Sales Extraordinaire sells one photo frame. The sales price per unit is $9. The variable cost per unit is $6. Fixed costs per annum are $11,000 and having a sales volume of 6,000 photo frames would result in: a. a profit of $3,000 b. a loss of $1,000 c. breaking even d. a profit of $7,000

Sales Extraordinaire sells one photo frame. The sales price per unit is $9. The variable cost per unit is $6. Fixed costs per annum are $11,000 and having a sales volume of 6,000 photo frames would result in: a. a profit of $3,000 b. a loss of $1,000 c. breaking even d. a profit of $7,000

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: Financial accounting problem

A: Explanation of Gross Wages:Gross wages refer to the total amount an employee earns before any…

Q: General Accounting question

A: Step 1:First calculate the earnings before interest and taxes: Times interest earned ratio =…

Q: Rolles company has a contribution margin ratio

A: Formula:Increase in Profit=(Increase in Sales×Contribution Margin Ratio)−Increase in Fixed…

Q: I want to correct answer general accounting question

A: Explanation for a: Standard direct labor rate per hour will be calculated as = Base hourly wage +…

Q: Answer this general Accounting Question

A: Concept of Break-Even Point: The break-even point is the level of sales at which total revenue…

Q: Answer? ? Financial accounting question

A: Step 1: Calculate Total Manufacturing Costs• Add Direct Labor, Direct Materials Used, and Total…

Q: Give me Answer

A: Option a: This option is incorrect because borrowing costs are not always expensed. While some…

Q: I want answer

A: Step 1:a. The overhead rate per direct labor cost is calculated as follows: Overhead rate = Total…

Q: Which statement is true for this general accounting question?

A: Option a: This option is incorrect because the incremental cost is $5 per unit. Option b: This…

Q: Sub: financial accounting

A: Consolidation in financial reporting refers to the process by which a parent company combines its…

Q: The net income of the year?

A: Explanation of Owner's Equity: Owner's equity represents the owner's financial interest or net worth…

Q: Tiago's Electronics uses a standard costing system

A: Concept of Standard Costing SystemThe standard costing system is a managerial accounting method used…

Q: Expert please provide answer

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

Q: Do fast answer of this general accounting question

A: To calculate the gain or loss realized by Jenkins Corporation, we subtract the adjusted basis of the…

Q: The stockholders equity at the end of the year?

A: To calculate stockholders' equity at the end of the year, we use the following formula:…

Q: A company's manufacturing overhead includes $7.10 per machine hour for variable manufacturing…

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is the rate used to…

Q: None

A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a…

Q: Kindly help me with general accounting question

A: Step 1: Define Plantwide Overhead RateThe Plantwide Overhead Rate is the rate used to allocate…

Q: Provide answer

A: Explanation of Revenues:Revenues refer to the total amount of money a company earns from its core…

Q: Net opreting income should increase?

A: Key FormulaThe percentage increase in net operating income (NOI) is calculated as Percentage…

Q: Vernon Company reported the following data regarding the product it sells

A: Explanation of Contribution Margin Ratio (CMR):The contribution margin ratio (CMR) is the percentage…

Q: Answer this Question

A: To calculate La More Company's 2013 net income using cash basis accounting, we only recognize cash…

Q: Answer this account problem

A: Explanation of Gross Profit: Gross profit represents the difference between sales revenue and the…

Q: Financial Accounting Question

A: To calculate the holding period return (HPR), we use the following formula: HPR = (Final Value -…

Q: What's the amount of gain/loss?

A: Explanation of Fixed Asset: A fixed asset is a long-term tangible piece of property that a company…

Q: What is the answer

A: Step 1: Increase in contribution margin Increase in contribution margin = Increase in sales x (Sales…

Q: Help me with this accounting question

A: Step 1: Identify the UnitsBeginning Work in Process (BWIP): 5,300 units (already started in the…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Gross Margin PercentageGross Margin Percentage represents the proportion of…

Q: What is the cost of the equipment? Solve this question general Accounting

A: Total Cost Solution= purchase price + sales tax + freight charges + installation costs= $30,000 +…

Q: General accounting

A: a. Value of Shareholders' EquityThe formula to calculate the value of shareholders' equity is:…

Q: General Accounting

A: Step 1:The differential cost is the additional cost incurred by the company by making the product…

Q: None

A: Step 1: Define Plant wide Overhead RateA plant wide overhead rate is a single overhead rate used to…

Q: Financial Accounting please help

A: 1. Calculate Quick Assets:Quick Ratio = Quick Assets / Current LiabilitiesQuick Assets = Quick Ratio…

Q: Please given correct answer

A: I solved the problem by first gathering the key facts: total dividends, number of preferred shares,…

Q: A company is considering whether to adopt a new accounting software system. Discuss the potential…

A: New accounting software implementation may provide considerable benefits to the company. Most of the…

Q: Calculate the business return on assets?

A: Approach to solving the question:Freeform Detailed explanation: The computation of Return on Assets…

Q: Expert need your advice

A: Explanation of Job Costing System: A job costing system is a method of cost accounting that tracks…

Q: How much are total assets

A: To calculate total assets, we need to sum up all the asset accounts. From the given information, the…

Q: Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a…

A: To calculate the cost of PPS in the flexible budget, we follow these steps: Step 1: Calculate the…

Q: No ai for this general accounting q

A: 1. Calculate the Book Value of the Asset:Book Value = Cost - Accumulated DepreciationBook Value =…

Q: What is the total amount of your capital gains on this investment?

A: To calculate the total capital gains, we need to consider both the stock price appreciation and the…

Q: Need help

A: The question requires the determination of the overhead cost allocated to a specific…

Q: A company is considering whether to adopt a new accounting software system. Discuss the potential…

A: Step 1: Potential benefits of implementing new accounting softwareEnhances efficiency: An accounting…

Q: Need answer

A: Explanation of Gross Profit Method:The gross profit method is a technique used to estimate ending…

Q: A company is considering whether to adopt a new lease accounting standard. Discuss the potential…

A: Definitions Related to the Question1. Lease Accounting Standard: A lease accounting standard…

Q: What is the company's return on equity on these financial accounting question?

A: Step 1: Formulas Equity = Assets - LiabilitiesNet income = Profit margin x SalesReturn on equity =…

Q: What is chasse's free cash flow and cash flow adequacy ratio??

A: To calculate free cash flow and the cash flow adequacy ratio, let's break it down step by step. 1.…

Q: kindly help me with accounting question

A: Step 1: Identify the selling price of the tennis racketStep 2: Identify the cost price of the tennis…

Q: Zinski Co. paid $150,000 for a purchase that included land, building, and office furniture. An…

A: Concept of Allocation of Costs:Allocation of costs refers to the process of assigning a proportion…

Q: What is the total amount of your capital gains on this investment? General accounting

A: To calculate the total capital gains from your investment in ABC Co., follow these steps:1.…

Question

100%

Want answer

Sales Extraordinaire sells one photo frame. The sales
price per unit is $9. The variable cost per unit is $6. Fixed
costs per annum are $11,000 and having a sales volume
of 6,000 photo frames would result in:
a. a profit of $3,000
b. a loss of $1,000
c. breaking even
d. a profit of $7,000

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

What would the result be on these financial accounting question?
A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.
I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sales is 11.000 units. 1. The corporation's contribution margin per unit and as a percent of sales (CMR) is? 2. The corporation's break-even point is? 3. If the corporation desires to eam profit of P20,000 before tax, it must generate sales of? 4. If the corporation pays corporate income tax at the rate of 25%, and it desires to eam after-tax profit of P21,000, it must generate sales of? 5. With an average monthly sale of 11,000 units, the corporation's margin of safety is? 6. The margin of safety ratio and the break-even sales ratio are? 7. If fixed costs will increase by P20,000, the break even point in units will increase(decrease) by? 8. If variable costs per unit will go up by P5, the peso break-even sales will increase (decrease) to? 9. If selling price will increase to P30, the…
2. lle Patrice has just graduated university and is thinking about opening "Surf Shop" to sell surfboards. Basic surfboards are manufactured by a local company and the cost to purchase each surfboard is $350. Patrice plans to paint a scene on each surfboard himself so that each surfboard is unique. The estimated cost for paint and supplies is $50 per unit and the labor cost for painting the scene is zero. Pat estimates that each unique surfboard can sell for $1,000.00. Other costs include rent for the shop of $24,000 annually and advertising of $16,000 annually. Patrice also plans to hire a full- time manager at an annual salary of $80,000. Required: You must show all your calculations in order to get marks. If you provide the answer only you will not receive any marks. 1. What is the contribution margin per unit in $$. What is the contribution margin ratio? re to search cer
Please provide true solution for this general accounting question
Anderson Company's break-even point in units is 2,150. The sales price per unit is $10 and the variable cost per unit is $5. If the company sells 5,200 units, what will its net income be? a. $25,500 b. $15,250 c. $11,700 d. $19,750 e. $26,000
Help UOHPMB251 Corp. has a 20% margin of safety percentage based on its actual sales. The break-even point is $748,000 and the variable expenses are 40% of sales. (ID#36938) Q.) What's UOHPMB251's actual profit? A.) $ Next > < Prev 19 of 25
If Sales are $2,000,000 and the Break Even point is $1,500,000. What is the Margin of Safety (ratio)? A. 33% B. 175% C. 25% D. 75%
Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/ decreases by how much? Sales $50,000 Variable Costs $7,500 Fixed Costs $28,000
Dirth Company sells only one product at a regular price of £7.50 per unit. Variable expenses are 60 per cent of sales and fixed expenses are £30,000. Management has decided to decrease the selling price to £6.00 in hopes of increasing its volume of sales. What is the monetary sales level required to break even at the old price of £7.50? Select one: O A. £50,000 O B. £18,000 O C. £12,000 OD. £75,000
Weber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?
James Company has a margin of safety percentage of 20%. The break-even point is £200,000 and the variable expenses are 45% of sales. Given this information, the operating profit is: Select one: O A. £27,500 O B. £18,000 O C. £22,500 O D. £22,000