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: Shakespeare Motors has 12 employees and each employee is paid on average $165 per day and works 6…
A: Step 1: Definitions Concept of Accrued Wages and Salaries:Accrued wages and salaries are amounts…
Q: Please provide the correct answer to this general accounting problem using valid calculations.
A: To calculate cash flow, we typically use this formula based on indirect method:Cash Flow = Net…
Q: Solace Co. manufactures premium office chairs. During the most productive month of the year, 2,800…
A: Explanation of High-Low Method:The high-low method is a simple and widely used cost estimation…
Q: I don't need ai answer general accounting question
A: To find Wilson Manufacturing's total product cost for March, we need to include: Direct…
Q: General accounting
A: To find the number of units that must be sold, use the formula:Required Units = (Fixed Costs +…
Q: Solution
A: Definition of Labor Rate Variance (LRV):Labor rate variance is the difference between what a company…
Q: Subject ? Financial accounting
A: Step 1: Define Debtor's Turnover RatioThe Debtor's Turnover Ratio (also known as Accounts Receivable…
Q: Give me answer a b c for general accounting question
A: a. Gross ProfitGross Profit = Sales - Cost of Goods Sold (COGS)= $850,000 - $510,000= $340,000b.…
Q: Clarity National Bank's financial records include a beginning cash balance of $142,500. During the…
A: To determine the adjusted bank balance, we use the bank reconciliation approach by adjusting the…
Q: I need help with general accounting question
A: Step 1: Definition of Standard Cost CardA Standard Cost Card shows the estimated cost to produce one…
Q: Accounting
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…
Q: CFG Company products 2,000 units of a necessary component with the following costs
A: Concept of Make-or-Buy Decision:A make-or-buy decision is a strategic choice a company makes between…
Q: Financial Accounting
A: Step 1: Define Corrected Net ProfitCorrected net profit refers to the adjusted profit figure after…
Q: Please explain the accurate process for solving this financial accounting question with proper…
A: Step 1: Definition of Profit Margin RatioThe Profit Margin Ratio is a financial metric that measures…
Q: Financial Accounting
A: Step 1: Definition of Accrual AccountingAccrual accounting is a method that records revenues when…
Q: What is the total variable cost for the month? Solve general accounting question
A: Step 1: Define Variable CostsVariable costs are costs that vary directly with the level of…
Q: Solve this MCQ
A: Explanation of Right-of-Use Asset: A right-of-use asset represents a lessee's right to use an…
Q: Please show me the correct way to solve this financial accounting problem with accurate methods.
A: Step 1: Define Stockholders' EquityStockholders' equity is the residual interest in a company's…
Q: I am looking for the correct answer to this general accounting problem using valid accounting…
A: Step 1: Definition of Cash BalanceCash Balance refers to the amount of money available in a…
Q: General accounting question
A: Step 1: Definition of Degree of Operating Leverage (DOL) The Degree of Operating Leverage (DOL)…
Q: If Yankee Manufacturing continues to buy the part instead of making it, how much will it save?
A: To determine how much Yankee Manufacturing will save or lose by continuing to buy the part instead…
Q: What is the mark up percentage in full cost to arrive at the target selling price
A: To calculate the mark-up percentage on full cost, we follow these steps:Step 1: Calculate total…
Q: Can you help me find the accurate solution to this financial accounting problem using valid…
A: Step 1: Define Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…
Q: Accurate Answer
A: What We're Solving:What was Hudini's actual variable overhead cost last quarter? Given:Units…
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: Given the solution and accounting question
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures how effectively a…
Q: The Rolling Department of Kairo Metals Inc. had 2,500 tons in beginning work in process inventory…
A: To calculate the total equivalent units for direct materials for July, we need to apply process…
Q: On January 3, 2020, Lennox Corporation acquired equipment for $120,000. The estimated life of the…
A: Concept of Cost of Equipment:This is the initial purchase price of a long-term asset, including all…
Q: A retail store had 150 units of a product in beginning inventory at a cost of $12 per unit. During…
A: Let's calculate the ending inventory using the FIFO (First-In, First-Out) method.Step 1: Given…
Q: I need help with question is correct answer and financial accounting question
A: To calculate the interest Taylor Enterprises will receive at maturity on the 12-month CD, use the…
Q: Return on assets for 2007?
A: Average Total Assets = (Beginning Total Assets + Ending Total Assets)/2Average Total Assets =…
Q: Please provide the correct answer to this general accounting problem using accurate calculations.
A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's revenue and the…
Q: I need help with this financial accounting problem using accurate calculation methods.
A: Concept of Net Profit Margin:Net profit margin measures the percentage of revenue that remains as…
Q: Can you explain the process for solving this General accounting question accurately?
A: Step 1: Definition of Profit MarginProfit margin is a financial ratio that shows the percentage of…
Q: Shakespeare Motors has 12 employees and each employee is paid on average $165 per day and works 6…
A: To calculate the wages and salary payable for Shakespeare Motors on December 31:1. Determine the…
Q: A machine is purchased for $25,000 and has a salvage value of $3,000.
A: Concept of Depreciation:Depreciation is the process of allocating the cost of a tangible fixed asset…
Q: Please provide the accurate answer to this general accounting problem using appropriate methods.
A: Step 1: Definitions Concept of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM)…
Q: Please provide the correct answer to this general accounting problem using accurate calculations.
A: Step 1: Define Average Cost per Unit (Including Overhead)Average cost per unit is the total cost…
Q: Zenith's cash conversion cycle ?
A: To calculate Zenith Components' Cash Conversion Cycle (CCC), we use the following formula: CCC=Days…
Q: General accounting question correct option
A: Step 1: Definition of Gross MarginGross Margin is the difference between net sales revenue and the…
Q: Please help me solve this general accounting question using the right accounting principles.
A: Step 1: Definition of Equivalent Units for Conversion CostsEquivalent units for conversion costs…
Q: I need help solving this general accounting question with the proper methodology.
A: Step 1: Definition of Break-even Point (in units)The break-even point in units refers to the exact…
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 need help with this general accounting problem using proper accounting guidelines.
A: To estimate the total fixed cost using the high-low method, follow these steps: Step 1: Identify the…
Q: 10. Budgeted hours: 2,000, Actual hours: 1,800. Overhead rate: 20/hour. Calculate: Under-absorption…
A: To calculate the under-absorption or over-absorption of overheads, you can use the following…
Q: I am looking for the correct answer to this financial accounting problem using valid accounting…
A: Step 1: Definition of Break-Even Point (in Units)The break-even point (in units) is the number of…
Q: Need answer
A: Explanation of Raw Materials Used: Raw materials used represents the total value of materials that…
Q: Please provide the answer to this financial accounting question with proper steps.
A: Step 1: Definition of Stockholders' EquityStockholders' equity (also known as shareholders' equity…
Q: Provide answer
A: Explanation of Inventory: Inventory refers to the goods and materials a business holds for the…
Q: Accurate answer
A: Explanation of Cost:Cost refers to the original amount paid to purchase or produce an inventory…
Ans
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.
