What were total sales for the year? Meagher Inc. has a contribution margin ratio of 40% anda breakeven point of $200,000 in sales. If the firm reportsa net income of $100,000 before taxes of 50%, whatwere total sales for the year?a. $450,000b. $466,667c. $500,000d. None of the above

Step 1:Here we can use sales for target profit formula Target profit= $100,000 Formula= (Fixed cost+…

Answered: Meagher Inc. has a contribution margin…

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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Last year, a company reported sales of $715.5k, a contribution margin ratio of 39.25% and a net loss of $23.8k. Based on this information, determine the company’s dollar sales to break-even. Note: The term “k” is used to represent thousands (× $1,000).
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company's variable costs are 60% of the selling price and fixed costs are $121,900. If the company's tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82 b. $1.57 c. $2.35 d. $2.05 e. $1.17 f. $1.37 g. $1.77 h. None of the above.
XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 20%, by how much will profits increase? а. None of the given answer is correct. O b. 30% O c. 90% O d. 15% е. 60%
XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how much will ?profits increase 15% .a O .None of the given answer is correct .b O 30% .c O 90% .d O 60% .e O
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company’s variable costs are 60% of the selling price and fixed costs are $121,900. If the company’s tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82b. $1.57c. $2.35d. $2.05e. $1.17f. $1.37g. $1.77h. None of the above.
Zain glassware has made the forecast of sales shown in the following table. Also given is the probability of each level of sales. Sales Probability Rs. 200,000 .20 300,000 .60 400,000 .20 The firm has fixed operating costs of Rs. 75,000 and variable operating costs equal to the 70% level of sales. The company pays Rs. 12,000 in interest per period. The tax rate is 40%. Compute the earnings before interest and taxes (EBIT) for each level of sales. Compute the earnings per share (EPS) for each level of sales, the expected EPS, the standard deviation of the EPS and the coefficient of variation of EPS, assuming that there are 10,000 shares of common stock outstanding. Zain glassware has the opportunity to reduce its leverage to zero and pay no interest. This will require that the number of shares of common stock outstanding be increased to 15,000. Repeat (b) under this assumption. Compare your findings in (b) and (c) and comment on the reduction…
Based on the cost and revenue structure on the income statement, what was NUBD’s break-even point in pesos?
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Creswell Corporation's fixed monthly expenses are $31,000 and it's contribution margin ratio is 65%...

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Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports a net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above