
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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can u solve question E and H

Transcribed Image Text:Sinbad manufactures decorative iron railings. In preparing for next year's operations, management has developed the
following estimates: (LO# 3)
Units
Total
Per unit
Sales
20,000
1,000,000
50
Variable Expenses
600,000
30
CM
400,000
20
Total Fixed Ex
ses
110,000
Operating Profit
290,000
Required: EXCEL
Compute the following items:
a. Unit contribution margin.
b. Contribution margin ratio.
c. Break-even in units and dollar sales.
d. Margin of safety in dollar amount and percentage.
e. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating
income? Verify your answer
f. If the per unit variable production costs increase by 15%, and if fixed selling and administrative expenses increase by
12%, what will be the new break-even point in dollar sales?
g. if the company would like to achieve a profit of $90,000 next year, what would be the break-even point in units and dollar
amount to earn that target?
h. If monthly sales increase by $80,000 and there is no change in fixed expenses, by how much would you expect monthly
net operating income to increase?
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- What does the concept "substance over form" stand for? Can you provide me with some examples?arrow_forwardZina Manufacturing Company started and completed Job 501 in December with the following Job Cost Sheet and transferred it to the warehouse. Direct Materials Date Dec 17 Dec 30 Total Direct Labor Amount Date Amount $2,000 Dec 20 $4,000 8,000 Dec 30 3,800 Total Job Cost Sheet - Job No. 501 Total Cost The journal entry to record the transaction is A) WIP Inventory FG Inventory B) Cost of Goods Sold WIP Inventory C) FG Inventory WIP Inventory D) FG Inventory WIP Inventory Debit Credit 35,800 17,800 17,800 Manufacturing Overhead Date Amount Dec 24 $10,000 Dec 30 8,000 Total 35,800 35,800 17,800 17,800 35,800arrow_forwardis thsi correct?arrow_forward
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