Estimated sales22,000 booksBeginning inventory0 booksAverage selling price$82 per bookVariable production costs$45 per bookFixed production costs$396,000 per semesterThe fixed-cost allocation rate is based on expected sales and istherefore equal to $396,000 22,000 books = $18 per book. Academia Press produces textbooks for high school accounting courses. The company recently hired a new editor, Billie Green, to handle production and sales ofbooks for an introductory accounting course. Billie's compensation depends on the gross margin associated with sales of this book. Billie needs to decide how manycopies of the book to produce. The following information is available for the fall semester 2020:(Click the icon to view the information.)Billie has decided to produce either 22,000, 27,500, or 29,700 books.Read the requirements.Requirement 1. Calculate expected gross margin if Billie produces 22,000, 27,500, or 29,700 books. (Make sure you include the production-volume variance as part ofcost of goods sold.)Calculate the gross margin for each level of production. Begin with 22,000 books, then 27,500 books, and lastly 29,700 books. (Enter a "0" for any zero balanceaccounts. If an account does not have a variance, do not select a label.)22,000 booksRevenuesCost of goods soldProduction-volume varianceNet cost of goods soldGross margin

Gross margin refers to the profit before period costs. It is computed by subtracting the direct and…

Answered: Academia Press produces textbooks for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During 2020, Jeff has the following startup costs for his new lawn-care business: · Employee Training & Orientation Costs: $5,000 · Legal and Accounting fees: $8,000 · Market Research and Surveys: $4,000 Jeff’s business begins operations on January 1, 2021. Determine the amount that Jeff should deduct and when. Group of answer choices $5,000 in the 2020 tax year. $5,800 in the 2020 tax year. $5,800 in the 2021 tax year. $17,000 in the 2021 tax year.
Khairy is deciding if he should pursue a professional course for one year, from January to December 2022. The direct costs of the course is $3000 and the opportunity cost involved, given that Khairy is unable to work for a year, is $6000. Khairy plans to work from the year 2023 to 2025 upon completion of the course and subsequently withdraw from the labour force. The incremental earnings Khairy expects to earn after obtaining this professionalqualification is $2000 in the year 2023, $2500 in the year 2024 and $3000 in the year 2025. Assume the interest rate is 10%. i) Apply the method of net present value to decide whether Khairy should pursue this course. (by using the given formula) ii) Explain the effect of the following factors on the net present value of human capital investment. a) Increase in fees due to privatization of institutions of higher education b) Increase in retirement age
.
Please refer to screenshot for question
You have just finished your undergraduate degree and you have two career options: Option 1: Accepting a job offer with the starting salary of $75,000 per year (paid at the end of the year) and an annual raise of 2% pa (guaranteed). You will work in this company for 40 years. Option 2: Choosing a graduate program which will cost you $28,000 per year for the next two years (paid at the beginning of each year). Following the graduate school, you can get a job that offers the initial salary of $85,000 (paid at the end of the Year 3) with an annual raise of 3% pa (guaranteed). You will work in this company for 38 years. a. If you use the discount rate of 10% pa, which option is more lucrative for you? b.At what discount rate will you be indifferent between these two career options? (Hint: You need to use the incremental cash flows to answer this question) c. If option 2 (i.e., work after grad school) comes with a signing bonus (paid at the beginning of Year 3), at what signing bonus will…
Novak Corp. offers a set of building blocks to customers who send in 3 codes from Novak cereal, along with $1.00. Novak purchased 99,100 building block sets in 2020 for $2.50 each, and paid for them by cash. During 2020, Novak sold 991,000 boxes of cereal for $4 per box. Novak estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Novak expects 30% of the codes to be sent in, and in 2020, 237,840 codes were redeemed.
Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $1,500 per month. (2) Take a summer class which will cost 200 per month and work half time making $1,600 per month. (3) Take two classes at a total monthly cost of $3,200 and not work at all during the summer. Leah’s opportunity cost of taking two classes if she chooses option 3 over option 1 would be: $3,200 per month. $1,700 per month. $1,200 per month. $1,500 per month. $1,400 per month.
Divide your class into groups of three to four persons and spend 10 minutes on the following situation. Report and discuss your results with your classmates. A startup company will require capital investment of $350,000 in 2018 and another $340,000 in 2019. Revenue in 2018 is estimated to be $50,000 and $60,000 in 2019. After 2019, the revenue is expected to be $175,000 per year for a total of four years. After four years, the firmwill be sold for $1,000,000.What is the simple payback period for this business venture? Draw a cash-flow diagram.
THIS QUESTION REQUIRES AN ESSAY STYLE ANSWER Harry sells hats in his shop and at the end of the financial year he is is required to do a stocktake. He has 200 hats in the shop available to show and sell to customers. They cost $20 each. He sells them for $50 each. Due to Covid, there has been a surplus available and so the price has dropped from his supplier, so in future he can replace them for $15. Required: What are his options in valuing the stock? Explain to him what is the best option so as to reduce his income tax The answer must include an analysis of the pertinent sections of the relevant legislation, rulings and the relevant case law and give reasons and calculations for your answer
Three years ago, Dorothy Taylor started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Dorothy sells the baskets for $33 each, and her variable costs are $23 per basket. She incurs $11,600 in fixed costs each year. (a) How many baskets will Dorothy have to sell this year if she wants to earn $28,000 in operating income? (Round answer to O decimal places, eg. 5,275) baskets
Mr. John Villamin wanted to sell cupcakes to his friends. He spends Php 22.50 per cupcake with corresponding mark up of 140%. For the month of February 2022, he sold 100 pcs on the 1st 15 days of the month, and 125 pcs on the remaining days of the month. Other expenses are 10% of the total ingredients cost. How much is the income or loss of Mr. Villamin for the month of February 2022 (indicate if income or loss and show your computation)?
Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $3,400 per month. (2) Take a summer class which will cost $800 per month and work half time making $1,800 per month. (3) Take two classes at a cost of $1,200 and not work at all during the summer. Leah’s incremental profit (or loss) if she chooses option 2 over option 1 would be ($1,100) per month. ($2,200) per month. ($2,400) per month. $1,300 per month. ($2,100) per month.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS