Stairway Company sells a single product. The company's most recent income statement is given below: Sales (5,000 units) 200,000 Less:Variable expenses 120,000 Contribution margin 80,000 LessFixed overhead 48,000 Operating income 32,000 9. If 100 more units are sold, how much increase in profit is expected?
Q: Please calculate: debt ratio and times interest earned ratio
A: Debt Ratio is a solvency ratio which represent the proportion of Debt into the capital structure of…
Q: PAP-3A McNeil Construction Company is involved in a long-term construction contract to build an…
A: Contract costing is one of the type of costing method which is generally applicable in case of…
Q: Segment Contribution Margin Analysis The operating revenues of the three largest business segments…
A: Variable Cost :— It is the cost that changes with change in units. If % of variable cost is given…
Q: Motopads Manufacturing, Inc. manufactures a single product. Variable manufacturing overhead is…
A: Variance analysis is one of the important technique being used in management accounting. Under this…
Q: Rubber Corporation acquired all of the common stock of Plastic Company for $450,000 on January 1,…
A: As per IAS 36 i.e Impairment of Asset, An asset is to impaired if the carrying amount is more than…
Q: Complete the following: Invoice April 27 Date goods are received Terms 4/10 EOM Last day of discount…
A: Given, Term = 3/10 Invoice date = April 27 The discount date would not be calculated from the date…
Q: Explain and expand
A: Withholding tax is the tax which is the type of the tax which is required by the payer of the money…
Q: P2-2B Maria Juarez is a licensed dentist. During the first month of the operation of her busi- ness,…
A: General Journal :— It is an act of recording transaction in books of account when it is occurred.…
Q: Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the…
A: Cost of Goods Sold :— Cost of Goods Sold Means the total Cost Incurred in Production During the…
Q: On 8/1/2023 We issue 60 million of 8% 20 years bonds for 90 give the first Journal entries
A: This is issue of bonds at discount. The rate of interest on bonds is…
Q: What is variable costing? How does it differ from absorpotion costing? Which can better be used to…
A: Variable Costing is a costing method where variable expenses change in proportion with production.…
Q: Determine the Cost of Land Village Delivery Company purchased a lot to construct a new warehouse for…
A: Introduction: A balance sheet is a financial statement that details a company's assets and…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: Introduction: Net operating income is a measure of the profitability of a real estate venture. It is…
Q: nces Molly Mocha employs one college student every summer in her coffee shop. The student works the…
A: The accrued salaries are the salaries which are due for payment but not yet paid. The accrued…
Q: The Company Surteco sells 10.000 units of their wrapped moluldings for 1.5€/unit, per year. They…
A: 3/10, n30 is a trade credit given to buyers from the seller. 3/10, n30 means a buyer can get 3%…
Q: a. Based on the above data, determine the different costs listed below. If required, round your…
A: Production report refers to the report under which details of the product manufactured, at what…
Q: Uses of accounting in day to day life
A: Accounting is the study of where your money comes from and goes.You have thoughts about them…
Q: Date Department Item June Bal., 1,800 1 units, 60% completed 30 Direct materials. -Forging ACCOUNT…
A: The question is based on the concept of cost accounting.7
Q: recognise the Purchased emission allowances? As an intangible asset, inventory, debtor? Your team…
A: There is no uniform wear to address how the emission should be presented in a financial statement or…
Q: The following information is available from Pavit Company for its operations in March: • Factory…
A: Variance - The amount by which a set of numbers deviates from the mean or average is measured by…
Q: Which of the following is business income for NOL purposes? Interest earned on savings account.…
A: If your deductions for the year are more than your income for the year, you may have a net operating…
Q: 56. On January 1, 2018, Schmidt Industries purchased a new paint sprayer for $400,000. The salvage…
A: Depreciation is a form of non cash expense, which is charged as reduction of cost of asset over its…
Q: or Chairtable contributions: the company contributed $205,200. How do you calculate the $12,540?
A: Lets understand the basics. As per IRS, corporate can contribution maximum of 10% of corporate…
Q: Pamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1,…
A: Merger of Companies: - merger of Companies refers to the combination of two or more Companies into…
Q: Explain the items of gross income and how to tax them: whether at gross or at net, further…
A: The income are subjected to taxes depending on income earned and amount of tax rate for the…
Q: Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period…
A: According to the given question, we are required to compute the financial ratios of XYZ Limited.…
Q: Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period…
A: Adjusting Entries - Adjusting Entries are required to adjust the expenses and income paid early or…
Q: . $20,200 b. $7,700 c. $5,200 d. $7,300
A: A balance sheet is a tool for measuring the performance and financial position of every organization…
Q: Question 9 Which of the following is NOT normally associated with activity-based costing? A…
A: Cost accounting is one of the field of accounting, under which different type of costs are being…
Q: If your cost of goods sold for the year was $825,000, with beginning inventory of $240,000 and…
A: The inventory turnover ratio is a kind of efficiency ratio that indicates the number of times…
Q: Stairway Company sells a single product. The company's most recent income statement is given below:…
A: Variable costs change directly with the change in the number of units sold. So variable cost is…
Q: Tortoise, Inc., had a cost of goods sold of $44,921. At the end of the year, the accounts payable…
A: Creditors payment period is one of the important efficiency ratio being used in business. This shows…
Q: Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are…
A: By using the Accounting equation for each transaction the amount of total assets can be determined…
Q: Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis…
A: Disclaimer; Since you have asked many question as per bartleby gidelines we have to solve only 3…
Q: In 2021, Johnson Controls reported the following accounting items (in millions of dollars): Sales =…
A: Free cash flow the cash available for it's investors before paying any debts, dividend. It is…
Q: LAS Corporation shows the following accounting record for sales commissions 15,000 beginning…
A: Income Statement :— Income Statement provides the net income and Loss during the year. Income…
Q: ABC company produces and selling a single product. The following information relates to their…
A: Direct Material Budget :— A direct materials purchases budget calculates how much material is…
Q: Required information Use the following information for the Quick Studies below. (Algo) [The…
A: The common-size statements are prepared by the entities to analyze the percent variation in the…
Q: Chart of Accounts Cash Accounts Receivable Supplies Inventory Prepaid Insurance Prepaid Rent Office…
A: Journal entries: - Journal is a book of original entries in which transactions are first recorded in…
Q: Gareth Breese started a bammy project in April 2009, by investing 80,000 from his Busta…
A: Accounting equation is the fundamental concept being used in accounting. This concept says that…
Q: Complete the following (If more than one discount, assume date of last discount): (Use Table 7.1)…
A: Discount Period - Every company encourages Sales and payment from the customer issue some discount…
Q: What im
A: Expenses incurred day to day running of the business such as rent salaries wages power fuel etc.…
Q: Dividends per share Lightfoot Inc., a software development firm, has stock outstanding as follows:…
A: Dividend is a reward given by the company to its shareholders. It can be in the form of cash or…
Q: Is the correct answer B or D?
A: Sometimes due to certain reasons the balance of the cash book doesn't matches with the bank balance.…
Q: Rich Man Realty Richard Manuel decided to open a business named Rich Man Realty. In September 2015…
A: Financial Statement : Financial statements are written documents that describe the operations and…
Q: Which of the following accounts would not appear on the income statement of a lessee in connection…
A: A finance lease indicates the agreement between the lessor and lessee where the former provide the…
Q: Feb. 5. Issued 85,000 shares of common stock at par for cash. Feb. 5. Feb. 5. Issued 650 shares of…
A: Common stocks represents shares of ownership in a corporation. Common shareholders have right to…
Q: During the current year, Mr. X sold a building he bought in 1986 to XY Corporation for use in its…
A: The correct answer is option - A) $35,000 short term capital gain .
Q: Rhino, a C corporation, has $470,000 operating income and $290,000 operating expenses during the…
A: Long term capital gain will be offset against short term capital loss. Taxable income = operating…
Q: Mastery Problem: Cost-Volume-Profit Analysis Answer this question please Question Content Area…
A: Hi student Since there are multiple questions, we will answer only first question. Fixed costs are…
Step by step
Solved in 3 steps
- CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?Using this information, what is Your Company's Your Company's expected net income when 5,000 units are sold? Use the information in red to figure out total fixed costs. Expected sales in units Sales price per unit 5,000 $20 3,750 Expected - Breakeven Margin of safety in units 35% Contribution margin ratio O A. $35,000 O B. $25,000 O C. $18,750 O D. $26,250 O E. $ 8,750
- If marginal revenue is -0.006,r21 is expanded from 92 units to 145 units? Please round your answer to the nearest whole number. 1,213 and the cost per unit is 0.9, how much do profits increase by when outputFor a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…Profit A company charting its profits notices thatthe relationship between the number of units soldx and the profit P is linear. If 300 units sold resultsin $4650 profit and 375 units sold results in $9000profit, find the marginal profit, which is the rate ofchange of the profit.
- CVP Analysis using a chart: The cost-volume-profit chart for Byron Manufacturing is shown in the screenshot. Use the graph to complete the sentences given below. Byron Manufacturing reaches its break-even level of activity when it sells _____________ (200, 400, 500, 600) units and generates __________ ($5,000, $10,000, $12,000, $15,000) in revenue, because at this level of activity the firm's revenue ____________ (is greater than, is less than, equals) its total cost. In addition, you can determine from the chart that Byron Manufacturing's fixed costs are ________ (5,000, $6,000, $10,000, $12,000) and its price per unit is __________ ($.04, $10.00, $24.00, $30.00) and variable cost per unit is __________ ($.04, $10.00, $12.00, $24.00) A. If fixed costs increase, what will happen to the break-even point? ______ a. The break-even point will increase. b. The break-even point will decrease. B. If the price per unit decreases, what will happen to the break-even point? ________ a. The…Please answer the three questions below. Thanks! 1) Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units)- Variable Expenses Contribution Margin- Fixed ExpensesOperating Income $ 120,000(68,000)$ 52,000(42,000)$ 10,000 If 10 more units are sold, profits will increase by: 2) Using the information from Gilley, Inc. above, answer the following. The marketing manager believes that sales may increase next year by 20%. Using the operating leverage and the predicted increase in sales, what will TOTAL operating income be next year if the marketing manager is correct? 3) Using the information from Gilley, Inc. above, answer the following. The CEO of Gilley believes that sales will increase to 5,000 units next year and thinks that this may be a good time to lower variable cost and increase fixed costs through some minor automation in the plant. If they go ahead with this plan, variable costs per unit will…A company reports the following for this year. Units sold 1,800 units Sales price per unit $ 36 Variable costs per unit $ 17 Total fixed costs $ 27,360 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the income in dollars if the company increases sales by 5% next year. Income in dollars < Required B
- A merchandising company has provided the following contribution format incomestatement:Sales (10,000 units) $ 700,000Variable expenses 350,000Contribution margin 350,000Fixed expenses 85,000Net operating income $ 265,000(a) What is the total contribution margin? (b) What is the unit contribution margin? Show your calculations. **Pls help me in clear soultion with accurate answer pls thanksThe 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.Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
