Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ 450 Variable cost of each window installation $ 250 Annual fixed costs $ 175,000 40% Tax rate Calculate the number of windows Best Windows must install and the revenues needed to earn a target net income of $72,000. ………. Finally, calculate the revenues needed to earn a target net income or 3/2,UUU. Select the formula labels, then enter the amounts and calculate the revenues needed.
Q: E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and…
A: Contribution margin takes into consideration only variable expense while net income takes into…
Q: 1. Compute cost of goods available for sale and the number of units available for sale.
A: The cost which has been incurred on goods that are available for sale is known as cost of goods…
Q: Differentiate between an “unqualified report” with an “adverse report”
A: An audit report is a formal document prepared by an independent auditor or auditing firm after…
Q: Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the 8300 and the T500. An…
A: Predetermined overhead rate Is computed as Estimated overhead divided by estimated direct labor…
Q: Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The…
A: A replacement decision refers to the process of evaluating and deciding whether to replace or…
Q: On October 1, 2020, Croatan Corporation finalized its plans to discontinue operations of its retail…
A: A Particular division in an organization which the management of organization decides to sell due to…
Q: Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost…
A: Revenue and spending variances are those which shows the difference between the estimated revenues…
Q: ! Required information [The following information applies to the questions displayed below.] Eva…
A: The tax liability is determined by the taxable income. The filing status and the amount of taxable…
Q: Please do not give solution in image format thanku Find the rate. Assume a 360-day year. Time…
A: Time value of money includes future value and present value concepts. There are two methods of…
Q: Question 5 Bank statement received by Nurul Enterprise showed differences in balances between the…
A: Ideally cash balance as per books and bank balance as per bank statement must reconcile with each…
Q: Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the…
A: Perpetual inventory system is a method of inventory where the inventory and cost of goods sold is…
Q: The following information is available to reconcile Branch Company’s book balance of cash with its…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…
Q: This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a…
A: Taxable income refers to the portion of an individual's or entity's income that is subject to…
Q: Jack Kentson works a 40-hour week with overtime paid at 11⁄2 times his regular rate of pay of…
A: Regular working hours means number of hours for which employees will work normally. Overtime hours…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Kevin Kurtz is a newly hired exempt employee who earns an annual salary of $67,600. Since he started…
A: Wages is expense for an organisation. It is shown in income statement or trading account. Salary is…
Q: eroblem 2. ABC Company makes key chains. The total cost to make 1,000,000 key chains is as follows:…
A: A make-or-buy choice is an act of deciding whether to manufacture a product in-house or to purchase…
Q: Quality Cost Report Evans Company had total sales of $1,500,000 for fiscal 20x5. The costs of…
A: Total Cost of Quality is a technique for defining and quantifying the amount of natural assets a…
Q: Splish Company received the following selected information from its pension plan trustee concerning…
A: Answer:- Defined benefit plan:- A pension plan with a defined benefit is one in which the pension…
Q: Sandhill Inc. uses the FIFO cost formula in a perpetual inventory system. Jul 1 Jul 7 Jul 8 Jul 9…
A: According to FIFO, it is assumed that the items purchased or produced first are the ones sold or…
Q: Sheridan Motors is a division of Sheridan Products Corporation. The division manufactures and sells…
A: Variable Costing -Under the Variable Costing method, all the variable costs are considered while…
Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new…
A: Variable Costing -Under the Variable costing method of costing all the variable costs are considered…
Q: Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An…
A: Traditional Costing is method of cost allocation of overheads in which costs are allocated using the…
Q: In preparing its interim financial reports for the quarter ending March 31, 2023, TRIGO Company…
A: Net sales is the sales revenue after taking all returns and discounts. Cost of goods sold is actual…
Q: Mountain Air Limited manufactures a line of room air puntlers. Management is currently evaluating…
A: A make-or-buy choice is one in which a product is either internally manufactured or purchased from a…
Q: Abel works a 371⁄2-hour
A: ParticularsHoursAbel's weekly hours [a]37.50Overtime hours per week [b] 6.00Total working hours per…
Q: Net income for the year 2019 was $15,000. Accounts receivable increased $12,000, inventories…
A: Statement of Cash Flow -Statement of Cash Flow includes inflow and outflow of cash during the…
Q: In gathering evidence to conduct an audit, it is important for the following information:…
A: The evidences or in other words the supporting documents are required for each work of audit is…
Q: On January 1, $54,000 cash is borrowed from a bank in return for a 8% installment note with 24…
A: Notes payable is one of the liability being incurred in business. There can be long term or short…
Q: The accounting records of Wall's China Shop reflected the following balances as of January 1, Year…
A: Inventory Valuation Methods are methods of valuation of inventory.There are three methods of…
Q: Mullins Corporation uses the FIFO method in its process costing system. Data concerning the first…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: A firm's long term debt to equity ratio is 2.5:1. The total assets in the firm are valued £36…
A: The current ratio refers to the ratio that is to be computed by the numerator as current assets and…
Q: Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based…
A: The pre-determined overhead is calculated as total overhead costs divided by the estimated base…
Q: month, 5 lbs of raw materials (worth $50) remain unused. 50 units were in process ($3 material cost…
A: Backflush costing is a type of product costing method used by manufacturing companies. It is based…
Q: Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An…
A: Predetermined overhead rate Is computed as Estimated overhead divided by estimated direct labor…
Q: Current Attempt in Progress Using these data from the comparative balance sheets of Ivanhoe Company,…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the Important analysis techniques of financial…
Q: Variable Medical Services Department costs are budgeted at $56 per employee. Fixed Medical Services…
A: Variable cost :— It is the cost that changes with change in activity of cost driver used. Variable…
Q: Bailey manufactures dolls and estimates sales of $120,000 for November, $100,000 for December, and…
A: Cash budget is one of the important form of budget being prepared in business. This shows all cash…
Q: How have the jobs of management accountants changed in the last 10 years? How has information…
A: Management accountants now play a more prominent role in strategic planning and decision-making…
Q: What is the total of consolidated revenues at December 31, 2021? Answer Options: $4,920,000…
A: There are multiple sub-parts and only first three sub-parts are solved. The reason behind is our…
Q: Sultan Company uses an activity-based costing system. At the beginning of the year, the company made…
A: ABC provides transparency by showing how costs are distributed across different activities or…
Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…
A: Income Statement -An income Statement is a financial statement that includes Revenue earned and…
Q: he purpose of depreciation expense
A: Depreciation is a measure of wearing out of assets from its use efflux over time or obsolete through…
Q: 4. The company has stocks of raw materials Cost 14.000. During the financial year it purchased Raw…
A: Raw materials is one of the important element of inventory of business. Closing stock can be…
Q: Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility…
A: If the investigation is made related to the existing business then the investigation expenses are…
Q: Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity,…
A: Contribution margin is difference between selling price and variable cost. After deducting fixed…
Q: The total estimated manufacturing overhead of $260,000 was comprised of $160,000 for materials…
A: Activity-based costing is a costing approach in which a company's activities are identified and the…
Q: The Rock Inc. has the following Trial Balance as of December 31, 2023. Use this Trial Balance to…
A: Balance sheet is one of important financial statement being prepared in business. This is also known…
Q: The following information is available for the employees of Webber Packing Company for the first…
A: Net pay is the amount of money that an employee receives after deductions such as taxes, Social…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
- Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 18 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? B. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? complete this question by entering your…Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. Sales price $ 21 per unit Variable costs 7 per unit Fixed costs 27,000 per month Assume that the projected number of units sold for the month is 7,000. consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? B. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? d. suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? complete this question by entering your…
- Download and fill out the Section 5 Comprehensive Problem Template attached below to complete the problems (ignore question 5-2 as this applies to the "combined accounting and finance" course). Problem 5-1 Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40. Required: a. Compute the breakeven point in units. b. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.) c. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit. d. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.) e. Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.) f. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by…On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The bags have the following characteristics. Programmer Executive Selling price per bag $ 70 $ 100 Variable cost per bag $ 30 $ 40 Expected sales (bags) per year 8,000 12,000 The total fixed costs per year for the company are $819,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. If the product sales mix were to change to nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?Calculate the number of helmets Head-First must sell to earn operating income of $81,900. _____________helmets Refer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the number of helmets Head-First must sell to earn operating income of $81,900. 2. Check your answer by preparing a contribution margin income statement based on the number of units calculated
- A Company wants to introduce new product. The estimated price of each mobile phone is RO 60. The company requires a profit margin of 20% on sales. The estimated cost of manufacturing the product is : Material cost : RO 9.500 Labour Cost : RO 12.750 Other Direct Expenses : RO 7.500 Administrative Costs : RO 5.000 Marketing and Selling expenses : RO 15.000 Calculate the Target Cost of the product and the Target Cost Gap.Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
- A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.Use the following data to solve problem #2: - Fixed costs $2,500 - Variable cost per unit $1.00 - Selling price per unit $6.00 - Run a simulation for production runs in increments of 100 (run 15) - At what production level in the company profitable - What is the amount of profit? - What is the maximum profit under these conditions - Show all work on a spreadsheetMadlock, Inc. sells a product with a contribution margin of $10 per unit. Fixed costs are $1,800 per month. How many units must Madlock sell to break even? Begin by showing the formula and then entering the amounts to calculate the units Madlock must sell to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. Enter a "0" for items with a zero value.) Target profit ) = Fixed costs ▼ + + HH CM per unit TOD Carmen Required sales in units