13. In 2022, Company 13 sold its only product for $575 per unit. Variable costsper unit were $180. Fixed costs were $550,000. In 2023, the selling priceper unit is expected to fall by 9%, variable costs per unit are expected torise by 20%, while fixed costs are expected to rise by 3%. Since thecompany's stated objective for 2023 is to make a profit before tax of $1million, how many units must it sell?

The cost-volume-profit analysis is conducted by the companies to make decisions related to the units…

Answered: In 2022, Company 13 sold its only…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 60% of sales, and depreciation is expected to be $2.4 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 40%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet
Kling Inc. has only two retail and two wholesale customers. Information relating to each customer for 2020 follows: (Click the icon to view the customer-level operating income.) (Click the icon to view the data.) Kling's annual distribution-channel costs are $32,000 for wholesale customers and $13,000 for retail customers. The company's annual corporate costs are $45,000. There is no cause-and-effect or benefits-received relationship between any cost-allocation base and corporate-sustaining costs. That is, Kling could save corporate-sustaining costs only if the company completely shuts down. Requirement Prepare a customer-cost hierarchy report. First, determine the formula and then enter the amounts to calculate the total customer costs for each customer. (Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. = = income.) W. Region E. Region Stock Inc. Darby Corp + + + || || Total customer-level costs
Steber Packaging Inc. expects sales next year of $42 million. Of this total, 30 percent is expected to be for cash and the balance will be on credit, payable in 30 days. Operating expenses are expected to total $27 million. Accelerated depreciation is expected to total $8 million, although the company will only report $4 million of depreciation on its public financial reports. The marginal tax rate for Steber is 34 percent. Current assets now total $28 million and current liabilities total $15 million. Current assets are expected to increase to $33 million over the coming year. Current liabilities are expected to increase to $17 million. Compute the projected after-tax operating cash flow for Steber during the coming year. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places. $ million
Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount to $320,000, how much sales did Kailyn make for the year?
For 2021, Gourmet Kitchen Products reported $24 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $ capital. Its after-tax cost of capital is 9% and its wealth during 2021? Write out your answer completely. For
Please help me. Thankyou.
The factory producing ornaments has a production capacity of 1 million units/year. 750 thousand units/year production is planned for 2017. Since the sales value of a trinket is 0.7 $; Fixed expenses = 2300 $; Variable expenses = 0.2 $ / unit. How many productions need to be made to make a profit of 35000 $?
Iverson, Inc. has $1,292,000 of sales revenue, $693,000 of variable costs, and $673,000 of fixed costs in 2023. Assuming the contribution margin percentage stays the same in 2024, what will the break even point (in sales dollars) be?
The Carioco Company has two divisions that operate independently of one another. The financial data for the year 2022 reported the following results: Alpha Beta Sales $3,000,000 $2,500,000 Operating income 750,000 550,000 Taxable income 650,000 375,000 Investment 6,000,000 5,000,000 The company's desired rate of return is 10%. Income is defined as operating income. Required: What are the respective residual incomes for the Alpha and Beta Divisions? a. $150,000 and $50,000 b. $150,000 and $30,000 c. $50,000 and a negative $150,000 d. $30,000 and $50,000
(Whether to explore or not the foreign market). A company annually manufactures 10,000 units of a product at a cost of $ 4 per unit and there is home market for consuming the entire volume of production at the sale price of $ 4.25 per unit. In the year 2019, there is a fall in the demand for home market which can consume 10,000 units only at a sale price of $ 3.72 per unit. The analysis of the cost per 10,000 units i : $ $ Material 15,000 Fixed overheads 8,000 Wages 11,000 Variable overheads 6,000 The foreign market is explored and it is found that this market can consume 20,000 units of the product if offered at a sale price of $ 3.55 per unit. It is also discovered that for additional 1000 units of the product (over initial 10,000 units) the fixed overheads will increase by 10%. Is it worthwhile to try to capture the foreign market ?
The Berndt Corporation expects to have sales of $15 million. Costs other than depreciation are expected to be 80% of sales, and depreciation is expected to be $1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 40%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X THAAL Open spreadsheet a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $ b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to the nearest dollar. $ c. Now suppose that Congress changed the…
A company generates $5,000,000 in sales by selling 1.250,000 units at $4 per unit. Its variable costs equal 75 percent of sales and its fixed costs are $750,000. Therefore, the company's operating Income (EBIT) equals $500,000. The company estimates that if its EBIT were to increase 10 percent, its net income and EPS would increase 25.0 percent. How much will net income and EPS increase if sales increase by 10 percent? (Assume that the change in sales will have no effect on the company's tax rate.) O 67.9% O 60.1% O 70.0% O 65.3% O 62.5%

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