Falcon Exterminators purchased equipment costing $180,000 with a useful life of 6 years (straight-line). The company incurs $90,000 fixed costs per year. Variable cost per service = $50, price per service = $130, and number of customers 525. What is the annual profit? -

Falcon Exterminators purchased equipment costing $180,000 with a useful life of 6 years (straight-line). The company incurs $90,000 fixed costs per year. Variable cost per service = $50, price per service = $130, and number of customers 525. What is the annual profit? -

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

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Question

I need assistance with this general accounting question using appropriate principles.

Falcon Exterminators purchased equipment costing
$180,000 with a useful life of 6 years (straight-line). The
company incurs $90,000 fixed costs per year. Variable cost
per service = $50, price per service = $130, and number
of customers 525. What is the annual profit?
-

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Brownstone Windows is a small company that installs windows. Its cost structure is as follows: E (Click the icon to view the cost structure.) Brownstone Windows' breakeven revenues is $740,000 and breakeven units is 1,850. Calculate the margin of safety in units and dollars and the margin of safety percentage in dollars if Brownstone Windows expects to sell 3,200 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Margin of safety in dollars Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Margin of safety in units Finally, calculate the margin of safety percentage in dollars if Brownstone Windows expects to sell 3,200 windows in the year. Select the formula labels, then enter the amounts and calculate the margin of safety percentage. (Round your final percentage to one decimal…