FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount to $320,000, how much sales did Kailyn make for the year?
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- Last year, Bridgerton Co. had sales of $1,625,000 on the sale of 25,000 units, variable costs of $450,000 and fixed costs of $250,000. Assume a tax rate of 30%. What level of sales in units would be required to achieve an after-tax profit of $110,000 (rounded to the nearest whole number)? 4 10,664 8,663 10,263 9,264arrow_forwardSarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000. Assume that the company's sales for May are expected to be $97,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating incomearrow_forwardCallie Corporation’s products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), its degree of financial leverage (DFL), and its degree of total leverage (DTL)? The firm has no preferred stock.arrow_forward
- The Rachel Company has sales of $450,000, and the break-even point in sales dollars is $292,500. Determine the company's margin of safety as a percent of current sales.fill in the blank 1 %arrow_forwardYour company’s single product has a selling price of $15 per unit. Last year the company variable costs were $9 per unit, fixed expenses were $90,000 and a net operating income was $30,000. A study by the sales manager disclosed that a 15% increase in the selling price would reduce unit sales by 10%. How many u it’s were sold last year?arrow_forwardYour Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable expenses are $4.50 per unit. What is the selling price?arrow_forward
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