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Chapter 4 Post-Class Homework
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CHAPTER 4 - Cost-Volume-Profit Analysis
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Chapter 4 Post-Class Homework
Question
6
Partially correct
Mark 4.00 out of
6.00
Take me to the text
The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $66 per customer. The salon’s
fixed costs are $50,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $16.50 per
customer. Target operating profit for the year is $98,000.
Do not enter dollar signs or commas in the input boxes.
a) Calculate the revenues needed to obtain the target operating profit.
Round the Contribution Margin ratio to 2 decimal places. Round all other answers to the nearest whole number.
CM ratio:
75
%
Required CM: $
148000
Revenue: $
197333
b) How many haircuts have to be provided to earn an operating profit of $71,000? To break-even?
Round up to the nearest whole unit.
BEP:
1010
Haircuts to yield $71,000:
c) Calculate the operating profit if 3,800 haircuts are provided.
Round to the nearest whole number.
Operating Profit: $
138100
Explanation
a) CM ratio: = ($66 - $16.50) ÷ $66 = 75.00%
Required CM: = $98,000 + $50,000 = $148,000
Revenue: = $148,000 ÷ 75.00% = $197,333
b) BEP: = $50,000 ÷ ($66 - $16.50) = 1,011
Haircuts to yield $71,000: = ($50,000 + $71,000) ÷ ($66 - $16.50) = 2,445
c) Operating Profit: = 3,800 x ($66 - $16.50) - $50,000 = $138,100
Partially correct
Marks for this submission: 4.00/6.00.
10/30/23, 8:14 PM
Chapter 4 Post-Class Homework
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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
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Operating profit (profit before tax and interest)
6000
Finance costs (interest)
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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
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Entries for notes payable
Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.
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1. the issuance of the note.
2. the payment of the note at maturity.
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.
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b. Assume that more than one product is being sold in each of the four following case situations:
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470,000
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87 740
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5,380
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79 %
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
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O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
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Quick ratio
Adieu Company reported the following current assets and current liabilities for two recent years:
Dec. 31, 20Y4 Dec. 31, 20Y3
Cash
$830
$1,090
Temporary investments
1,200
1,500
Accounts receivable
820
910
Inventory
2,100
2,500
Accounts payable
1,900
2,500
a. Compute the quick ratio on December 31 for each year. Round to one decimal place.
20Υ4
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b. Is the quick ratio improving or declining?
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Information pertaining to Noskey Corporation's sales revenue follows:
November 2021
(Actual)
$ 180,000
December 2021
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$ 160,000
500,000
January 2022
(Budgeted)
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000'09
$ 540,000
Credit sales
$ 360,000
000'09
Total sales
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You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year.
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Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.)
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1. In this section we examine three theories of investor preference: The dividend irrelevance
theory. The "bird in the hand" theory, the tax preference theory, which theory is the best?
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2. In the working capital management, we know about cash conversion cycle model. For
problem if average inventories are $3 million and sales are $11 million. If receivables are
S 657.535 and sales are S 11 million. Then, if its cost of goods sold are $9 million per year
and if its accounts payable average $ 657.535. What is the length of the cash conversion
sicle?
3. The ELGRAJO Corporation has capital structure as follow…
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09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
• You expect your sales to be
3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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Estimating Allowance for Doubtful Accounts
Evers Industries has a past history of uncollectible accounts, as follows.
Age Class
Percent Uncollectible
Not past due
1 %
1-30 days past due
31-60 days past due
12
61-90 days past due
30
Over 90 days past due
75
Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below.
Evers Industries
Estimate of Allowance for Doubtful Accounts
Not Past Days Past Days Past Days Past
Days Past
Due 1-30 Due 31-60 Due 61-90 Due Over 90
Balance
Due
Total receivables
1,124,500 607,400 233,000
121,600
96,500
66,000
1%
3%
12%
30%
75%
Percentage uncollectible
Allowance for doubtful accounts
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Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,00O.
Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to
pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any
returns or any issues with payment.
Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered
on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers
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all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises
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kercises
Remaining Time Unimted
Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a
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
taxed at a rate of 27%, then how much will you have when you retire?
Round all answers to 2 decimal places.
Before taxes retirement amount $
Number
After taxes retirement amount $
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- 16% D Fri 12:09 w History Bookmarks Window Help A education.wiley.com W https://msroederbhs.weebly.com/uploads/2/2/4/0/2240201 NWP Assessment Player UI Application Quiz 2 -/3 E Question 1 of 10 View Policies Current Attempt in Progress Presented here are the components in Bradley Company's income statement. Determine the missing amounts. Net Operating Expenses Cost of Gross Sales Income Goods Sold Profit Revenue 2$ $17,000 $35,000 $75,000 $86,000 $59,000 $48.000 Attempts: 0 of 1 used Submit Answer Save for Later tv 80 888 DI DD F3 F4 F5 F6 F7 F8 F9 F10 F11 @ # $ % A & + 2 3 4 7 8 9 { [ W R Y Parrow_forwardos.schoolsplp.com/enrollments/156569804/items/YUI32/work?prev3LNSDS O Western Brown Loc. Desmos | Graphing. A ALEKS- Gracie Glov. M My Classes | McGra. A Classes Next Activity > els B: Lesson 1 - Salary Target due: 1/14/21 58.33% $344.75 $700 2) Choose the best answer. Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time and a half for every hour over 40 that he works in a week. What will his gross pay be for a week in which he works 46 hours? NTT $546.35 $446 $512.90 $256.45 $769.35 O O O O Oarrow_forwardvbbroncos.schoolsplp.com/enrollments/156569804/items/CL1W7/work?prev-YU132 A ALEKS - Gracie Glov. M My Classes | McGra.. A Classes O Western Brown Loc. Jal Desmos | Graphing... Glover Next Activity > Models B: Lesson 2 - Other Forms of Compensation Target due: 1/14/21 16.66% A O 3) Choose the correct answer. -Maribel is offered a job as a paralegal at an annual base salary of $47,000. In addition, the company will pay the following benefits: a retirement contribution that is 10.5% of Maribel’Ms base salary, disability insurance totaling $338, medical insurance totaling $6,500, and a year-end bonus of 17% of her base salary. What is the annual value of this job to Maribel? O $47,000 O $66,435 $58,773 $66,763 $58,435 口 O 4) Choose the correct answer. Marrow_forward
- Chap 14. Q.3arrow_forwardA Final Exam - MATH 1330 - Math b Details | bartleby E New tab A https://www.webassign.net/web/Student/Assignment-Responses/submit?dep=254878928tags=autosave#question4023958_1 Sign in 12. DETAILS HARMATHAP12 6.2.009. MYΝΟΤΕS 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.) future value 24 interest earned %24arrow_forwardw- 202106070805337561 Qv Search in Document Home Insert Draw Design Layout References Mailings Review View + Share a Calibri (Body) 11 A- A- Aa AaBbCcDc AaBbCcDdE AaBb AaBbCcDdEE AaBbCcDdEe AaBbCcDdEe Paste I U v abe X, x² A A Styles Pane Sensitivity Normal No Spacing Heading 1 Heading 2 Title Subtitle Orthodox School 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…arrow_forward
- blem Set: ModX * CengageNOWv2 | On x * Cengage Learning B Milestone Two Guidel x G module 5 problem set X ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=. Lo еВook Show Me How Entries for notes payable Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 2 b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Previous Check My Work 56°F Mostly cloudy ヘ 回。arrow_forwardPart 1arrow_forwardown): Week 31 x CU122-0 2201 (Brown): Week 4 x Week 6: Culmination Knowledge x npt.php?attempt=D29214128cmid=866335 fr. E Enduring Word Bibl. b My Questions | bart. Financial Aid Student Accounts Resources - Campus Store g and Cost Control 2202-DeWitt s/ CE167-0 2202 (DeWitt)/ Week 6: Menu Prices Week 6: Culmination Knowledge Check Chef Amy does beginning inventory on Thursday night and finds that she has $4194 in food products in the restaurant. Throughout the week she purchases: • $2088 produce, • $1678 protein, • $870 dry goods, and • $3914 dairy. The following Thursday she does ending inventory and finds that she has $3464 in food. She looks at her sales and finds that she made $30541 over the same 7 day period. What is her total food cost? Select one: a. $12,744 K b. $16,208 c. $8,550 d. $9,280 Chef Fabio does beginning inventory on Thursday night and finds that he has $1456 in food products in the restaurant,. Throughout the week he ered purchases: 1.00 • $457 produce, • $632…arrow_forward
- +V My Questions | bartleby b References Chapter 3 Quiz Camden County College camdenccinstructure.com/courses/3788/assignments/35967?module_item id=88693| Next> K Prev Send to Gradebook Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) --/1 Question 15 View Policies Current Attempt in Progress Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total materials costs are $91000. How much is the conversion cost per unit? O $17.52. O $4.70. $12.82. O $30.33 eTextbook and Media Submit Answer Save for Later Attempts: 0 of 1 used 11:10 A 10/4/20 hp ins prt sc end home f12 11 DI delete f9 f8 f7 f6 fs 10 + & % num backspace 6 7 lock 5 { P T U Y II 96arrow_forwardhUrl=https%253A%252F%252F sive Problems - 10% semester grade i Saved Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: (Loss amounts should be indicated by a minus sign.) Case #1 Case #2 Case #3 Case #4 Sales 442,000 198,000 306,000 Variable expenses 128,700 82,620 Fixed expenses 57,000 470,000 Net operating income (loss) $ 42,120 87 740 $. 5,380 Contribution margin ratio (percent) 36 % 79 % 0. Required A %24 %24 %24 %24arrow_forwardMy Questions | bartleby b + Camden County College References Chapter 3 Quiz Ha X //camdenccinstructure.com/courses/3788/assignments/35967?module item id=88693 Next> Send to Gradebook < Prev Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) Question 19 -/1 View Policies Current Attempt in Progress A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were: O 95220 equivalent units. O 135300 equivalent units. O 70200 equivalent units. O 85200 equivalent units. eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later 11:21 AM 10/4/2019 hp ins prt sc 12 end 11 home f10 delete fg f8 f5 f4 II & num backspace 6 5 lock } { P T U Y home + 96arrow_forward
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