cesR&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of taxreturns follow. Fixed costs total $48,640.Type of ReturnSales Mix Fee ChargedEasy30%$ 70Moderate50%170Business20%410Variable Costper Return(1) Determine the weighted-average contribution margin.EasyModerateBusiness$ 40100250Sales mixContribution margin per returnTotal per unit+30%50%20%Weighted-average contribution margin(2) Determine the break-even point in units using the weighted-average contribution margin.Numerator:Denominator:(3) Determine the number of units of each product that will be sold at the break-even point.Number of units to break even.Sales mixEasyModerateBusinessBreak Even UnitsBreak even unitsUnits sales at the break-even point

The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Answered: R&R Tax Service offers tax and…

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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Carla Vista Company is considering two alternatives. Alternative A will have revenues of $148.000 and costs of $104,200. Alternative Bwill have revenues of $188.000 and costs of $123.800. Compare Alternative A to Alternative B showing incremental revenues. costs, and net income. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (45)) Alternative Alternative B Net Income Increase (Decrease) Revenues Costs Net Income is better than 5 S
Consider the following income statement for Larry & Harry drug stores: Revenue - 90mm Variable costs- 48mm Interest on debt- 6mm Depreciation- 0 mm It’s tax rate is 25% and the book value of its equity is 150mm. What is L&H’s coverage ratio? A) 0.18 B) 5.25 C) 6 D) 7 E) 8 F)15
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It is due today. Please help! Can you help me find/solve the following? 1. PRIME COST (F+B+LABOR) 2. TOTAL COSTS OF SALES 3. TOTAL GROSS PROFIT 4. TOTAL INCOME 5. TOTAL INCOME LESS CONTROLLABLE 6. TOTAL OCCUPANCY COSTS 7. INCOME BEFORE INT, DEPR & TAX 8. TOTAL INTEREST EXPENSES 9. TOTAL DEPRECIATION EXPENSES 10. NET PROFIT or (LOSS)
Rings company has three product lines A, B and C. The following financial information is available:
1. Shown below is an income statement in the traditional format for Ellie Inc, which has a contribution margin ratio of 25%. Sales ...... Cost of goods sold... Gross profit...... Operating expenses: Selling... Administrative.... Operating income $100,000 (70,000) $ 30,000 (5,000) (10,000) $ 15,000 Prepare an income statement in the contribution margin format. b. Calculate the sales per unit, variable expense per unit, and contribution margin per unit if 10,000 units were produced and sold. c. Calculate the cost formula (Y=a+bX). d. Calculate the firm's break even point in units.
The following information is available for Concord Corporation: Total fixed $150000 expenses == Total variable. 320000 expenses Sales Cost of goods sold $570000 370000 A CVP income statement would report O gross profit of $250000, contribution margin of $420000. Ogross profit of $200000. O contribution margin of $250000.
3-50. Extensions of the CVP Model-Multiple Products Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corpora- tions, The tax returns have the following characteristics: Individuals Partnerships Corporations Price charged per tax return Varlabie cost per tax return (including wage pald to tax preparer).... Expected tax returns prepared per year .. $200 $1,000 $2,000 $180 60,000 $900 4,000 $1,800 16,000 The total fixed costs per year for the company are $3,690,000. Required What is the anticipated level of profits for the expected sales volumes? a Assuming that the product mix is the same at the break-even point, compute the break-even point. Suppose the product sales mix changes so that, for every ten tax returns prepared, six are for individuals, one is for a partnership, and three are for corporations. Now what is the break- even volume for Sell Block?
Based on the pro - forma income statement, please estimate OCF and complete the tables. Sales 125,000 Variable costs -29, 000 Fixed costs -30,000 Depreciation -12,800 EBIT 53, 200 Tax -18, 620 NI 34, 580 Enter your final answers as whole numbers without using 1000 separators. Use a " -" sign for cash costs, expenses, cash outflows. (1) Starting from EBIT EBIT + Depreciation - Tax OCF? = OCF What is EBIT? What is Depreciation? What is Tax? What is
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