Answer? ? General Accounting Company ABC's break-even point in sales is $600,000 andits variable expenses are 65% of sales. If the company lost$27,000 last year, calculate their actual sales.a) $520,000b) $490,000c) $573,000d) $465,000

Step 1: Contribution margin ratio Basis: Sales so the sales ratio is 100%Contribution margin ratio =…

Answered: Company ABC's break-even point in sales…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

See similar textbooks

Similar questions

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
answer
Sabv Corporation's break-even-point in sales is $920,000, and its variable expenses are 70% of sales. If the company lost $42,000 last year, sales must have amounted to: Multiple Choice $878,000 $836.000 $780,000 $602.000
Help this question solution
general accounting
Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,
Company X's break-even-point in sales is $675,000, and its variable expense ratio is 75%. Last month, the company made a loss of $24,000, How much was the sales ($)? a. 603,000 O b. 651,000 Oc. None of the given answers O d. 471,000 O e. 579,000
Creswell Corporation's fixed monthly expenses are $31,000 and it's contribution margin ratio is 65%...
General accounting
What were total sales for the year??
Below is information from Omicron Company's most recent income statement. Sales $500,000 300,000 Variable Expenses Contribution Margin $200,000 Annual fixed expenses are $70,000 and Omicron sold 20,000 units. If, in the current period, fixed expenses are expected to decrease by $10,000 and unit sales decrease by 10%, the change in net operating income will be: a. b. C. d. $10,000 decrease $20,000 decrease $30,000 decrease $10,000 increase

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Company ABC's break-even point in sales is $600,000 and its variable expenses are 65% of sales. If the company lost $27,000 last year, calculate their actual sales. a) $520,000 b) $490,000 c) $573,000 d) $465,000