Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricingmodel with two alternatives for taxpayers: Standard Deduction (Standard) or ItemizedDeductions (Itemized). Price and variable costs for the two services are listed below.Standard Itemized Sales price (per return) $ 180.00 $ 510.00 Variable costs (per return) 140.00 290.00 The annual fixed costs at Grixdale are $490,000. Based on experience, theowner estimates that Standard Deduction returns represent 25 percent of the the firm'sbusiness. Required: How many Standard Deduction and Itemized Deduction returns mustbe filed annually to break even?

Breakeven point is where the fixed cost equals the contribution margin. When there are two or more…

Answered: ons (Itemized). Price and variable…

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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Use the below table to answer the following questions. Selling Price = $43.00 Fixed Cost $47,200 47, 200 47,200 57, 200 57, 200 57, 200 67,200 67,200 67,200 Required Variable Cost 15 16 17 15 16 17 15 16 17 2,200 $14,400 12, 200 10,000 4,400 2,200 (5,600) (7,800) (10,000) 3,200 $42,400 39, 200 36,000 32,400 29, 200 26,000 22,400 19, 200 16,000 Sales Volume 4,200 Profitability $70,400 66, 200 62,000 60,400 56,200 52,000 50,400 46, 200 42,000 5,200 $98,400 93,200 88,000 88,400 83,200 78,000 78,400 73,200 68,000 6, 200 $126,400 120, 200 114,000 116,400 110, 200 104,000 106,400 100, 200 94,000 a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an…
Given the following information, find dollar sales: a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00 b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382 c. Sales price per unit, $16.60; profit, $21,220; contribution margin, $9.29; fixed costs, $126,000
Lablanc Inc. sells a product for $60 per unit. The variable cost is $34 per unit, while fixed cost are $108,160. Determine (a) the break-even point in sales unit (b) the break-even point if the selling price weee increases to $66 per unit.
II. George Corporation has the following information for the current year: Selling price per unit Variable costs per unit Fixed costs Required: Prepare a cost-volume-profit graph identifying the following items: Total fixed costs line Total variable costs line Total costs line Total revenues line Breakeven point in sales dollars Breakeven point in units A. B. C. D. E. F. G. H. Dollars (S) Profit area Loss area 6,000 5,000 4,000 3,000 2,000 1,000 S 10.00 6.00 S $1,000.00 0 100 200 300 400 Qty (# Units) 500
Compute the contribution margin ratio and fixed costs using the following data. Sales $4,600 Variable costs $ 2,944 Income $ 540 Less: Sales Variable cost Contribution margin Numerator: Fixed Cost 1 Contribution Margin $ Contribution Margin Ratio Denominator: 1 4,600 2,944 = Contribution Margin Ratio Contribution margin ratio 0
Determine the missing amounts. 1. 2. 3. $ Unit Selling Price $800 $350 (e) $ $ Unit Variable Costs $336 (c) (f) $ Unit Contribution Margin $147 $800 (a) Contribution Margin Ratio % (b) % (d) 40 %
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
Sales (18,00e units) Variable expenses Contribution margin Fixed expenses $ 368,008 144,e00 216,eee 188,eee $ 36,000 Operating incone Required: Answer each question Independently based on the original data: 1. What is the product's CM ratio? 2 Use the CM ratio to determine the break-even polnt in sales dollars.
Based on analyzing the production.cost (Y) to units produced (X), the following relationship was found Y= S5000 - 520X The $5.000 in the equarion represents Select one Oa. Varlable production.costs per unit. లీ D- 78ed Drodocs on ఉంక ఏ01 Ur 2 ENone.of the anawers given d. Total variable production costs. Oe.Total fixed production costs
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…
The following information are available for X Corp: (The company uses actual costing). What is the Profit in 2019 under absorption costing? 2019 Beginning Inventory None Production 10,000 units Ending Inventory 3,500 units Sales at 2 per unit ?? Variable Mfg cost in total pesos 7,500 Fixed Mfg cost 5,000 OPEX (50% FC) 4,500 2020 Beginning Inventory ?? Production 9,000 units Ending Inventory 1,000 units Sales at 2 per unit ?? Variable Mfg cost in total pesos ?? Fixed Mfg cost 5,400 (increased by 400 for change of total FC of the company) OPEX (50% FC) 7,500
Consider the following information: Retail price per unit: Wholesale price per unit: Manufacturer's price per unit: Manufacturer's variable cost: Retailer's fixed costs per quarter: Wholesaler's fixed costs per quarter: Manufacturer's fixed costs per quarter: Retailer's unit sales this quarter: Wholesaler's unit sales this quarter: Manufacturer's unit sales this quarter: $150 O $90.91 O $111.12 O $72.50 O $145.46 $80 $50 $35 $75,000 $1,750,000 $2,500,000 1,800 80,000 160,000 If the wholesaler wants his margin to be 45%, but doesn't believe he can convince the manufacturer to lower her price below $50, what price does the wholesaler need to charge the retailer? O Search

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ons (Itemized). Price and variable costs for the d Itemized Sales price (per return) $ 180.00 $ 290.00 The annual fixed costs at Grixdale are