(c) What is the contribution margin ratio? Contribution margin ratio What is the margin of safety in sales dollars and as a ratio? Margin of safety Margin of safety ratio %
Q: Which financial statement reports an organization's financial position at a single point in time?…
A: The company prepares financial reports to show the results of business activities. The final report…
Q: Requirement: Prepare a statement of cash flows for ABC Co. for 2022, using the indirect method. (20…
A:
Q: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or…
A: An intangible asset is one that lacks a physical form. Intangible assets include goodwill, brand…
Q: why it is necessary to monitor cost per product or unit operating cost in order to determine the…
A: Unit cost or unit operating cost is the cost per unit produced. It helps in deciding and formulating…
Q: Calculate the variable overhead spending and efficiency variances. (Round answers to O decimal…
A: Variable Overhead Spending Variance = (Actual Hours x Standard Rate) - Actual Overhead Costs…
Q: The unadjusted trial balance at the end of the year includes the following: Accounts Receivable $…
A: Lets understand the basics. For following matching principle of accounting, entity generally create…
Q: Is 2.5 m 0.6 DLH $6.50 per metre $16.75 per labour hour used to allocate both variable overheads and…
A: Sales volume variance refers to the concept of computing the difference between the real and the…
Q: Prepare a trial balance as of December 31, 2021. Cash Account…
A:
Q: Pratice Problem 3 A company's individual job sheets show these costs for Jobs 298, 299, and 300.…
A: recording of journal entry in above situation are as follows
Q: a) Prepare a production budget for May & June for OldX and NewX b) Prepare a materials (Component…
A: 1. The desired ending inventory of Old X for May = 10% of 20000 =2000 2. The desired ending…
Q: On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In…
A: The question is based on the concept of Financial Accounting.
Q: The October transactions were as follows: Oct. 5 Received $800 cash from customers on account. 10…
A: JOURNAL ENTRY Journal entry is the Techniques of Recording initial Transaction in a Proper…
Q: profit and losses in the ratio of 2: 7 respectively. On 1 September 2022, Brown was admitted to the…
A: When two or more people come together so as to do business, it is known as partnership firm. The…
Q: Question 10 Shane's Cookware Company has three cost pools and overhead estimates are as follows:…
A: Sorry Hand Solution is not possible, but I have solved this question with proper format for you.…
Q: Intercontinental, Incorporated, uses a perpetual inventory system. Consider the following…
A: calculation of cost of goods sold and ending inventory under FIFO method are as follows
Q: I cannot believe it is almost year end! Only a few days before it's 2022. As you recall, I was lucky…
A: The fact that the shares are now trading at a price that is eight times higher than the price you…
Q: features of good government accounting
A: Introduction Government accounting refers to the accounting software used by government entities to…
Q: Presented below is information related to Anderson Company for 2022. Sales revenue…
A: According to the given question, we are required to prepare the income statement for the year ending…
Q: Which of the following statements are true? 1. Wages paid to production supervisors would be…
A: The correct option with proper explanation are as follows
Q: 7. (EQUATION OF VALUES) Gene owes the following debts: A. Php40,000 due in 2 years and B. Php545,000…
A: According to the question, we are required to compute the total payment made by Gene at the end of…
Q: 5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer…
A: A partnership is a form of business organization. It is the one wherein two or more persons together…
Q: Sports Manufacturing Company produces baseball bats. They have recently moved from handcrafted bats…
A: The question is based on the concept of Cost Accounting.
Q: How much do you pay for Social Security if you are taxed at 6.2% of your income and you make $4350…
A: Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2…
Q: The accounting records of Omar Corporation contained the following information for last year:…
A: Direct materials are those materials that are used in order to produce the final products. These…
Q: Berkeley Bank reports the following information about resources in two functions. Cost Driver Rate $…
A: Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…
Q: Jorgensen Company has sales of $380,000,000, and the break-even point in sales dollars is…
A:
Q: PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alt- [LO 9-2, LO 9-3]…
A: Answer :Double declining depreciation rate = 2*(100%/Estimated useful life in year) Double declining…
Q: QUESTION 10 Strama, Incorporated, manufactures and sells two products: Product A6 and Product 15.…
A: calculation of order size activity cost pool under activity based costing is closest to are as…
Q: The following information was taken from Visayas Company's accounting records for the year ended…
A: Cost of goods sold includes all outlays and costs directly associated with producing goods (COGS).…
Q: [The following information applies to the questions displayed below.) At the beginning of the year,…
A: Introduction: In accounting, capitalizing implies recognizing an expense as an asset. The cost of…
Q: Stockton Company Adjusted Trial Balance December 31 Cash 5,490 Accounts Receivable 2,145 Prepaid…
A: Retained earnings are the unallocated profits available for distribution to the shareholders. It is…
Q: If a company has stockholders' equity of $215,000 at the end of the year, which of the following…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Prepare a bank reconciliation statement for the month
A: Reconciliation is made by the company so that the balances can be figured out why there has been a…
Q: Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 – Renwick…
A: The question is asked to prepare the journal entries with respect to the financial information. Net…
Q: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin…
A: Under variable costing or marginal costing, net operating income is calculated by reducing fixed…
Q: Can a business do without managerial accounting ?
A: Business is defined as any unit that is engaged in executing activities. They may be involved in…
Q: Bill's estate paid $8,175 in fees to appraisers and $2,380 in medical bills from his last illnesses…
A: A taxable estate seems to be the part of an individual's assets including property that would be…
Q: Wildhorse Company has the following information available for September 2022. Unit selling price of…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: Suppose Rainforest.com sells 4,000 books on account for $18 each (cost of these books is $43,200) on…
A: Perpetual Inventory System – Under the Perpetual inventory system on every sales transaction cost of…
Q: During the month of August, Karlsson Industries had the following transactions: Aug. 2 Aug. 6 Aug.…
A: Introduction: In double entry accounting system, every transaction effects two accounts…
Q: On January 1, 20X3, Parade Corporation reported total assets of $473,000, liabilities of $271,000,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Calculate the amount major of interest total of a year for a bill of saving a term open, with an…
A: There are the following information given below: Amount major and interest =?
Q: Compare Income Statements and Balance Sheets of Competitors a. Following are selected income…
A: Business companies compile income statements so as to determine how much gross profit or net profit…
Q: Name: Section: roblem 5-1-OverPriced Jeans, Inc. Closing Entries for February Beg. Balance Feb 01…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Prepare and analyze the Cash Flow Statement of the company. Prepare and analyze the Common Size…
A: A trend analysis is made by the company so that the insights and flows can be determined by the…
Q: Marigold Company applies overhead on the basis of machine hours. Given the following data, what is…
A: Overhead cost is applied on the basis of a cost driver which is machine hours in the given question.…
Q: Analyzing Cash Dividends on Preferred and Common Stock Potter Company has outstanding 13,000 shares…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Which of the following statements are true about profitability ratios? Check all that apply. If a…
A: The correct option regarding profitability ratio with proper explanation are as follows
Q: Presented below are a number of balance sheet items for Tamarisk, Inc. for the current year, 2020.…
A: Balance Sheet - Balance Sheet is the statement that contain assets, Liabilities and Equity. It is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (a)What is the contribution margin ratio? Contribution margin ratio % (b)What is the break-even point in dollars? Break-even point $ (c)What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % (d)If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021: Sales quantity Unit selling price Unit variable costs Fixed costs (a) 2,200 barrels $75 per barrel $45 per barrel $18,480 What is the contribution margin ratio? Contribution margin ratio %Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,200 units Sales price $75 per unit Variable costs $45 per unit Fixed costs $18,480 What is the contribution margin ratio? Contribution margin ratio % What is the break-even point in dollars? Break-even point $ What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio % If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
- Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.APPLY THE CONCEPTS: Margin of Safety Margin of safety can allow you to see how much padding there is for your company between profit and loss. If this number is great, it may indicate that your company is performing very well. If this number is small, it may be worth looking into possible remediation. Consider the following pricing and cost information: Price and Cost Information Amount Selling Price per Unit $450 Variable Cost per Unit $400 Total Fixed Cost $70,000 For the upcoming period, the company projects that it will sell 2,000 units. Considering that the company has a unit break-even point of 1,400 units, what is the margin of safety in terms of both units and sales revenue? Round your answers to two decimal places, if necessary. Margin of Safety in Units Margin of Safety in Sales Revenue = $Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?
- Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, ь) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000. e)For Sunland Company, actual sales are $1,770,000, and break-even sales are $1,451,400. (A) Compute the margin of safety in dollars. Margin of safety $Type your answer here (B) Compute the margin of safety ratio. Margin of safety ratio Type your answer here %Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
- Choose the correct letter of answer Jan Slaugther Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the profit function in this case? a. C = 50x + 70,000b. Answer not givenc. P = 120x – 50x – 70,000d. R = 120xQuestion 3: CRS Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.Question 3: Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.
