Each month, Act Corporation has $320,000 total manufacturing costs (25% fixed) and $140,000 distribution and marketing costs (40% fixed). Act's monthly sales are $600,000. What is the mark up percentage on full cost to arrive at the target (existing) selling price?
Q: The Forging Department of Kahlo Metals Inc. had 1,500 tons in beginning work in process inventory…
A: Step 1: DefinitionsConcept of Equivalent Units of Production (EUP):Equivalent units of production…
Q: What was the ball cost of goods manufactured for the month?
A: Explanation of Raw Materials Used:Raw materials used refer to the direct materials consumed in the…
Q: Can you demonstrate the accurate steps for solving this financial accounting problem with valid…
A: Step 1: DefinitionsConcept of Product Costs:Product costs are all costs that are involved in the…
Q: I am trying to find the accurate solution to this financial accounting problem with the correct…
A: Step 1: Define Net IncomeNet income is the profit a company earns during a period after subtracting…
Q: Can you help me solve this general accounting question using the correct accounting procedures?
A: Explanation of LIFO (Last-In, First-Out):LIFO is an inventory costing method that assumes the most…
Q: I need
A: Step 1: Definition of Net IncomeNet Income is the amount a company earns after subtracting all its…
Q: Financial Accounting
A: Step 1: Define Stockholders' Equity Stockholders' equity represents the residual interest in the…
Q: Please explain the solution to this general accounting problem with accurate principles.
A: Step 1: Definition of Absorption CostingAbsorption costing is a costing method that includes all…
Q: I am looking for the correct answer to this general accounting problem using valid accounting…
A: To calculate Pinnacle's Degree of Operating Leverage (DOL):1. Calculate Current Earnings Before…
Q: Vista Market Store's daily register records an opening float of $250. During the day, the store made…
A: To calculate the expected cash amount in the register at the end of the day, we only include…
Q: I am trying to find the accurate solution to this general accounting problem with appropriate…
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a planning and…
Q: Correct Answer
A: To calculate Asset Turnover for 2024, we use the formula: Asset Turnover = Sales ÷ Average Total…
Q: Quick answer of this accounting question
A: Step 1: Definition of Debt-to-Equity RatioDebt-to-Equity Ratio (D/E) is a financial leverage ratio…
Q: give me answer with calculation
A: To calculate the debt-to-equity ratio, use this formula: Debt-to-Equity Ratio = Total Liabilities ÷…
Q: Harris Company assigns overhead cost to jobs on the basis of 120% of direct labor cost. The job cost…
A: Definition of Overhead Application Rate:An overhead application rate is used to allocate indirect…
Q: I am trying to find the accurate solution to this general accounting problem with appropriate…
A: Step 1: Define Required Sales to Achieve Target ProfitTo calculate how many units (inspections) are…
Q: I am trying to find the accurate solution to this general accounting problem with the correct…
A: Let's solve both parts step by step:Part (a): Contribution Margin Ratio for Bert CompanyGiven:Sales…
Q: Can you explain the process for solving this financial accounting question accurately?
A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the residual interest in a…
Q: A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15…
A: Gross Profit Formula:Gross Profit = Sales Revenue − Cost of Goods Sold (COGS) Step 1: Calculate…
Q: Solve this question with appropriate methodology.
A: We have given, Material Cost = ₹40 per unitLabor Cost = ₹25 per unit We know that, Prime Cost =…
Q: I need guidance with this general accounting problem using the right accounting principles.
A: Problem:TechPro Inc. stock has a beta of 1.20 and its required return is 14%. Greenfield Corp.'s…
Q: Yao Ming Traders has the following transaction data: beginning inventory $9,200, purchases $70,000,…
A: Step 1: Definitions Concept of Cost of Goods Sold (COGS):Cost of Goods Sold represents the direct…
Q: Can you provide the valid approach to solving this financial accounting question with suitable…
A: Step 1: Define Cost of Machinery Acquired via Stock IssuanceWhen a company acquires an asset by…
Q: Nelson’s cash conversion cycle
A: CCC=DOI+DSO−Accounts Payable Period Given Information:Credit Sales = $150,000Net Profit Margin =…
Q: What is the net income? Accounting question
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures a company's…
Q: I am searching for the correct answer to this general accounting problem with proper accounting…
A: Step 1: Define Gross Profit and Net ProfitGross Profit is the difference between net sales and the…
Q: I am trying to find the accurate solution to this financial accounting problem with the correct…
A: Step 1: Definition of Earnings Per Share (EPS)Earnings Per Share (EPS) is a key financial metric…
Q: Solve this question and accounting question
A: To solve this, we'll calculate the Operating Cash Flow (OCF), Investment in Operating Capital (IOC),…
Q: Dear tutor solve with appropriate method. .
A: Given:Current Ratio = 2.8Acid-Test Ratio = 1.2Working Capital = $420,000Current assets include only:…
Q: chose best answer
A: Step 1: Definition of Days' Sales in ReceivablesDays' Sales in Receivables, also known as the…
Q: In October, one of the processing departments at Trinity Manufacturing had a beginning work in…
A: Provided Data:Beginning Work in Process (WIP) Inventory = $42,000Ending Work in Process (WIP)…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…
Q: Can you demonstrate the accurate steps for solving this financial accounting problem with valid…
A: Step 1: Definition of Basis in LandThe total basis in land is the initial cost of acquiring the…
Q: Can you solve this general accounting problem using accurate calculation methods?
A: Step 1: Definitions Concept of Profitability Index (PI):The profitability index is a financial…
Q: Can you help me with this general accounting question solution?
A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio is a valuation metric…
Q: Please explain the solution to this general accounting problem with accurate explanations.
A: Step 1: DefinitionConcept of Gain or Loss on Disposal of Asset:When a company disposes of a fixed…
Q: solve this question by using appropriate methodology and true answer.
A: We determine the amount of interest the bank collected for Brightstar, Inc., by preparing a bank…
Q: General accounting
A: Step 1: Definition of Operating Cash Flow, Investment in Operating Capital, and Free Cash…
Q: What was the absorption costing net operating income last year ?
A: Step 1: Definition of Absorption vs. Variable Costing IncomeThe difference between absorption…
Q: Please help me solve this financial accounting problem with the correct financial process.
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures a company's…
Q: Determine the materials price variance and materials quantity variance.
A: Concept of Standard Price:The standard price is the predetermined or expected cost of a unit of raw…
Q: Can you solve this general accounting problem using accurate calculation methods?
A: Step 1: Definition of Equivalent Units Equivalent units are used in cost accounting to measure the…
Q: I am looking for help with this general accounting question using proper accounting standards.
A: Step 1: Definition of High-Low MethodThe High-Low Method is used to estimate fixed and variable…
Q: Solve this question with appropriate methodology.
A: Given:Hourly wage = ₹100Time taken = 6 hoursStandard time = 8 hoursHalsey plan = 50% of time saved…
Q: Can you explain the correct approach to solve this general accounting question?
A: To calculate the total amount of Property, Plant, and Equipment (PP&E) that will appear on the…
Q: none
A: Solution: Step 1: Write the Du Pont formula for Return on Equity (ROE).ROE = Net Profit Margin ×…
Q: Please explain the solution to this general accounting problem with accurate principles.
A: Step 1: Definition of Capital Gains Yield (CGY)Capital Gains Yield (CGY) measures the return earned…
Q: I need assistance with this general accounting question using appropriate principles.
A: To calculate Granite Peak Co.'s 2022 net income using accrual accounting, we recognize revenues when…
Q: Can you please help me solve this Accounting problem
A: Step 1: Identify the high and low activity levelsHigh activity: 10,300 machine hours, power cost =…
Q: Hello need help by real expert and true answer.
A: To calculate the under-absorption or over-absorption of overheads, you can use the following…
What is the mark up percentage in full cost to arrive at the target selling price
Step by step
Solved in 2 steps
- Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
- Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.
