Meridian Manufacturing had a margin of safety of $240,000 last quarter, with sales revenue of $960,000 and fixed costs of $252,000. How much would sales have to increase for Meridian to earn a profit of $378,000?

Meridian Manufacturing had a margin of safety of $240,000 last quarter, with sales revenue of $960,000 and fixed costs of $252,000. How much would sales have to increase for Meridian to earn a profit of $378,000?

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 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Solution needed urg

A: Part 1: How does business model evolution affect accounting adaptation?Correct Answer: a) Changing…

Q: Can you help me with accounting questions

A: Step 1: Definition of Sales and Gross ProfitSales revenue refers to the total amount generated from…

Q: what is the inventory days of supply (DOS)?

A: What is Inventory Days of Supply (DOS)? Inventory Days of Supply (DOS) is a metric that measures how…

Q: Electronica Ltd. sells home appliances online. The budgeted cost of the sales order processing…

A: Step 1: Definition of Activity RateThe activity rate is a cost allocation measure in activity-based…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Lower of Cost or Market (LCM)The Lower of Cost or Market (LCM) rule is an…

Q: hi tutor provide answer General accounting question

A: Step 1: Define High-Low MethodThe high-low method is used to separate fixed and variable costs when…

Q: What is the net realizable value (nrv) of account receivable? General accounting question

A: Step 1: Define Accounts Receivable and Net Realizable ValueAccounts receivable represent the amount…

Q: Burson Enterprises' May 31 bank reconciliation shows deposits in transit of $850. The general ledger…

A: Deposits in Transit (May 31) = $850Total Cash Receipts in June (per book) = $48,500Total Deposits…

Q: Job 528 was one of the many jobs started and completed during the year. The job required $11,200 in…

A: Explanation of Unit Product Cost:Unit Product Cost refers to the total cost incurred to manufacture…

Q: The Sodus Company produces engine parts for car manufacturers. A new accountant intern at Sodus has…

A: Step 1: Actual ResultsFlexible-Budget VarianceFlexible BudgetSales-Volume VarianceStatic…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Sales Revenue RecognitionSales revenue is the income earned from selling goods…

Q: I want to correct answer general accounting question

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…

Q: What is the company's cost of equity?? Financial accounting

Q: General accounting

A: Step 1: Define Money Creation (Money Multiplier)The Money Multiplier is the ratio that determines…

Q: Sierra Adventures has a net income of $3 million this year. The book value of Sierra Adventures'…

A: Step 2: Step 3: Step 4:

Q: What is the value of the current liabilities of the general accounting?

A: Step 1: Definition of Net Working CapitalNet Working Capital (NWC) is the difference between a…

Q: Help with accounting

A: The receivable turnover ratio is calculated using the formula:Receivable Turnover Ratio = Net Credit…

Q: None

A: To determine the company's profit margin, we use the following formula: Profit Margin=(SalesNet…

Q: At the end of the year, a company's accounts receivable balance is $600,000, while its total credit…

A: Step 1: Definition of Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) is a financial metric…

Q: Help me with this

A: To determine the gain Samuel must recognize if he does not rebuild or acquire a replacement home, we…

Q: Carlisle Lawn Services' year-end 2023 balance sheet lists current assets of $520,400, fixed assets…

A: Explanation of Total Assets:Total assets refer to the combined value of everything a company owns…

Q: Sub general accounting

A: Step 1: Definition of Quick RatioThe quick ratio (also known as the acid-test ratio) is a financial…

Q: general accounting

A: Step 1: Definition of Ending Work in Process (WIP) InventoryEnding Work in Process (WIP) Inventory…

Q: At the end of the fiscal year 2023, Elliott Manufacturing Co. had net property, plant, and equipment…

A: Explanation of Net Property, Plant, and Equipment (PPE):Net Property, Plant, and Equipment (PPE)…

Q: Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes…

Q: A company borrowed $12,500 by signing a 150-day promissory note at 7.5% interest. What is the…

A: Given Information:Principal (P) = $12,500Interest Rate (r) = 7.5% per year (0.075 in decimal…

Q: The Tamarisk Marine Supply Company's bank statement for the month of November showed a balance per…

A: Step 1: Adjusting Entry to correct an error in recording Check No. 138Since the payment is recorded…

Q: General accounting

A: Step 1: Definition of Receivable Turnover RatioThe Receivable Turnover Ratio measures how…

Q: Get correct answer with accounting

A: Step 1: Definition of Asset TurnoverAsset turnover is a financial ratio that measures how…

Q: Carla Vista Company had $212,200 of net income in 2024 when the unit selling price was $151, the…

A: Compute the contribution margin per unit.CM per unit = Unit selling price - Unit variable costsCM…

Q: None

A: Answer:ROE=15.08%

Q: general accounting

A: Step 1: Define Operating Cash Flow (OCF)Operating Cash Flow (OCF) refers to the cash generated from…

Q: Murdock Corporation's July 31 bank reconciliation shows deposits in transit of $1,800. The general…

A: Explanation of Deposits in Transit:Deposits in transit refer to cash or check deposits recorded in a…

Q: The income statement, which presents the results of operations, can be prepared in many forms…

A: The correct answer is:d. All of the aboveExplanation:The income statement presents a company's…

Q: help

A: The problem provides the following financial information for Corry Inc:Return on Assets (ROA) =…

Q: Sirus Co purchased tool sharpening equipment on October 1 for $47,250. The equipment was expected to…

A: To compute depreciation expense under Straight line method: Year 1$3,825Year 2$15,300Year…

Q: Ellison corporation total assets on December

A: Explanation of Assets:Assets are resources owned by a business that have measurable economic value…

Q: What is the target stock price in one year? Accounting

A: To calculate the target stock price in one year, we need to use the Price-to-Earnings (P/E) ratio…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…

Q: Financial accounting

A: Step 1: Define Variable Overhead Efficiency VarianceThe Variable Overhead Efficiency Variance…

Q: The variable overhead efficiency variance for june ?

A: Explanation of Standard Direct Labor Hours:Standard direct labor hours refer to the predetermined…

Q: What is the discounted payback period? General accounting question

A: To determine the discounted payback period for an investment with an initial cost of $20,000 and…

Q: Soove these accounts qn fastly

A: Part 1: How does business model evolution affect accounting adaptation?Correct Answer: (a) Changing…

Q: Blueberry Corp. plans to tighten its credit policy. The new policy will decrease the average number…

A: The key changes:Collection period: 65 days → 45 daysCredit sales ratio: 80% → 70%Sales impact: 8%…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Allowance for Sales ReturnsThe Allowance for Sales Returns is a contra-revenue…

Q: General accounting

A: Step 1: Define Debt-to-Equity RatioThe Debt-to-Equity Ratio (D/E Ratio) measures a company's…

Q: Calculate the contribution per unit

A: Explanation of Variable Costs:Variable costs are expenses that change in direct proportion to the…

Q: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major…

A: The formula for break-even point is :Break-even point =Selling Price per Unit−Variable Cost per…

Q: What is the firm's Return on Assets (ROA)?

A: Solution ExplanationWe are given:Profit Margin = 7.5%Sales = $18,900,000Total Assets = $13,600,000We…

Q: Direct rate variance

A: Explanation of Direct Labor Rate Variance:The direct labor rate variance is the difference between…

Question

100%

provide correct answer of this General accounting question

Meridian Manufacturing had a margin of safety of
$240,000 last quarter, with sales revenue of $960,000
and fixed costs of $252,000. How much would sales
have to increase for Meridian to earn a profit of
$378,000?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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?
What is the actual profit?
Boise Corp had a margin of safety of $375,000 last month, with sales revenue of $1,020,000 and fixed costs of $316,050. a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did Boise earn last month? d. How much would sales have to increase for Boise to earn profit of $726,670?
If the company wants to earn a profit of $35,000 instead of breaking even, what is the amount of sales the company must achieve? Given information: Fixed Expenses Rent = $ 24,000 Salaries = $ 40,000 Depreciation = $ 13,000 Variable Expenses Cost of Goods Sold = 28% of sales Supplies = 17% of sales Sales Commissions = 10% of sales
What level of sales is required to achieve a net income of $80,000?
A company is analyzing its break-even point for a product with a selling price of $63 per unit. The variable cost per unit is $42, and the fixed costs are $212,000 per year. If the company wants to achieve a profit of $57,000, how many units must it sell to meet this profit goal? Help
Answer this Financial Accounting Problem
A company is analyzing its break-even point for a product with a selling price of $63 per unit. The variable cost per unit is $42, and the fixed costs are $212,000 per year. If the company wants to achieve a profit of $57,000, how many units must it sell to meet this profit goal?
What would the result be on these financial accounting question?
A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. a. What is the break-even point in sales dollars? $ b. What is the operating income? $ c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000?
The Rachel Company has sales of $820,000, and the break-even point in sales dollars is $672,400. Determine the company's margin of safety as a percent of current sales.
Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000. Calculate the contribution margin percentage. Calculate the selling price if variable costs are $16 per unit. Suppose 75 000 units are sold, calculate the profit earned. Willo the company beprofitable if able to sell 30,000 units? Explain. What should the company do to increase its profit above break-even point.