CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Direct material Per Unit Total $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead Fixed selling and administrative $200,000 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? 675 b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). 0 * garden sheds c. How much revenue is generated from selling units calculated in part (b)? $ 0 × garden sheds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Deluxe Homes is a residential Home Builder. Based on their current production of 300 homes per year, they currently make a profit of $20,000 per unit, based on the following costs per unit: Direct labor $ 20,000 Direct materials 200,000 Variable overhead 30,000 Fixed overhead 40,000 Variable selling costs 10,000 Fixed selling costs 10,000 Total costs per unit $310,000 Required Each of these are separate situations: A. Prepare an income statement based on the information provided. B. What is the profit and cost per unit if production is increased to 400 homes per year, and there is an increase of $1.50 million in total fixed overhead costs?
CVP; taxesHamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Per Unit Total Direct material $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead $200,000 Fixed selling and administrative 60,000 a. If Hamlet House wants to earn an after-tax profit of $182,000, how many garden sheds must be sold? b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?Note: Do not round until your final answer.Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). garden shedsc. How much revenue is generated from selling units calculated in part (b)? $Answer
Jack's Jax has total fixed costs of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? OA. 5,625 B. 4,445 C. 3,750 D. 3,333
Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: Per Unit Total Direct material $800 Direct labor 90 Variable production overhead 60 Variable selling and administrative cost 50 Fixed production overhead $280,000 Fixed selling and administrative 84,000 a. If Hamlet House wants to earn an after-tax profit of $254,800, how many garden sheds must be sold? Answer garden shedsb. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?Note: Do not round until your final answer.Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).Answer garden shedsc. How much revenue is generated from selling units calculated in part (b)? $Answer
Hawk Homes, Incorporated makes one type of birdhouse that it sells for $30.60 each. Its variable cost is $13.70 per house, and its fixed costs total $14,550.90 per year. Hawk currently has the capacity to produce up to 2,000 birdhouses per year, so its relevant range is 0 to 2,000 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,180 birdhouses this year. YOL
Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? a. 5,625 b. 4,445 c. 3,750 d. 3,333
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Hawk Homes, Ic., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $13.50 per house, and its fixed costs total $14,239.50 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is 0 to 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses…
Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawnmower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost.fill in the blank --- %
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