Anderson Company's break-even point in units is 2,150. The sales price per unit is $10 and the variable cost per unit is $5. If the company sells 5,200 units, what will its net income be? a. $25,500 b. $15,250 c. $11,700 d. $19,750 e. $26,000

Anderson Company's break-even point in units is 2,150. The sales price per unit is $10 and the variable cost per unit is $5. If the company sells 5,200 units, what will its net income be? a. $25,500 b. $15,250 c. $11,700 d. $19,750 e. $26,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Expert of general accounting answer

A: Step 1: Definition of Return on Equity (ROE)Return on equity (ROE) measures a company's ability to…

Q: correct answer please

A: Step 1: Definition of Balance SheetA balance sheet is a financial statement that shows three…

Q: Find the total direct labor cost variance on these general accounting

A: Step 1: Introduction to standard costingStandard costing is a management accounting technique used…

Q: Please given correct answer

A: Step 1: Calculate the Cost of Goods Sold (COGS) before AdjustmentBegin with the cost of goods…

Q: choose best answer general accounting

A: Step 1: Definition of Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) represents the direct…

Q: Calculate the variable rate

A: Step 1: Definition of High-Low MethodThe high-low method is a technique used to estimate the…

Q: L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in…

A: No. The $7.63 sales tax collected by L.L. Bean is not included in the company's sales revenue. Sales…

Q: If Ram Nation can give up one unit of future consumption and as a result increase its current…

A: Define the VariablesFuture Consumption: The amount of consumption Ram Nation has in the future (1…

Q: Weight average method would be

A: Concept of Work in Process (WIP) InventoryWork in Process (WIP) Inventory refers to the partially…

Q: Sales price variance for the year

A: Step 1: Definition of Sales Price VarianceSales Price Variance measures the effect of the difference…

Q: Compute the net income

A: Concept of Net SalesNet sales represent the total revenue a company earns from selling goods or…

Q: Accounting question

A: Step 1: DefinitionThe predetermined overhead rate is an estimated rate used to allocate…

Q: Question 25

A: Concept of Retained EarningsRetained earnings represent the cumulative net income of a company that…

Q: hi expert please help me general accounting

A: To calculate Days' Sales in Receivables, we use the formula: Days' Sales in Receivables=Net Sales…

Q: There is sufficient capacity to fill the order

A: The answer is (d) $3.45. Given:Variable costs for 60,000 units= $108,000Fixed costs for 60,000…

Q: What is the return on assets on these general accounting question?

A: Step 1: Define Return on Assets (ROA)The Return on Assets (ROA) measures a company's profitability…

Q: Answer this Accounting Problem

A: Concept of Plan AssetsPlan Assets refer to the total funds accumulated in a pension plan, which are…

Q: Hy expert please given answer

A: Step 1: Definition of Total CostsTotal costs consist of fixed costs (which remain constant…

Q: The financial statements of the Bolton Manufacturing Company reported net sales of $530,000 and…

A: Concept of Average Accounts ReceivableAverage accounts receivable represents the midpoint value of a…

Q: Financial Accounting MCQ

A: Concept of Inventory Turnover RatioThe Inventory Turnover Ratio measures how many times a company…

Q: What is the firm's asset turnover of this financial accounting question?

A: Step 1:The formula to calculate return on equity using the Du Pont analysis is as follows: Return on…

Q: Retirement Portfolio Mutual Fund Type Net Asset Value Shares Total Value…

A: The provided solution analyzes a retirement portfolio by categorizing mutual funds based on their…

Q: Solve this general accounting question not use ai

A: Approach to solving the question: Solution/FormulaSelling Price $ 6.50 Variable costs $…

Q: Don't Use Ai

A: Concept of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) represents the total…

Q: Please answer the following requirements on these financial accounting question

A: Step 1: a) Total Asset Turnover Total asset turnover is the ratio of sales to assets as Profit…

Q: This Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data…

A: Step 1: Definition of Controllable Overhead Spending VarianceThe controllable overhead spending…

Q: Financial Accounting

A: Step 1: Calculation of preferred dividendPreferred dividend = Number of preferred shares × Par value…

Q: General Account

A: Step 1: Definition of Gross ProfitGross profit is the amount a company earns from its core business…

Q: What are its after tax earnings? General accounting question

A: To calculate after-tax earnings (Net Income), we follow these steps: Identify Given Data EBIT…

Q: What is the value of the total assets

A: Given:Total debt = $6,666Debt-to-equity ratio = 0.59Formula for Total Assets: Total Assets =Total…

Q: What is the unit product cost under absorption costing?

A: To calculate the unit product cost under absorption costing, we need to include direct materials,…

Q: Please provide answer this general accounting question

A: The question provided is related to calculating the equivalent units for conversion costs for…

Q: Answer this MCQ

A: Explanation of Manufacturing Overhead Rate: This is a predetermined rate used to allocate indirect…

Q: Accurate answer

A: Explanation of Gross Profit: Gross profit is the difference between total sales revenue and the cost…

Q: If investors expect a 14% return on a $50 stock that pays a dividend of $2.50, what is the implied…

A: 1. Calculate the Dividend Yield:Dividend Yield = (Annual Dividend / Stock Price) * 100Dividend Yield…

Q: What is Anna's asset turnover for

A: Step 1:First, calculate the average total assets: Average total assets = (Total assets 2023 + Total…

Q: 5 PTS

A: Explanation of Manufacturing Margin: Manufacturing margin represents the difference between total…

Q: Financial information for crow enterprises is presented below

A: Explanation of Sales Revenue: Sales revenue represents the total amount of money generated from…

Q: What is the direct materials price variance?

A: Step 1: Definition of Direct Materials Price VarianceThe Direct Materials Price Variance measures…

Q: Please provide answer this financial accounting question

A: To determine the stock price based on the Price-to-Earnings (P/E) ratio, we use the formula: Stock…

Q: ??

A: Detailed explanation:Formula: Quick Ratio = (Cash + Accounts Receivable + Marketable Securities) /…

Q: Use the following data: Nov. 30, 2011 Nov. 30, 2012 Nov. 30, 2013 Sales $ 35,00,000 $ 40,00,000 $…

A: Step 1: Definition of Gross ProfitGross profit is the difference between total sales revenue and the…

Q: generaal account answer wanted

A: 1. Calculate the current net income:Revenue: $3,000,000Variable Costs: 50% of $3,000,000 =…

Q: Anjali Brewery has estimated budgeted costs of $72,600, $78,900, and $85,200 for the manufacture of…

A: Explanation of Flexible Budget:A flexible budget is a financial plan that adjusts based on different…

Q: Need. Answer. General Account Subject

A: The question requires the determination of the dividend yield and the capital gains yield.Dividend…

Q: Please give answer the financial accounting question

A: Step 1: Define Freight-InFreight-In refers to the shipping and transportation costs incurred by a…

Q: ANSWER

A: 1. Identify the relevant information:Cost of the asset: This is the initial purchase price of the…

Q: Ans plz general accounting

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to apply…

Q: What is the current price earnings ratio on these financial accounting question ?

A: The price/earnings (P/E) ratio is calculated using the formula: P/E=Earnings per Share (EPS)Price…

Q: Above the lower bound ?

A: The question pertains to determining the lower bond of an option in the event that there are no…

Question

What will its net income be?

Anderson Company's break-even point in units
is 2,150. The sales price per unit is $10 and the
variable cost per unit is $5. If the company sells
5,200 units, what will its net income be?
a. $25,500
b. $15,250
c. $11,700
d. $19,750
e. $26,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
What will it's net income be?
Alvarez Company's break-even point in units is.... Solve these general accounting question
If the selling price per unit is $50, the variable expense per unit is $20, and total fixed expenses are $260,000, what are the breakeven sales in dollars? A. $433,333 B. $650,000 OC. $185,714 ⒸD. $156,000
Alvarez Company's break-even point in units is 1,650. The sales price per unit is $12 and variable cost per unit is $10. If the company sells 3,800 units, what will net income be? Multiple Choice $4,300 $7,600 $3,000. $65,400 $36,300
Mazoon Company's variable costs are 75% of the selling price and its fixed costs are $80,000. To realize profits of ?$20,000 from sales of 60,000 units, using the CVP equation, what would be the selling price per unit $1.66 a O None of the given answers .b O $1.77 .c O $6.67 d O $5.33 .e O
Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a. $100,700 increase O b. $186,200 increase O c. $186,200 decrease O d. $286,900 increase
The selling price per unit?
Rider Company sells a single product. The product has a selling price of $40 per unit and variable expenses of $15 per unit. The company's fixed expenses total $30,000 per year. The company's break-even point in terms of total dollar sales is: Select one: a. $48,000. O b. $60,000. $80,000. O d. $100,000.
Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increase
please post in general account
Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000