Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the margin of safety in sales dollars.
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Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the margin of safety in sales dollars.
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- Curl is entering the professional hairdryer market. Research shows that their customers wish to pay S307 or less for each dryer. The estimated cost per unit for each dryer is $160 and the target operating income per unit is $16. The management of Curl is considering the use of the cost-plus approach rather than the target-cost approach. Cost accountants at the manufacturer have collected the following information: Direct Materials /unit 50 Direct labor/unit 30 Variable overhead 30 Fixed costs annually 206,250 Estimated production for year one 3,750 1. Do you think that it's a good idea for Curl to use the cost-plus approach to price the hairdryer? 2. What strategies could Curl's management use to make a profit if the company insisted on using the cost-plus approach to price the hairdryer?Give me perfect answer with explanation.hStaley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $480 100 Variable costs 312 65 Unit contribution margin $168 35 Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000. Staley Co's margin of safety ratio (MOS%) if 600 units are sold would be (round intermediate calculation up to nearest whole number of units):
- Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $325,000 + $17.10X where X = Number of Heart Stents. Last year, Alisha produced 80,000 stents. Actual maintenance costs for the year were as expected. Required: 1. What is the total maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar.$? 2. What is the total fixed maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar.$? 3. What is the total variable maintenance cost incurred by Alisha last year? Round your answer to the nearest dollar.$? 4. What is the maintenance cost per unit produced? Round your answer two decimal places.$per unit? 5. What is the fixed maintenance cost per unit? Round your answer two decimal places.$per unit? 6. What is the variable maintenance cost per unit? Round your answer…1. SportsHaven’s garden department produces bags of mulch. Fixed cost is $17,300. Each bag sells for $3.21 with a unit cost of $1.48. How many bags of mulch must be sold to breakeven?5. Moose purchased a machine for $420,000 and leased it to Acme on January 1, 2021. Lease description: Quarterly rental payments $25,184 at beginning of each period Lease term 5 years (20 quarters) No residual value; no BPO Economic life of machine 5 years Implicit interest rate 8% Fair value of asset $420,000 What is the balance in the lease payable account after the April 1, 2021, lease payment?
- A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $630 and has per-unit variable costs of $315 associated with its production. The company has fixed expenses of $40,000 per month. In May, the company sold 230 of the Bomber model bikes. A. Calculate the contribution margin per unit for the Bomber. Contribution margin $____ per unit B. Calculate the contribution margin ratio of the Bomber. Contribution margin ratio _____% C. Prepare a contribution margin income statement for the month of May. Use a minus sign for a net loss if present. Income Statement $ $ $Bridgeport Racers makes bicycles. It has always purchased its bicycle tires from the Cullumber Tires at $26 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials $9 Direct labor $5 Variable manufacturing overhead $8 The company’s fixed expenses would increase by $73,000 per year if managers decided to make the tire.(a1) Calculate total relevant cost to make or buy if the company needs 11,300 tires a year. Make Buy Total relevant cost $enter a dollar amount $enter a dollar amount (a2) Ignoring qualitative factors, if the company needs 11,300 tires a year, should it continue to purchase them from Balyo or begin to produce them internally? The company select an option should not continueshould continue to purchase the tires.Need help with D & E
- Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.48 per mile driven. Joyce has determined that if she drives 3,400 miles in a month, her total operating cost is $1,004. If she drives 5,300 miles in a month, her total operating cost is $1,308. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost $460+ $0.16 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 5,500 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 22 percent. Using the degree of operating leverage. calculate the effect this will have on her profit for that month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Joyce's degree of operating leverage if she drives 5,500 miles. Note: Round your intermediate calculations to 2 decimal places and final answer…Hello, I need help solving this accounting problem.Campbell Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6,900 6,400 4,100 9,600 26,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Campbell for $2.80 each. Required a. Calculate the total relevant cost. Should Campbell continue to make the containers? b. Campbell could lease the space it currently uses in the manufacturing process. If leasing would produce $12,800 per month, calculate the total avoidable costs. Should Campbell continue to make the containers? a. Total relevant cost Should Campbell continue to make the containers? b. Total avoidable cost Should Campbell continue to make the containers?