following account balances are available from the ledger of Sandhill Corporation on December 31,…
A: Financial reorganization involves restructuring a company's financial framework to address issues…
Q: Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2023 in…
A: A taxpayer who uses the cash basis declares revenue as it is received and costs as they are paid.…
Q: Determine the number of dependents in each of the following independent situations: (for example, 1,…
A: The objective of the question is to determine the number of dependents in each of the given…
Q: 1. Question 1 Illini leases another piece of equipment from Cubs Corporation under a four-year lease…
A: A lease is an agreement between two parties such as lessee and lessor where lessee allows the lessee…
Q: Assume that a $10,000, five-year, 8% term note, is issued on October 1, 20X3: what is the Journal…
A: A note can be issued by the business receiving the loan or by a financial institution. Notes payable…
Q: Connecticut Manufacturing began business on January 1. During its first year of operation,…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: All of the following companies manufacture toasters. The following costs were incurred by each…
A: Conversion costs are the costs incurred by the entity on the making of the goods. It include the…
Q: Company applies manufacturing overhead based on direct labor hours. Information concerning…
A: Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Munkord Corporation's bank statement showed a balance of $22,000 on December 31 (but before…
A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…
Q: Required information [The following information applies to the questions displayed below.] Trey…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. The cost of…
Q: imple Lights. Inc. produces Hanukkah menorahs in its Cutting and Molding departments. The…
A: In every manufacturing company there are 2 departments: the production department and the support…
Q: ted and transferred out ng Work In Process Inventory Satellite Manufacturing Placement Department…
A: Work in process refers to the cost of goods that remain unfinished. The cost of goods refers to the…
Q: Find the annotations for $165 concerning Casualty in general (look under Annotation for Code Sec.…
A: Section 165 of the U.S. Internal Revenue Code, Title 26, deals with losses. Specifically, Subpart B…
Q: Art, an unmarried individual, transfers property with a basis of $130,000 and worth $120,000 to…
A: When Art transferred the property to Condor Corporation in exchange for § 1244 stock, it was a…
Q: Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases.…
A: The marginal tax rate can be defined as the highest income tax rate applicable according to the…
Q: Sew Corporation's stockholders' equity at December 31, 2011 was $4,000,000 in total On January 3,…
A: Goodwill is an intangible asset that arises when a company acquires another company for price which…
Q: 1. Providence Corporation produces a single product and has the following cost Number of units…
A: Unit product cost refers to the expenses that are being incurred over the production of the goods…
Q: Morris Company has a daily payroll of $300 and employees are paid at the end of each week for work…
A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…
Q: Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their…
A: Taxable income:Taxable income refers to the income that is subject to tax. The Taxable income is…
Q: Pablo, who is single, has $95,000 of salary, $10,000 of income from a limited partnership, and a…
A: Modified Adjusted Gross Income ( MAGI) can be arrived at by adding exempt incomes and deductions to…
Q: Sales for the year were $586,296. Accounts receivable were $96,782 and $77,940 at the beginning and…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: The following information is from Bowin Inc. for a long-term construct project that is expected to…
A: Weighted-average accumulated expenditures is used to determine the weighted average of expenditures…
Q: Required: 1. Determine the manufacturing cost per unit for each of the products using the…
A: Activity based costing is a system of cost accounting which takes into consideration the number of…
Q: Larned Corporation recorded the following transactions for the just completed month. Purchased…
A: A journal entry is a recording of a business transaction in an accounting system. It is a formal and…
Q: Oriole Corporation issues $570,000 of 9% bonds, due in 10 years, with interest payable semiannually.…
A: Issue price of the bonds = Present value of principal + Present value of interest paymentswhere,…
Q: Balance Sheet Classification Indicate how each of the following items would be classified as of…
A: The transactions are classified in the balance sheet on the nature of transaction.A transaction can…
Q: At the end of the month, Lakeshore Company calculated equivalent units of production for the second…
A: Conversion costs are the costs incurred by the entity on the making of the goods. It includes the…
Q: Lopez and Gomez are members in an LLC that reports net income of $139,000. An agreement states that…
A: A partnership is a mutual agreement entered into by two or more entities for the purpose, of…
Q: The following transactions are February activities of Swing Hard Incorporated, which offers indoor…
A: The revenue is to be recognized as per the revenue recognition principle and the month of revenue…
Q: advanced accounting 405: A U.S. company owns an 80% interest in a company located on Mars.…
A: All foreign currency transactions should be recognized using the rate on the date of transaction,…
Q: Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer…
A: 1)unit product costAbsorptionVariableDirect materials162162Variable MOH1111FMOH(605680/4520)134unit…
Q: Cullumber Corp. designs and builds custom harvesting equipment for logging companies across Canada.…
A: The money a company receives from the selling of products and services is known as revenue. Revenue,…
Q: Case Study 1 Other Information Question 6/10 In February of 2023, during the preparation of Julia's…
A: To calculate the tax savings using special depreciation we require basis of depreciation on which…
Q: Oriole Dinner Box Inc. is a catering company that sells meal kits that its customers can take home…
A: Revenue refers to income generated from different source of the business or different activity of…
Q: Fill in the missing amounts in each of the following four case situations. Treat each case…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Part A - FIFO vs LIFO In comparing and contrasting FIFO vs. LIFO inventory procedures, the following…
A: The objective of the question is to understand the differences between FIFO (First-In, First-Out)…
Q: Prove the accuracy of your responses on the Transaction Analysis tab by selecting the account titles…
A: The financial impact of the transactions of the investments has an impactDividend on income and gain…
Q: H Company provided the following information at the end of 2016: Common stock Paid-in surplus Total…
A: Shareholders' equity is the amount of money invested by the owners in the business. It is reported…
Q: The board of directors of Ichiro Corporation is considering whether or not it should instruct the…
A: "First-In, First-Out" (also known as "FIFO") makes the assumption that the oldest goods in a…
Q: Presented below is the Adjusted Trial Balance for Kelly Clarkson Music Services. Prepare the…
A: Preparation of closing entries is a method used by the business entity to close its temporary…
Q: SKI RESORT INVESTMENT DECISION CONSTANTS 2019 2020 2021 2022 2023 2024 2025 TAX RATE…
A: The objective of the question is to calculate the financial performance of a ski resort from 2019 to…
Step by step
Solved in 3 steps
- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.if sales revenue is $35,000, fixed cost is $5,000, and net operation income is $10,000, what is the contribution margin?Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.
- If the contribution margin ratio is 55%, target operating income is $30,000, and the sales revenue needed to achieve the target operating income is $100,000, what are total fixed expenses? O A. $55,000 О В. $25,000 о с. $85,000 O D. $16,500A company has total sales of $1,000,000, variable costs of $500,000, and fixed costs of $200,000. What is the contribution margin ratio?Sheridan Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
- You are required to (i)Determine profit, when sales =200,000 Fixed cost=40,000 BEP=160,000 (ii)Determine sales, when fixed cost=20,000 Profit=10,000 BEP=40,000The 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?For Sheridan Company, sales is $2000000, fixed expenses are $900000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $700000? A. $4444444 B. $5555556 C. $2500000 D. $1944444
- A company’s contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase?A. $1,250B. $3,750C. $5,000D. $8,750If the contribution margin ratio for France Company is 43%, sales are $407,000, and fixed costs are $94,000, the operating income is a.$94,000 b.$81,010 c.$175,010 d.$64,808Contribution Margin Ratio a. Matzinger Company budgets sales of $1,150,000, fixed costs of $155,300, and variable costs of $690,000. What is the contribution margin ratio for Matzinger Company? % b. If the contribution margin ratio for Raynor Company is 39%, sales were $639,000, and fixed costs are $194,380, what is the operating income? Check My Work Previous Next