[The following Information applies to the questions displayed below.]Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variableand fixed costs.2234 inMonth1Units Sold315,000Total Cost$ 152,500160,00096,250260,000200,600200,00095,0005285,000196,5006185,000107,0007365,000314,8008265,000146,750977,00070,00010145,000125,6251189,00089,0001295,00086,6502. Predict future total costs when sales volume is (a) 370,000 units and (b) 410,000 units.370,000 units 410,000 unitsTotal cost

Variable costs are the costs that vary with the change in the output levels. Per unit will remain…

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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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Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts
Ashland Company manufactures and sells a single product. The company's sales and expenses for a recent month are as follows: (a) What is the monthly break-even point in units sold and in sales dollars?(b) How many units would have to be sold each month to earn a minimum target net income of $50,000?
APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Starr Productions Further analysis of Starr Productions's fixed costs revealed that the company actually faces annual fixed overhead costs of $4,200 and annual fixed selling and administrative costs of $1,800. Variable cost estimates are correct: direct materials cost, $12.00 per unit; direct labor costs, $15.00 per unit; and variable overhead costs, $3.00 per unit. At this time, the selling price of $40 will not change. Complete the following formulas for the revised fixed costs. Enter the ratio as a percentage. Contribution Margin per Unit Contribution Margin Ratio % Now complete the formulas for (1) the break-even point in sales dollars and (2) the units sold at the break-even point. To calculate this, divide the break-even point in sales dollars by the unit selling price. Break-Even Point in Sales Dollars % Units Sold at Break-Even Point units Assume that the number of units that Starr sold exceeded the…
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,700 units) $ 246, 400 $ 32.00 Variable expenses 138, 600 18.00 Contribution margin 107,800 $ 14.00 Fixed expenses 54, 500 Net operating income $ 53,300 Required: (Consider each case independently): What would be the revised net operating income per month if the sales volume increases by 60 units? What would be the revised net operating income per month if the sales volume decreases by 60 units? What would be the revised net operating income per month if the sales volume is 6, 700 units?
Maestro Co. employs a salesperson whose salary is $2,000 per month. Once the monthly sales exceed $40,000, the salesperson receives the commission of 5% of the sales made. Which of the following Cost Behavior Patterns describe the salesperson’s salary the most? Question 7Select one: a. Variable costs b. Fixed costs c. Semivariable costs d. Step costs
Denger
or the current year, Power Cords Corp. expected to sell 42,300 industrial power cords. Fixed costs were expected to total $1,651,500; unit sales price was expected to be $3,900; and unit variable costs were budgeted at $2,400.Power Cords Corp.'s margin of safety (MOS) in units is: Multiple Choice 49,099. 39,299. 41,199. 36,399. 32,799.
A company reported the following data: • Sales price per unit: $10 • Fixed cost per month: $20,000 Variable cost per unit: $2 How many units must this company sell each month in order to reach a target profit of $50,000?
Error: Analysis and CorrectionOn July 1 of Year 8, a full year’s insurance premium of $2,400, covering the period July 1 of Year 8 to June 30 of Year 9, was paid and debited to insurance expense. Assume the following:● The company has a calendar ﬁscal year.● January 1 of Year 8, retained earnings balance is $20,000.● Year 8 reported net income (assuming the error is not discovered) is $22,800.● Year 9 net income (assuming the error is not discovered) is $30,000.● Year 10 net income is $40,000. Ignore taxes.Requireda. List the eﬀects of the error on aﬀected accounts and on net income in Year 8 and Year 9. Assume no adjusting entry is made on December 31 of Year 8. b. Prepare the entry to record the error if discovered in Year 8. c. Prepare the entry to record the error if discovered in Year 9. Prepare the Year 8 and Year 9 retained earnings sections of the statement of stockholders’ equity. ● Note: If a journal entry isn't required on any of the dates shown, select "N/A—debit" and…
Dhapa
For the past year, Cline Company had fixed costs of $6,552,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs except that a new wage contract will increase variable costs by $6 per unit. a. Determine the break-even sales (in units) for the past year.fill in the blank 1 units b. Determine the break-even sales (in units) for the coming year.fill in the blank 2 units
Braile Gear Works sells a single gear for a price of $55.00 per unit. The variable costs of the gear are $23.00 per gear and annual fixed costs are $448,000. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations.

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