Shalom Company manufactures socks that sell for P60 each. For the coming year, the management estimates fixed costs to be P200,000 and variable costs to be P45 per unit. 1 What is Shalom Company's contribution margin ratio? 2 If the actual sales during the period was P750,000, did the company earn profit or incur loss? Use the underlined words in capital letters as your choice. 3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units should Shalom Company sell?
Q: Complete this question by entering your answers in the tabs below. Required A Required B Assume that…
A: ROI, simply return on investment, seems to be a frequently used metric for calculating the amount of…
Q: Periodic Inventory Accounting and Perpetual Inventory Accounting Check All That Apply are two…
A: Answer:- Period inventory accounting:- In this method inventory and cost of goods sold are computed…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The schedule of cash collection is prepared to estimate the cash collection during the current…
Q: Northwest Fur Company started the year with $100,000 of Inventory on hand. During the year, $415,000…
A: Cost of goods are expenses directly relate to the production or procurement of products.Cost of…
Q: Garda World Security Corporation has the following shares, taken from the equity section of its…
A: Dividend meaning:- Dividend is that part of profit which is distributed to the shareholders of the…
Q: Question 6 of 9 Current Attempt in Progress Crane Inc. incurred a net operating loss of $455,000 in…
A: Deferred tax asset = $455,000×30% = $136,500
Q: Take-a-Break Travel Company offers spring break travel packages to college students. Two of its…
A: Profit margin refers to the term which is defined as the difference among the aggregate cost for…
Q: Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse…
A: The formula to compute the gain or loss on the sale of an asset is: Sales price - (Adjusted basis) =…
Q: is a single taxpayer. his
A: Taxable income refers to the sum value of money earned by a taxpayer that is subject to a compulsory…
Q: Lucky Company's direct labor information for the month of February is as follows: Actual direct…
A: Direct labor rate variance is the difference between the labor cost estimated and the cost actually…
Q: Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Cardinal Company is considering a project that would require a $2,890,000 investment in equipment…
A: To calculate the simple rate of return, we need to first determine the total cash inflows and…
Q: Annette's Accessories had the following stock issued and outstanding at January 1, 2019. 150,000…
A: Dividend is the amount which is paid to the shareholders of the entity in the form of return. It is…
Q: Topic Please research an annual comprehensive financial report of any local municipality of your…
A: A construction project carried out by a government agency or department with the intention of…
Q: Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of…
A: Using variable costing, only variable manufacturing costs are included in the product cost. Using…
Q: Logan Logistics Ltd. has a fleet of delivery vehicles that are traded in when they reach 200,000 km.…
A: If an asset is exchanged then it is recorded at an amount equal to cash paid and the difference…
Q: PT Barnum Company uses the periodic inventory system and has the following data from its December…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: On September 1, a client paid the company $42,000 cash for six months of rent in advance and took…
A: Concept:- Unearned rent revenue, also known as deferred rent revenue, is a liability account that…
Q: r. Compute the after tax proceeds from the sale given the following:
A: To compute the after-tax proceeds from the sale, we need to determine the gain on the sale and the…
Q: AIM Inc. showed the following equity account balances on the December 31, 2019, balance sheet:…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: A company applies overhead at a rate of 200% of direct labor cost. Actual overhead cost for the…
A: Overheads are the indirect costs or indirect expenses related to production or manufacturing of…
Q: Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is…
A: 2. Cost of goods sold = $60000+$60000+$63000+$63000+$63000+$64500+$66000+$69000+$70500 = $579000 3…
Q: Assume that the operating results for last year were as in the question data. 4-a. Compute the…
A: Introduction:- The following formula used to calculate as follows:- Degree of Operating Leverage =…
Q: Exercise 13-14A (Algo) Segment elimination decision LO 13-4 Benson Company operates three segments.…
A: Segmented Income Statement: A segmented income statement provides a more thorough analysis of…
Q: Score:4/20 E9.16 (LO 4) Nelson Company, organized in 2020, has the following transactions related to…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Lindon Company provided the following information for the current year: Sales-P7,000,000 Sales…
A: Income from continuing operation includes the income generated from the continued operation, it also…
Q: Structuring the Sell-or-Process-Further Decision Jack's Lumber Yard receives 8,000 large trees each…
A: Contribution is the difference between the revenue and the variable expense of the business. The…
Q: Daily Prophet produces newspapers. They use a job-order cost system to accumulate their…
A: Cost of goods sold (COGS) : Cost of goods sold budget shows the expenses incurred for producing a…
Q: Dumbledore Publishing manufacturers wizarding textbooks. They utilize a process costing system to…
A: Process costing is used in an organization where a similar kind of product is produced and goods are…
Q: The following information is provided by the Atlas Company: Actual direct material cost Standard…
A: The variance is the difference between the actual cost and standard cost of production. The…
Q: Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are…
A: Contribution margin per unit = Selling price - Variable cost Contribution margin ratio =…
Q: Below are approximate amounts related to retained earnings reported by five companies in previous…
A: INTRODUCTION: Retained earnings are the net income or profit after taxes that is not given to…
Q: Common shares (no-par value; authorized 60,000 shares; outstanding 21,000 shares) Contributed…
A: The smaller stock dividend are declared on the basis of market value of shares on declaration date.…
Q: of mulch, and 9,024 cubic yards of wood pulp. The joint production process costs a total of $32,000…
A: Allocation of Joint costs of using the net realizable value method allocates the joint cost in…
Q: The Toy Emporium Inc. has compiled the following information for the year ended December 31, 2015.…
A: As per international financial reporting standards inventory to be valued at item at item by item…
Q: Inglis City had a beginning cash and cash equivalents balance in its internal service fund of…
A: A case flow statement is a graphical representation of the steps and decisions involved in a…
Q: On April 2, 2024, Wildhorse Company entered into a contract to supply medication to Laxall Drug…
A: The transaction price is the amount of consideration that Wildhorse expects to receive from Laxall…
Q: The following information relates to the debt securities investments of Cheyenne Company. 1. 2. 3.…
A: Journal Entry is the primary step to record the transaction in the books of accounts. Under Accrual…
Q: 4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit –…
A: The partnership comes into existence when two or more persons agree to do the share profits and…
Q: 1. ABC Company had the following data: Cost of materials used $87,000 Direct labor costs 25,000…
A: Cost of goods manufactured is total cost incurred to manufacture a product.
Q: upert’s Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm…
A: Introduction Activity-based costing is a costing method that allocates the overhead costs of…
Q: Assessment Tool iFrame A cash budget, by quarters, is given below for a retail company (000…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Which is not generally accepted in presenting the income statement?
A: Prior period errors are accounting errors that occur in a company's financial statements in one…
Q: Mabry Organics manufacturers organic fruit snacks. They use a departmental method of allocating…
A: Overhead is the total indirect expenses incurred in the factory in connection with production of…
Q: day: gnn Ltd.
A: Under the net asset method , purchase consideration is compared with fair value of the assets and…
Q: apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $…
A: Variable factory overhead efficency variance is difference between actual hours and standards hours…
Q: You have been contracted by Piyefu Limited as a consultant in accounting services and you have been…
A: a) In respect of the transaction in (1) above, the accounting treatment for the sale and leaseback…
Q: The records of Earthly Goods provided the following information for the year ended December 31,…
A: Cost to retail ratio = Cost of goods available for sale/goods available for sale at retail price…
Q: Current Attempt in Progress The inventory of Swifty Company was destroyed by fire on March 1. From…
A: The inventory loss by fire, if nothing is left can be calculated as an evaluation of ending…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weel…
A: fixed cost in total remains same and decreases per unit with increase in production and increases…
Step by step
Solved in 4 steps
- Faldo 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?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- 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:West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.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
- Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Give what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?
- Head-First Company now sells both bicycle helmets and motorcycle helmets. Next year, Head- First expects to produce total revenue of $585,000 and incur total variable cost of $372,000. Total fixed cost is expected to be $60,000. Required: 1. Calculate the break-even point in sales dollars for Head-First. Round the contribution margin ratio to four decimal places and sales to the nearest dollar. 2. Check your answer by preparing a contribution margin income statement.Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600Last month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses were P120,000, and fixed costs were P65,000. Required: a. What is the company’s contribution margin (CM) ratio? b. Estimate the change in the company’s net operating income if it were to increase its total sales by P8,000.