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Chapter 4 Quiz
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CHAPTER 4 - Cost-Volume-Profit Analysis
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An increase in fixed costs will result in what change to the contribution margin:
Select one:
a. Decrease in the contribution margin.
b. Deletion of the contribution margin.
c. Increase of the contribution margin.
d. No change to the contribution margin.
Your answer is incorrect.
Explanation: Fixed costs are subtracted from the contribution margin so any change to fixed costs will not cause a change
in the contribution margin.
The correct answer is: No change to the contribution margin.
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Presented here are the components in Bradley Company's income statement. Determine the missing amounts.
Net
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Income
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$35,000
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What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded quarterly? (Round your answers to the nearest cent.)
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Convert 30% to a decimal.
percent
100%
decimal =
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Recall the following formula to calculate the trade discount, where the trade discount rate is a decimal.
trade discount = list price x trade discount rate
Submit
A boutique buys some merchandise with a list price of $2,400. If the wholesaler extends a 30% trade discount rate, find the trade discount.
100%
Enter a number.
This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to
come back to the skipped part.
21
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The list price was given to be $2,400 and a discount of 30% will be applied. Before substituting values into…
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Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of
the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts.)
connect
Owner invested $66,500 in exchange for common stock of the corporation.
Hired an employee to be paid $500 per week, starting tomorrow.
Paid two years' rent in advance, $7,100.
Paid the worker's weekly wage.
Recorded service revenue…
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Exercise 17-42 (Algo) Taguchi Quality Loss Function (QLF) Analysis [LO 17-4]
Flextronchip, an OEM manufacturer, has a fifth-generation chip for cell phones, with chip specification of 0.2 ± 0.0002 mm for the
distance between two adjacent pins. The loss due to a defective chip has been estimated as $20.
Required:
1. Compute the value of k, the cost coefficient in the Taguchi quality loss function (QLF), L(x) = (x-7)².
2. Assume that the quality control manager takes a sample of 100 chips from the production process. The results are as follows:
Measurement
Frequency
3
0.1996
0.1997
5
0.1998
15
0.1999
14
0.2000
35
0.2001
14
0.2002
6
0.2003
5
0.2004
3
a. & b. Use the appropriate Taguchi quality loss function, L(x), to calculate the estimated quality loss for each of the observed
measurements.…
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Cost-Volume-Profit Analysis
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40
The Effect Of Prepaid Taxes On Assets
And Liabili...
O
13. Goodwill can be recorded
a. When customers keep returning because they are satisfied with the company's products.
b. When the company acquires a good location for its business.
c. When the company has exceptional management.
d.
Only when there is an exchange transaction involving the purchase of an entire
business.
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first account field.)
4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and
purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and
round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the
View transaction list
Journal entry worksheet
1
2
3
4
5
6
Record sales on account.
Note: Enter debits before credits.
Date
January 24
General Journal
Debit
Credit
Desk 1
7
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23 Mar
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Costs to date
Estimated costs to complete
Progress billings during the year
Cash collected during the year
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$ 980,000
3,020,000
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Calculate the amount will be reported for accounts receivable on the statement of financial
position at December 31, 2022.
3. Accounts Receivable on the Statement of Financial Position at December 31, 2022 for
Newton Corp.:
Accounts Receivable is calculated as the cumulative billings to date minus the cumulative
cash collected:
Accounts Receivable at December 31, 2022 = Cumulative Billings- Cumulative Cash
Collected Accounts Receivable at December 31, 2022 = ($1,000,000+ $1,000,000) -
($648,000+ $1,280,000) = $2,000,000 - $1,928,000 = $72,000
Therefore, the amount reported…
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Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $969,000 and sales for the year total $10,990,000.
a. The allowance account before adjustment has a credit balance of $13,100. Bad debt expense is estimated at 1/4 of 1% of sales.
b. The allowance account before adjustment has a credit balance of $13,100. An aging of the accounts in the customer ledger indicates estimated
doubtful accounts of $41,900.
C. The allowance account before adjustment has a debit balance of $4,600. Bad debt expense is estimated at 3/4 of 1% of sales.
d. The allowance account before adjustment has a debit balance of $4,600. An aging of the accounts in the customer ledger indicates estimated
doubtful accounts of $38,200.
Determine the amount of the adjusting…
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Margin of Safety
Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $7,500.
a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal?
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Salma wants to save money to open a tutoring center. She buys an annuity with a monthly payment of $27 that pays 3.7% interest, compounded
monthly. Payments will be made at the end of each month. Find the total value of the annuity in 10 years.
Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
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You are considering a sales job that pays you on a commission basis or a salaried position that pays you $50,000 per
year. Historical data suggests the following probability distribution for your commission income. Which job has the
higher expected income?
Probability of
Commission
Occurrence
$15,000
0.10
$35.000
0.20
$48,000
0.40
$67,000
$80,000
0.16
0.14
Select one:
A. The salary of $50,000 is greater than the expected commission of $48,400,
OB
The salary of$50,000 is greater than the expected commission of $49 620.
Oc The salary of $50,000 is less than the expected conmmssion of $52720.
OD The salary of $50,000 is tess than the expected commission of S5C050
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Operating income
Expenses:
Selling expenses
Administrative expenses
The following multiple-step, income statement was prepared for Carlsbad Company contains errors:
CARLSBAD COMPANY
Income Statement
For the Year Ended February 28, 2018
Delivery expense
Total expenses
Other expense:
Interest revenue
Gross profit
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Prepare a corrected income statement for Carlsbad Company for the year ended February 28, 2018.
Carlsbad Company
Income Statement
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$ 1,800,000
1,350,000
112,500
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9,495,000
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270,000
90,000
$180,000
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ESTIMATED PROFIT AND LOSS ACCOUNT (INCOME STATEMENT) FOR KARACHI
TRADERS LTD
$
Revenue (5000 units @ $3.00)
15000
Cost of goods sold (@ $1.00 per unit)
Gross profit
5000
10000
Overhead expenses
4000
Operating profit (profit before tax and interest)
6000
Finance costs (interest)
2000
Profit before tax
4000
Corporation tax @ 20%
Profit for the year
800
3200
Dividends paid
1200
Retained profit
2000
Profit and loss account for Karachi Traders Ltd for the year ending 31 December 2014
20 marks, 40 minutes
1. By amending this profit and loss account (income statement), calculate the new
level of retained profits if the following changes actually occurred:
• each unit was sold…
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maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how
much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are
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Determine the following measures for 2018.
Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of
days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume
there are 365 days in the year.
1. Working capital
Г
2,790,000
2.
Current ratio
4.1
3. Quick ratio
2.5
4.
Accounts receivable turnover
16
5. Days' sales in receivables
22.8
days
6.
Inventory turnover
7. Days sales in inventory
8. Debt ratio
days
%
9. Ratio of liabilities to stockholders' equity
10.
Ratio of fixed assets to long-term liabilities
11. Times interest earned
times
times
12.
Times preferred dividends earned
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Suppose Easton Company reported net receivables of $2,582 million and $2,260 million at January 31,
2019, and 2018, respectively, after subtraction allowances of $72 million and $67 million respectively.
Easton earned total revenue of $43,333 million (all on account) and recorded uncollectible account
expense of $13 million for the year ended January 31, 2019. Use the following T accounts to sort out
your answer.
1. Use this information to measure the following amounts for the year ended January 31, 2019.
a. Write-off of uncollectible receivables.
b. Collection from customers
Allowance for Uncollectible Accounts
D Focus
G
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- How do I find the missing figuresarrow_forwardb Preview File Edit View Go Tools Window ♥ mgt120h-a17.pdf Page 4 of 10 Cost-Volume-Profit Analysis Help 40 The Effect Of Prepaid Taxes On Assets And Liabili... O 13. Goodwill can be recorded a. When customers keep returning because they are satisfied with the company's products. b. When the company acquires a good location for its business. c. When the company has exceptional management. d. Only when there is an exchange transaction involving the purchase of an entire business. Debenture Valuation CC 7 Www D mi popisiva V Search ------- (Cª Ơ www Sat Apr 15 3:05 PM Page 4 of 11 wwwarrow_forwardChap 14. Q.3arrow_forward
- 26 EhaLbrowser=0&launch Url=https:253A%252F%252Fnewcorrected education on 1726 Saved Help Save & E first account field.) 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted-average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the View transaction list Journal entry worksheet 1 2 3 4 5 6 Record sales on account. Note: Enter debits before credits. Date January 24 General Journal Debit Credit Desk 1 7 e US 23 Mar 6:44arrow_forward7:27 f t < Session[1].docx - Word ✓ Qo 138 - 21 Paragraph O References Mailings Review View Help BLUEBEAM One day you're going to miss my boring texts ## TO Accessibility: Investigate Search Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year hoher webb ng Normal ||| No Spacing Styles Acrobat 2021 $ 980,000 3,020,000 1,000,000 648,000 Go to website O Heading 1 √ Calculate the amount will be reported for accounts receivable on the statement of financial position at December 31, 2022. 3. Accounts Receivable on the Statement of Financial Position at December 31, 2022 for Newton Corp.: Accounts Receivable is calculated as the cumulative billings to date minus the cumulative cash collected: Accounts Receivable at December 31, 2022 = Cumulative Billings- Cumulative Cash Collected Accounts Receivable at December 31, 2022 = ($1,000,000+ $1,000,000) - ($648,000+ $1,280,000) = $2,000,000 - $1,928,000 = $72,000 Therefore, the amount reported…arrow_forwardAt what amount would the purchase on February 1 be recorded for the net price if the net method were used?arrow_forward
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