Lydia's Bakery has a monthly target operating income of $8,000. Variable expenses are 35% of sales, and monthly fixed expenses are $4,500. What is Lydia's operating leverage factor at the target level of operating income?
Q: A company produces a single product. Variable production costs are $18.2 per unit, and variable…
A: Meaning of Variable CostingVariable costing, also known as direct costing, is a method of inventory…
Q: Using machine hours as a base, what is the amount of overhead applied during the year if actual…
A: Concept of Predetermined Overhead Rate:The predetermined overhead rate is a rate used to allocate…
Q: Calculate hamilton accessories total assets
A: The problem provides us with the following information:Return on Assets (ROA) = 9.5%Profit Margin =…
Q: I need help with this general accounting question using the proper accounting approach.
A: Step 1: Detailed Explanation of Inventory Turnover RatioThe inventory turnover ratio is a measure of…
Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution
A: To evaluate the best after-tax return among the three investment opportunities for Riverstone Inc.,…
Q: subject general accounting
A: Step 1: Definition of Net SalesNet Sales is a financial metric that represents the actual revenue a…
Q: Answer
A: Explanation of Total Cost: Total cost represents the sum of all expenses incurred by a business…
Q: Can you help me solve this general accounting problem using the correct accounting process?
A: Step 1: Detailed Explanation of Flexible Budget VarianceThe Flexible Budget Variance measures the…
Q: If sales revenue is $280 million and accounts receivable decreased by $30 million, the amount of…
A: Step 1: Definitions Concept of Sales Revenue:Sales revenue is the total amount earned by a business…
Q: Hii teacher please provide for General accounting question answer do fast
A: Step 1: Detailed Explanation of Traditional Costing SystemIn a traditional costing system, overhead…
Q: The basis of asingle overhead allocation rate based on direct labor hours?
A: Explanation of Overhead Cost:Overhead costs refer to indirect production costs that cannot be…
Q: Please explain the accurate process for solving this financial accounting question with proper…
A: Step 1: Detailed Explanation of Profitability Ratios (or Return on Sales)The profitability ratio or…
Q: Please explain the correct approach for solving this general accounting question.
A: Step 1: DefinitionsConcept of Cash Flow to Shareholders:Cash flow to shareholders refers to the…
Q: I am looking for the correct answer to this general accounting question with appropriate…
A: Step 1: Detailed Explanation of Lease LiabilityA lease liability is the amount a lessee owes under a…
Q: Given solution for General accounting question not use ai
A: Step 1: Detailed Explanation of Futures ContractA futures contract is a financial agreement between…
Q: Please provide the accurate solution to this financial accounting question using valid calculations.
A: Concept of Earnings Per Share (EPS):Earnings Per Share (EPS) is a financial metric that indicates…
Q: Young Industries' unadjusted COGS for 2022 was $118,500. They had a $12,400 unfavorable direct labor…
A: Explanation of Cost of Goods Sold (COGS): Cost of Goods Sold represents the direct costs…
Q: Solve this Accounting question
A: Explanation of Contribution Margin: Contribution margin represents the portion of sales revenue that…
Q: I want to this question answer for General accounting question not need ai solution
A: Step 1: Detailed Explanation of Direct Materials Price VarianceThe Direct Materials Price Variance…
Q: Please provide the correct answer to this general accounting problem using valid calculations.
A: Step 1: Detailed explanation of Units Transferred to TestingTo compute the number of units…
Q: Hello tutor please help me this question
A: Step 1: Definition of High-Low MethodThe High-Low Method is a cost estimation technique used to…
Q: The inventory at the end of the year?
A: Explanation of Variable Costing:Variable costing is a costing method where only variable production…
Q: Can you explain the process for solving this financial accounting question accurately?
A: Step 1: Detailed Explanation of Flexible Budget Variance CalculationThe flexible budget variance is…
Q: Hii teacher please provide for General accounting question answer do fast
A: Step 1: Detailed Explanation of EquityEquity is the residual value of a company's assets after all…
Q: I am looking for help with this general accounting question using proper accounting standards.
A: Step 1: Detailed Explanation of Cost of Goods Manufactured (COGM)The Cost of Goods Manufactured…
Q: During August, Melody's Boutique spent $1,200 to buy 40 handcrafted jewelry boxes and sold 8 of them…
A: Step 1: DefinitionsConcept of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) refers to the…
Q: step by step answer
A: Concept of Absorption Costing:Absorption costing is a method of inventory valuation in which all…
Q: Standard variable manufacturing overhead allocation rate is?
A: Explanation of Manufacturing Overhead: Manufacturing overhead represents all manufacturing costs…
Q: general accounting
A: Step 1: Detailed Explanation of Stock RepurchaseA stock repurchase occurs when a company buys back…
Q: The company is using predetermined overhead rate
A: Explanation of Work in Process Inventory (WIP):Work in Process Inventory refers to the cost of…
Q: Bayshore Equipment Co. reports that its manufacturing overhead is 60% of its total conversion costs.…
A: Provided Data:Direct Labor = $52,000Direct Materials = $34,000Manufacturing Overhead is 60% of Total…
Q: Don't use ai given answer accounting question
A: a) Total assets turnoverReturn on Assets (ROA) is computed with this formula:ROA = profit margin x…
Q: Month Monthly Product Demand 2021-01-01 207.55 2021-02-01 208.25 2021-03-01 209.33…
A: Step 1: Load the DataOpen Excel.Are you ready to get started with potentially using Power BI in your…
Q: Want answer step by step
A:
Q: Which of the following statements is true?
A: Meaning of Labor Efficiency Variance:Labor efficiency variance measures the difference between the…
Q: I need the correct answer to this general accounting problem using the standard accounting approach.
A: Step 1: Detailed Explanation of Units-of-Activity Depreciation The units-of-activity method (also…
Q: Thompson & Sons values its goodwill at four years' purchase of the last five years' average…
A: Explanation of Average Profit:Average profit is calculated by summing the net profits of several…
Q: Taylor Manufacturing had the following results of operations for the past year:
A: Concept of Variable Cost:Variable cost refers to expenses that change in direct proportion to…
Q: Can you explain the process for solving this financial accounting question accurately?
A: Step 1: Detailed Explanation of Treasury Stock PurchaseA treasury stock purchase occurs when a…
Q: What was net capital spending
A: To calculate net capital spending, use this formula:Net Capital Spending = Ending Net Fixed Assets -…
Q: The inventory cost for each notebook related to the fixed production overhead is closest to?
A: Concept of Fixed Production Overhead:Fixed production overhead refers to manufacturing costs that do…
Q: 4 POINT
A: Explanation of Fixed Manufacturing Costs:Fixed manufacturing costs are expenses that do not change…
Q: I am searching for the accurate solution to this general accounting problem with the right approach.
A: Step 1: Detailed Explanation of Units-of-Production (UOP) DepreciationUnits-of-production (UOP)…
Q: Dunwell Industries produced 8,500 units during March. The standard quantity of material allowed per…
A: Provided Data:Actual output = 8,500 unitsStandard quantity per unit = 10 poundsStandard cost per…
Q: Please show me the correct approach to solving this financial accounting question with proper…
A: Concept of Earnings Per Share (EPS)Earnings Per Share (EPS) is a financial metric that represents…
Q: Need answer the accounting question not use ai please don't
A:
Q: What is the beginning and ending amount of equity ?
A: Step 1: Definitions Concept of Owner's Equity:Owner's equity refers to the owner's residual claim on…
Q: Please help me solve this general accounting question using the right accounting principles.
A: Calculation of Gross ProfitGross Profit = Sales - Cost of Goods Sold = $450,000 - $280,000 =…
Q: Hi experts provide correct answer this accounting question
A: 1. For this question the answer would be $2.50 but it is not given in the choices. To get the…
Q: Linden Production Company observed that, during its busiest month of 2023, maintenance costs totaled…
A: Meaning of High-Low Method:The high-low method is a cost estimation technique used to separate mixed…
Could you explain the steps for solving this general accounting question accurately?
Step by step
Solved in 2 steps
- 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?Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
- Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution margin. Its fixed costs are $200,000. Ice Company has current sales of $420,000 and a 30% contribution margin. Its fixed costs are $90,000. What is the margin of safety for Fire and Ice? Compare the margin of safety in dollars between the two companies. Which is stronger? Compare the margin of safety in percentage between the two companies. Now which one is stronger? Compute the degree of operating leverage for both companies. Which company will benefit most from a 10% increase in sales? Explain why. Illustrate your findings in an Income Statement that is increased by 10%.Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.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.
- If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has current sales of $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. What is the margin of safety for jaka rta and Maldives? Compare the margin of safety in dollars between the two companies. Which is stronger? Compare the margin of safety in percentage between the two companies. Now, which one is stronger? Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why. Illustrate your findings in an Income Statement that is increased by 15%.
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. 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 October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Hammonds variable cost ratio? Its contribution margin ratio? 2. Suppose Hammonds actual revenues are 200,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Hammond earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Hammond generate to earn a before-tax profit of 130,000? An after-tax profit of 90,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.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?
