Case 4 ( 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. Calculate the contribution margin amount and the variable cost if net income is BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to Case 5 40% of sales. What is the pretax income if sales are $650,000? Answer:
Case 4 ( 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. Calculate the contribution margin amount and the variable cost if net income is BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to Case 5 40% of sales. What is the pretax income if sales are $650,000? Answer:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
PLease answer last two subparts only
Case 4
Case 5
no handwritten answers thanku
Transcribed Image Text:Question 2
The Layal Corporation has compiled the following financial data for a new retail facility: annual fixed
costs are estimated at $100,000; selling price per unit of product estimated at $15, variable cost per
unit estimated at $5. The company is also interested to achieve a profit of 120,000 in the first year of
operations and 200,000 in the second year of operations.
Formulas to be used
Break-even point units - Fixed costs / selling price per unit-variable cost per unit
Break-even point $- Break-even point Units x selling price per unit
Break-even point units (profit) - Fixed costs + Profit/ selling price per unit- variable cost per unit
Break-even point Profit $-Break-even point units - Fixed costs / selling price-variable cost
Case 1
). Calculate the breakeven point in units and $ and the contribution margin.
Answer
Case 2 (
Calculate the breakeven point in units and $ and contribution margin taking into
account the profit that the corporation is planning to have.
Answer
Case 3
Calculate a) the breakeven point in units and S b) contribution margin c) the net
income if the corporation anticipates its fixed costs to increase by 180,000 and the selling price to
increase by 40%.
Answer:
Case 4 (
Calculate the contribution margin amount and the variable cost if net income is
120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales.
I
BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting
Case 5
Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to
40% of sales. What is the pretax income if sales are $650,000?
Answer:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
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,
Accounting
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