Arthur crafts miniature chocolate dollhouses which he sells for $28 each. Arthur has calculated the breakeven level of revenues for his business at $998 of sales. The dollhouses have a variable cost of $12 to produce per unit. If his fixed costs double, what is the new breakeven point in units?
Q: Why are most decision makers particularly concerned about the amount of current liabilities reported…
A: A current liability is a debt that the company intends to pay off right away using resources that…
Q: The third step in process costing system is to O None of the above O O O compute output in units…
A: Process costing is one of the method which is used to allocate manufacturing costs to the…
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: Jammer Company uses a weighted average perpetual inventory system and reports the following: Units…
A: Lets understand the basics. In average perpetual inventory system basis, average cost is calculated…
Q: stock brokerage firm
A: The stock market is a market or place where shares are being brought and sold. The buyers and…
Q: counts Payable $ 40,000 Inventory 120,000 Income Taxes Payable 60,000 Land 70,000 Bonds Payable…
A: Noncontrolling interest refers to the concept of ownership when the shareholder of the company owns…
Q: 3. What do you think is needed for Muslim accountants and auditors compared with conventional…
A: Answer:- Accountant meaning:- An accountant is a professional who carries out accounting tasks…
Q: At January 31, 2021, the balance in Foster Inc.'s Supplies account was $750. During February, Foster…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. These…
Q: 73. A company entered into a contract on 1 January 20X5 to build a factory. The contract price was…
A: Percentage of completion method A long-term project or contract's revenue realization strategy is…
Q: TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.
A: Introduction: Amortization is an accounting technique that gradually lowers the book value of a loan…
Q: The hypothetical flow is one of the methods used to determine the cost of inventory and the cost of…
A: Introduction: The perpetual inventory system reveals tracking and updating inventory books after…
Q: The CJ Partnership has two equal partners, Cory and Jack.
A: As per IRS rules any capital loss can be adjusted against capital gains. With this basic…
Q: exchange. Bertoli's financial statements will be used only outside the US. Bertoli should comply:
A: Auditing is the confirmation which is made by the company when their financial statement gets a…
Q: quipment with a cost of $742,500 has an estimated residual value of $67,500, has an estimated useful…
A: With age of equipment increasing and also more use of the equipment value would decrease over the…
Q: Which of the following statements is not true about the current ratio? A benchmark of 3.00 to 1.00…
A: According to the given question, we are required to find out the correct answer from the available…
Q: n 2021, TPC Incorporated sold investment land with a $474,000 book and tax basis for $775,000. The…
A: An installment sales method is defined as the method that allows the company to receive payments in…
Q: Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by…
A: Sometimes the balance of the cash book doesn't matches with the bank statement due to several…
Q: Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the…
A: The cost of goods manufactured is the total cost of producing the goods. It includes direct material…
Q: The management accountant of Mega Ltd, a local manufacturing firm, is currently preparing the…
A: Production Budget :— This budget is prepared to estimate the number of units produced or…
Q: Pharoah Inc. issued 12900 shares of no-par common stock with a stated value of $5 per share. The…
A: A journal entry records a business transaction in the accounting system of a company. Journal…
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: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3…
A: A journal entry is used to record a business deal in the company's accounting records. The main…
Q: Maryville Inc. incurred the following costs during August: Raw materials used $ 33,100…
A: Income statement represents the net income or net loss that is calculated by deducting the expenses…
Q: Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of…
A: The fundamental principles of IAS 2 are: 1) Recognition: Items should be recognized in the financial…
Q: Which of the following expenses, if any, is/are deductible? a.Contribution to an IRA. b.Job-hunting…
A: SOLUTION:- Correct answer:- Option C is correct answer Costs involved in maintaining an office in…
Q: Accounting 1A Chapter 6- Inventories Inventory Calculations Practice Problems 11 The firm uses the…
A: Inventory Valuation - Inventory Valuation must be done using the following method - a. FIFO Method -…
Q: The owner of a building supply company has requested a cash budget for June. After examining the…
A: A company's projection of cash inflows and outflows over a certain time period is known by preparing…
Q: The debits to Work in Process—Assembly Department for April, together with data concerning…
A: Material cost is the cost incurred on the direct material during the production process. It is a…
Q: Blue, Inc., sells playground equipment to schools and municipalities. It mails invoices at the end…
A: Calculation of above requirement are as follows
Q: Ten Toes produces sports socks. The company has fixed expenses of $95,000 and variable expenses of…
A: The Break-even point is the one at which the company will have no profit and loss from the sale of…
Q: Assignment (Ignore Narrations): Enter the following in the journal entries (ignore narrations) for…
A: Since you have posted two different questions, we will do the first one for you. Please post the…
Q: Required: 1. Use the notes to determine and record adjusting entries needed on December 31 for (a)…
A: Income statement is the financial statement that records all the income and expenses of the business…
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: Satum Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star…
A: Percentage of ownership is the percentage of investment/ stocks held by the parent company in the…
Q: Use the following information to answer questions 5-20. On December 31, 2016 the following Trial…
A: An asset is a resource with economic value that an individual, corporation, or country owns or…
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: Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: cases: Case A-On July 1, 2020, Rose, Guada and Marie decided to form the Argem Company, a general…
A: As per the Honor code of Bartleby we are bound to given the answer of first question only, Please…
Q: Given the following 1. Gross Premium 2. Commission 3. Claims 4. Outstanding Claims and 5. Incurred…
A: Accounting - The process of keeping track of all financial transactions pertaining to a business is…
Q: Cullumber Company's accounting records reflect the following inventories: Raw materials inventory…
A: Lets understand the basics. Total manufacturing cost is a cost which are incurred to manufacture a…
Q: Consider the following transactions: • Paid $4,000 cash for supplies • Paid $6,000 cash in employee…
A: The cash basis of accounting records the income as and when they are received and records the…
Q: Number of days past due Toot Auto Supply distributes new and used automobile parts to local dealers…
A: Number of days past due: The number of days past due means the number of days since the original due…
Q: owner of a parcel of eal estate entered into a ten vear lease
A: In Accounting [ Accrual Basis] we recognise income when it accrues regardless of its…
Q: Complete the following using present value. (Use the Table 12.3.) Note: Do not round intermediate…
A: The question is based on the concept of Financial Management. Present value of the future value can…
Q: Question 2 of 5 Costing system, which classifies cost into cost categories based on when an expense…
A: PROCESS COSTING SYSTEM Process costing is a method wherein the products go through two or more…
Q: A donor making a gift to a related party receives a miscellaneous itemized deduction for the amount…
A: According to the gift's value and the relationship between the giver and the recipient, there might…
Q: The approach that requires the transfer price to be less than the market price but greater than the…
A: Standard cost is the cost that has been fixed by the company at the beginning of the period.…
Q: Describe how the times interest earned ratio is used to evaluate a company’s financial condition
A: Times interest earned ratio also known as interest coverage ratio is a solvency ratio. It measures a…
Q: Julie, a teacher, creates home decor as a hobby and occasionally sells it to family and friends. She…
A: Gross income of Julie's for computation of Gross income deduct the cost related to supplies from…
Q: Product costs in the manufacturing company include: Raw materials, work in process, and finished…
A: Lets understand the basics. Product cost means a cost which are incur to manufacture a product.…
Arthur crafts miniature chocolate dollhouses which he sells for $28 each. Arthur has calculated the breakeven level of revenues for his business at $998 of sales. The dollhouses have a variable cost of $12 to produce per unit.
If his fixed costs double, what is the new breakeven point in units?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The owner of a car wash wants to increase his Revenue. He decides to reduce his price by $2.00. Currently he charges $10.99 for the Deluxe Car wash. In a typical week he sells 70 deluxe car washes. He knows from previous experience his sales will increase to 110 deluxe car washes per week. The other variable costs per car wash are $1.99 which includes all chemicals and labour costs. What percentage must his sales increase by to maintain his current Contribution ? 28.6% 28.2% 30.5% 32% None of these are correct or cannot be determined D View FeedbackJuniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. The company’s fixed costs total $6,660.How many units must Juniper sell to earn a profit of at least $5,400?Carondelet Coffee has begun making and selling pastries. The fixed costs of making the pastry are $4,000, and the company estimates that the variable costs are $.75 per pastry. How many pastries does Carondelet have to sell to earn net income of $5,000 if it sells each pastry for $3 apiece?
- Sara sells hats for children. She is able to sell at OMR 18 per unit. Materials for the hats cost OMR 4. Fixed cost is OMR 280. She sells 80 hats each month. What is her profit?Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.Juan Fox’ has started her own company, Foxy Jeans, which manufactures imprinted jeans. Since he just begun this operation, he rents the equipment from a local printing shop when necessary. The cost of using the equipment is P3,000. The materials used in one jean cost P200, and he can sell it at 350. Requirements: Provide for a mathematical model that will show how to maximize the profit. IF Juan sells 100 jeans, what will his total revenues, total costs, and profit? How many jeans must Juan sell to have zero profit and zero loss (break-even)?
- The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount toYerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price is $120 and the variable expenses are $90 per unit. For tree houses, the price is $200 and the variable expenses are $100. Total fixed expenses are $253,750. Next year, Yerke expects to sell 12,000 gyms and 8,000 tree houses. What is the total sales revenue at the break-even point? a.$411,250 b.$140,000 c.$665,000 d.$253,700 e.$1,076,250Thomas and Theresa work for a company that receives $75 for each unit of output sold. The company has a variable cost of $30 per item and a fixed cost of $12,000.Based on this information, Thomas and Theresa make some projections about potential profit.Thomas states that for every 500 units of output sold, the company will make $11,000 in profit.Theresa states that for every 800 units of output sold, the company will make $24,000 in profit.Determine a function that models the profit for the company based upon the conditions for revenue and expense.Are the claims about profit that Thomas and Theresa made true? Explain why Thomas and Theresa are each correct or incorrect and justify your reasoning.
- Matt wrote a book and wants to sell it for $24.95 per copy. He estimated that he will need to sell 2,500 books to break even on his $4,200 investment. What is the variable cost per unit assumed in Matt’s analysis?Henry Sweet Company currently makes 6-inch candy sticks that it sells for $0.20 each. Henry can make 12-inch candy sticks out of two 6-inch candy sticks by melting them together, which costs an additional $0.03 per 12-inch stick. Henry can sell the 12-inch sticks for $0.45. Henry has enough capacity to make 10,000 6-inch candy sticks per month, and enough demand to sell all of the candy sticks it can manufacture, whether 6- inch or 12-inch. Should Henry sell 6-inch or 12-inch candy sticks, and how much additional profit will its decision bring in per month? Multiple Choice O O Sell 6-inch sticks, additional $100 Sell 6-inch sticks, additional $250 Sell 12-inch sticks, additional $100 Sell 12-inch sticks, additional $250Bill Prichett’s store makes and sells small pottery items which are sold at $10 per item. Fixed cost for the store is $1000 and the variable cost per item is $5. (a) Find the break-even quantity. (b) How many items should the store make to realize a profit of $25000? revenue of $25000? (c) What is the break-even quantity if Bill wants to earn a salary of $15000?