Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions: Required: What is the break-even point in units? What unit sales would be required to earn a target profit of $200,000? Assuming Halifax achieve the level of sales required in part b, what is the margin of safety in sales dollars?
Q: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 600,000…
A: The dividend is the sum of the amount paid by the company to its stockholders, out of profit. In…
Q: Ecker Company reports $1,975,000 of net income and declares $276,500 of cash dividends on its…
A: Earning per share is return per share given by company to its investors. Basic earnings per share =…
Q: Sweet Tea by the Gallons (STG) has an older piece of equipment that potentially needs to be replaced…
A: Differential profit for purchasing the new equipment = Savings in repair expense + Net revenue from…
Q: A corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000…
A: Dividend is the amount of return which is paid to the shareholders of the entity. It is paid out of…
Q: The president of Normolle Mfg. Co. which manufactures only one product, requests an analysis of the…
A: Gross profit is the first profit related line item in an income statement. Gross profit is the sales…
Q: Compute the maturity value as indicated for each of the following notes receivable. (Use 360 days…
A: maturity value is the Amount of money that is due and will be payable on the maturity of any…
Q: Sales revenue Variable expenses Fixed expenses Net operating income $800,000 540.000 173,000 $87,000…
A: Variable cost per unit remains same and varies in total with production while fixed cost remains…
Q: My Pleasure (MP) had total invested assets of $400,000 for the year. Using those assets, they…
A: Investment Turnover :— It is calculated by dividing total sales by invested assets. Investment…
Q: On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is…
A: Note payable means the instrument which is issued by company acknowledging the debt due by company…
Q: The stockholders' equity accounts of Cyrus Corporation on January 1, 2022, were as were as follows.…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: July Tree Ltd sold ar
A: Depreciation is the reduction in the value of an asset on account of its wear and tear.
Q: a. Depreciation on the company's equipment for the year is computed to be $11,000. b. The Prepaid…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: A company had net income of $244,839. Depreciation expense is $20,103. During the year, Accounts…
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…
Q: Use the following bank statement and T-account to prepare the May 31 bank reconciliation. BANK…
A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…
Q: The cost of an asset is $1,170,000, and its residual value is $110,000. Estimated useful life of the…
A: Depreciation is nothing but an expense that reduces the value of a fixed asset. A fixed asset goes…
Q: Sheridan Co. started and completed 1,840 units for the period. Its beginning inventory is 736 units…
A: Process costing is one of the cost accounting technique being used in business. It uses where…
Q: any just beg pril 1 and has budgeted sale oming quarter as follows: Apr e Units 1,700 2,000 1,850…
A: Beginning inventory = 1700*1/2*3*$4 = $10,200 Cost of good sold = 1700*3*$4 = $20,400 Ending…
Q: 2. Which of the following is not part of the cash flow statement? Operating activities Investing…
A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…
Q: Why I’m Always Over Budget (COB)
A: Contribution margin is sales price minus variable cost. When there is a…
Q: The (partial) cost sheet for the single product manufactured at Briarcliff Corporation follows: (2…
A: Fixed Overhead volume variance is the difference between the standard hours and budgeted hours at…
Q: EXERCISE 13-10 Make or Buy Decision LO13-3 Futura Company purchases the 40,000 starters that it…
A: A make-or-buy choice is made while deciding whether to manufacture a product internally or to…
Q: This information relates to Monty Co. 1. 2. 3. 4. 5. (a) (b) On April 5, purchased merchandise from…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Suppose the average growth rate for a small town with a population of 35,180 in the northeast United…
A: This is based on the principle of compounding. Compounding is the base for the principle of time…
Q: I love Chick-Fil-A (ILC) printed 650 t-shirts that were later discovered to contain a typo. The…
A: The relationship between sales volume, expenses, and profits is examined using the management…
Q: Using the indirect method, prepare the cash flows provided by operating activities section of the…
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…
Q: What costs are included when capitalizing an asset on the balance sheet
A: Capital expenditure are those expenditure that have enduring benefits and will be capitalised if the…
Q: ad from an outside source for y fee of 15 cents per loaf. Pre e proper format to determine
A: Make cost Variable cost = $1.70-0.42 = $1.28 Fixed cost = $0.42 Purchase price = $1.15 per loaf…
Q: www Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit…
A: The cash flow statement is an important financial statement for investors and analysts because it…
Q: Part 1 of 2 Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year…
A: Lets understand the basics. There are two costing system are followed which are, (1) Common stock…
Q: The relationship of $253,309 to $119,544, expressed as a ratio, is Oa. 0.9 Ob. 0.5 Oc. 0.7 Od. 2.1
A: Ratio analysis is a useful tool for a company's because its comparing performance over time or…
Q: On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method.…
A: The last in first out method states that the most recent or last purchases are sold first. The first…
Q: The manager of Arbor, Incorporated, is considering raising its current price of $50 per unit by 10%.…
A: sales per unit = $50 variable cost per unit = $35 Contribution margin per unit = sales per unit -…
Q: On December 31, Year 1, a company had 200 million shares of common stock and 3 million shares of 9%,…
A: The earning per share is a measure used by the investor to evaluate the companies when making…
Q: Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is…
A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…
Q: Missing Amounts from Balance Sheet and Income Statement Data One tam is omitted in each of the…
A: Equity is the total amount invested in the business. This is calculated by deducting total…
Q: Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors…
A: Buy cost is the cost to purchase the product from outside. Make cost is the cost of making/…
Q: Provide the answers to the following questions. 1. What amount of interest expense is reported for…
A: Face value of bonds= $3,270,000 No of years=20 years interest rate= 13% Yield rate= 12% Cash…
Q: Kinkaid Company was incorporated at the beginning of this year and had a number of transactions. The…
A: The balance sheet represents the financial position of the business with assets, liabilities and…
Q: Provide the answers to the following questions. 1. What amount of interest expense is reported for…
A: Face value of bonds= $3,270,000 No of years=20 years interest rate= 13% Yield rate= 12% Cash…
Q: Additional information: (a) All sales are on credit and are collected 20% in the month of sale and…
A: Financial Statement comprises of Income Statement, Balance Sheet, cash flow statement and Notes to…
Q: Riverbed Company has gathered the following information. Units in beginning work in process…
A: Process costing is used where there is two or more production process includes. Under process…
Q: Date 7 9 15 Nov. 10 Cash 16 17 18 Accounts and Explanation Inventory Expense Cash Purchased…
A: Journal Entries - Journal Entries are the records of the transactions entered into by the company…
Q: Exhibit 6-1 The totals from the first payroll of the year are shown below. Total Earnings $36,195.10…
A: Payroll tax: A payroll tax is a tax withheld from an employee's salary by an employer who remits it…
Q: Doctor Company prepared the tabulation below at December 31, 2020. Net Income Adjustments to…
A: A cash flow statement is a type of accounting statement that summarizes all of the cash inflows and…
Q: Carney Company manufactures cappuccino makers. For the first eight months of 2010, the company…
A: Incremental analysis is one of the decision making techniques that helps the entity to decide if a…
Q: Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance…
A: The gross margin is nothing but the difference between the total cost of goods sold and the total…
Q: Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000…
A: Ratios are used to analyze the current situation of the company and make any changes favourable to…
Q: Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income…
A: The cash flow statement is prepared to record the cash flow from various activities such as…
Q: Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following data…
A: The lower-of-cost-or-net realizable value is a method in accounting for inventory used by many…
Halifax Products sells a product for $75. Variable costs per unit are $50, and monthly fixed costs are $75,000. Answer the following questions:
Required:
- What is the break-even point in units?
- What unit sales would be required to earn a target profit of $200,000?
- Assuming Halifax achieve the level of sales required in part b, what is the margin of safety in sales dollars?
Step by step
Solved in 3 steps
- 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 245,000Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Jasmine Incorporated sells a product for $61 per unit. Variable costs per unit are $31, and monthly fixed costs are $252,000. Answer the following questions: Required: a. What is the breakeven point in units? b. What unit sales would be required to earn a target profit of $162,000 ? c. Assuming Jasmine achieves the level of sales required in part b, what is the margin of safety in sales dollars?
- Halifax Products sells a product for $118. Variable costs per unit are $67, and monthly fixed costs are $168,300. a. What is the break-even point in units? Break-Even Point units b. How many units would need to be sold to earn a target profit of $102,000? Total Required Sales units c. Assuming they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety[The following information applies to the questions displayed below.] Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $ 12.00 per case 5.50 per case 391,950 per year Assume that the company plans to sell 75,300 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher tha projected. What impact will these cost changes have on operating profit for the year? Will profit…Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 439.00 per unit Variable costs 199.00 per unit Fixed costs 687,000 per year Assume that the projected number of units sold for the year is 4,200. Consider requirements (b), (c), and (d) independently of each other. Required: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 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?
- Required: A. What is the breakeven point in unit sales and dollars for each type of Bats at the current sales mix? B. What is the breakeven point in unit sales and dollars for each type of Bat at the current sales mix if the tax rate is 40%? C. The Accountant is considering buying new production equipment. The new equipment will increase fixed cost by twice and will decrease the variable cost by 50%. Assuming the same sales mix, how many of each type of bat does Nadalneed to sell to break even?Can i please get help withthis question? Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn a profit of $150,000. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.I have the following additional questions: 1) Calculate the breakeven point in dollars under the current scenario 2) Calculate the number of units to be sold if the company desires a target profit of $225,000. 3) Calculate the sales dollars if the company desires a target profit of $225,000.
- Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0Groove auto is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.sales price 443.00 per unit.variable cost 203.00 per unit.fixed costs 715,000assume that the projected number of units sold for the year is 4 400.consider requirement b,c,d independent from each other. [a] What will the operating profit be? [b] What is the impact of operating profit if the sales price decreases by twenty percent increases by ten percent? [c] What is the impact on operating profit A veritable cost per unit decrease by ten percent increase by twenty? [d] Suppose that fixed costs for the year are 20% lower. Than projected and bearable costs per unit are 10% higher than projected. What impact will these costs changes have on operating profit for the year Kindly solve b c and dFlyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer's management desires a 12.5% profit margin on sales. Its current full cost for the product is $44 per unit.If the company cannot cut costs any lower than they already are, what would the profit margin on sales be to meet the market selling price?