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Chapter 4 Post-Class Homework
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CHAPTER 4 - Cost-Volume-Profit Analysis
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Question 13
Correct
Mark 10.00 out
of 10.00
Take me to the text
The Chokolate Shop has an operating profit of $13,000.
a) Calculate the degree of operating leverage for each of the independent cases (assuming operating profit is held
constant):
i. Contribution Margin is $46,000.
ii. CM ratio is 57% and revenue is $116,000.
iii. Selling price per unit is $33, variable costs per unit are $20 and it sold 4,400 units.
Do not enter dollar signs or commas in the input boxes.
Round contribution margin and operating income to the nearest whole number. Round the degree of operating leverage
to 2 decimal places.
Contribution Margin
Operating Profit
Degree of Operating Leverage
i.
$
46000
$
13000
3.54
ii.
$
66120
$
13000
5.09
iii.
$
57200
$
13000
4.4
b) Which scenario has the largest degree of operating leverage?
Scenario:
ii
Explanation
a) ii. Contribution Margin = Revenue x CM Ratio
iii. Contribution Margin = (Sales Price - Variable Cost) x Units Sold
Contribution Margin Operating Profit Degree of Operating Leverage
i.
$46,000
$13,000
3.54
ii.
$66,120
$13,000
5.09
iii.
$57,200
$13,000
4.40
b) Scenario ii. has the largest degree of operating leverage.
Correct
Marks for this submission: 10.00/10.00.
11/1/23, 8:48 PM
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Estimating Allowance for Doubtful Accounts
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Age Class
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1 %
1-30 days past due
31-60 days past due
12
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Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below.
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Days Past
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96,500
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75%
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20,754
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Wage and Tax Statement Data on Employer FICA Tax
Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal
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Changes in Current Operating Assets and Liabilities-Indirect Method
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
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Exercise 17-22
Whispering Company has the following investments as of December 31, 2017:
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- Chap 14. Q.3arrow_forward< + .. + Sheet1 FINA310 IP TEMPLATE FOR STUDENTS Student name: Date: ACTUAL FORECAST Current Year Next Year Total Revenue 71,879 Cost of Revenue (51,125) Gross Profit 20,754 Operating Expenses: Selling, General, and Administrative (14,248) Research and Development Special Income/Other Charges S (2,194) Total Operating Expenses (16,442) Operating Income S 4,312 Net Interest Income (666) edite Pre-Tax Income 3,646 Provision for Income Tax (19.5%) (711) Net Income 2,935arrow_forward10:04 Assignment Details ATG-110-20A01: Financial Accounting (Session II Summer 2021) 7474 unread replies.7575 replies. Please read and respond to TIF 12-2 on page 623. Review the rubric to ensure you receive full points for this discussion. Discussion Rubric- 25 points(1)_(3).docx *After you have posted your answers, please reply to three other students' posts. This discussion board was set up so that you will not be able to see others replies until you post your own. Search entries or author Filter replies by unreadUnread Collapse replies TIF 12-2 Issuing Stock 1. ETHICS Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 per share in order to appeal to a wide variety of potential investors. Lou and Shirley believe…arrow_forward
- Edit View History Bookmarks People Tab Window Help N Academic Tools :: Northern Virgi X 63% Mon 12:07 PM weCS Virginia Community College Syst X N CHAPTER 08 HW NOVA learn.vccs.edu/courses/240149/assignments/4704240?module_item_id=17254910 https://checkout.wileyplus.com/ X des View Policies rse Evaluations Current Attempt in Progress A Policies Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. r.com: 24/7 On- Tutoring Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note. ary Resources Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note. 16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…arrow_forwardF myCampus Portal Login - for Stu X B 09 Operational and Legal Consid x E (24,513 unread) - sharmarohit81 b My Questions | bartleby A fleming.desire2learn.com/d21/le/content/130754/viewContent/1518900/View?ou=130754 Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations 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 I Group Project.xlsx Show all 12:35 AM O Type here to search A O 4) ENG 2020-12-09arrow_forwardEdit View History Bookmarks Profiles Tab Window Help M 100% M Sun 11:24 AM as College WP Ch 05 Homework Assignment X wP NWP Assessment Player UI Ap X ducation.wiley.com/was/ui/v2/assessment-player/index.html?launchld=73f9082f-68e7-46db-a4b3-509e5b6e0e6d#/question/0 mework Assignment Question 1 of 2 - / 5 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 cost…arrow_forward
- ment Opp Class Specifications | Sorted WileyPLUS + https://edugen.wileyplus.com/edugen/student/mainfr.uni WileyPLUS: MyWileyPLUS I Help I Contact Us Kieso, Intermediate Accounting, 16e INTERMED. ACCOUNTING (ACC 3110 ce Assignment се Gradebook ORION Downloadable eTextbook ent PRINTER VERSION CALCULATOR FULL SCREEN BACK Exercise 15-9 Your answer is partially correct. Try again. Bramble Corporation has 10,800 shares of $100 par value, 7 %, preferred stock and 46,500 shares of $10 par value common stock outstanding at December 31, 2017. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2014, what are the dividends in arrears at December 31, 2017? Amount of dividends in arrears 226,800 How should these dividends be reported? not reported The cumulative dividend is as a liability. (b)If the preferred stock is convertible into 7 shares of $10 nar value common stock…arrow_forwardgage Learning * CengageNOWv2 | Online teachin x Cengage Learning ignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How 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 Check My Work All work saved. Email Instructor Save and Exit Suarrow_forwardPears X P W Chapter: Recording Business TraNSACTIONS Sep. 1 hed:course:7710589/products/79c3fa4c-a84f-42ba-b87a-e36a400bca00/pages/urn:pe 6 7 Proble X P-F:2-30A. Journalizing transactions, posting journal entries to T- accounts, and preparing a trial balance (Learning Objectives 3, 4) 15 G New Ann Simpson started her practice as a design consultant on September 1, 2024. During the first month of operations, the business completed the following transactions: 3. Prepare the trial balance of Vince York, M.D., as of July 31, 2024. 30 Received $48,000 cash and issued common stock to Simpson. Purchased office supplies, $1,200, and furniture, $1,300, on account. Performed services for a law firm and received $1,900 cash. X Paid $18,000 cash to acquire land to be used in operations. Performed services for a hotel and received its promise to pay the $1,200 within one week. Paid for the furniture purchased on September 4 on account. Paid assistant's semimonthly salary, $1,500. Received cash on…arrow_forward
- History Bookmarks Profiles Tab Window Help M Question 2 - Ch 21: Homewor × D2L Classlist - Spring 2024 Intro × New Tab .edu/webwork2/MATH_107_online_Spring_2024/HW_20_Simple_and_Compound_Interest/14 MAA MATHEMATICAL ASSOCIATION OF AMERICA / HW 20 Simple and Compound Interest / 14 Previous Problem Problem List Next Problem HW 20 Simple and Compound Interest: Problem 14 (6 points) What are the effective annual rates for an account paying an annual interest rate of 6% which is compounded: (a) annually? (b) quarterly? % % (c) daily (assuming there are 365 days in the year)? % (d) continuously? % Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 05/04/2024 at 02:41pm EDT WeBWorK 1996-2022 | theme: math4-green | ww_version: 2.17 | pg_version 2.17 | The WeBWarrow_forwardFINA310 IP TEMPLATE FOR STUDENTS Student name: Date: ACTUAL FORECAST Current Year Next Year Total Revenue 71,879 |Cost of Revenue (51,125) Gross Profit 20,754 Operating Expenses: Selling, General, and Administrative (14,248) Research and Development Special Income/Other Charges (2,194) Total Operating Expenses (16,442) Operating Income 4,312 Net Interest Income (666) edite Pre-Tax Income 3,646 Provision for Income Tax (19.5%) (711) Net Income 2,935 Additionally, Tag-It's CEO has predicted a 12% increase in total revenue next year. Utilizing the percentage of sales method, prepare a forecast for next year in the correct section on the Excel spreadsheet. 1. The total revenue numbers over the past 4 years for Tag-lt Corporation were as follows (values in millions): o 73,785 O 69,495 o 75,356 o 71,879 2. Determine whether you think Tag-It can hit the target of a 12% increase in sales next year.arrow_forwardClass Collaborate-AC-163-44 P x CengageNOWv2| Online teachin X + 2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignments... A 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 Check My Work 8 144 0 P Previous Email Instructor Save and Exr Submit Assignment for Grading pri se…arrow_forward
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