W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns is presented in the table below. Fixed costs total $80,000.| **Type of Return** | **Sales Mix** | **Fee Charged** | **Variable Cost per Return** ||--------------------|---------------|-----------------|-----------------------------|| Easy | 50% | $180 | $100 || Moderate | 30% | $330 | $190 || Business | 20% | $630 | $240 |The break-even point in units using the weighted-average contribution margin is:### Multiple Choice- ☐ 80 units.- ☐ 120 units.- ☐ 194 units.- ☑ 500 units.

The term "break-even point" in accounting refers to the stage or level of activity when the volume…

Answered: W&W 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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ces Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Sales CM ratio Fixed expenses total $183,750 per month. Flight Dynamic $ 150,000 Required 1 Product Required 2 Required 3 80% Required: 1. Prepare a contribution format income statement for the company as a whole. 2. What is the company's break-even point in dollar sales based on the current sales mix? 3. If sales increase by $100,000 a month, by how much would you expect the monthly net operating income to increase? Break-even point in dollar sales Sure Shot $ 250,000 36% Complete this question by entering your answers in the tabs below. Total $ 400.000 > What is the company's break-even point in dollar sales based on the current sales mix? Note: Do not round intermediate calculations.
Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium this season. Fixed costs are $6,000 and CMU = $2 per cap. The income tax rate is 30%. 2. How many units do you need to sell to reach the pre-tax profit?
Dog
(a) Calculate the following: i. Break-even point in bottles and value (5 marks) ii. Total net profit for the year (6 marks) iii. Margin of safety in bottles and value (4 marks) Please provide a calculation for each of them.
Use cvp model to compute the rooms sales necessary to achieve a net income of $156,000 for a single product motel with total fixed cost of $180,000, an average room rat of $50. and a variable cost per room of $20. The motels income tax rate is 35%. prove accuracy
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: product type high quality medium quality price invoice cost 840 620 sales commission sales price 1850 920 100 40 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $270,400. (In the following requirements, ignore income taxes.) a. What is the shop's break-even sales volume in dollars? Assume a constant sales mix. b. How many bicycles of each type must be sold to earn a target net income of $126,750? Assume a constant sales mix.
Assume the following financial data pertains to a certain single-product lodging business:Room Sales - $400,000Total Variable - $260,000Costs Contribution Margin - $140,000Total Fixed Costs - $ 76,000IBIT - $ 64,000Based on the financial data provided, the contribution margin percentage is __________ percent.
Vishnu
D.Insert a column called percentage contribution in an appropriate area of the spreadsheet, to display the total contribution to overall sales by each salesperson. The answer is to be formatted as percentage. e.Company policy dictates that all sales volumes exceeding nine million ($8,000, 000.00) but not exceeding ten million ($10, 000, 000.00) should receive an incentive of US $700.00, otherwise they should receive US $200.00. In an appropriate area of the spreadsheet create a heading called Special Incentive 1 and make the necessary calculations using the necessary function f.Company policy also dictates that all sales volumes exceeding ten million ($10,000, 000.00) but less than or equal to twelve million ($12, 000, 000.00) should receive a trip to any Air Jamaica destination, otherwise they should not receive a trip. In an appropriate area of the spreadsheet create a heading called Special Incentive 2 and make the necessary calculations using the necessary function
PA2. LO 12.1Stork Enterprises delivers care packages for special occasions. They charge $45 for a small package, and $80 for a large package. The sales tax rate is 6%. During the month of May, Stork delivers 38 small packages and 22 large packages. What is the total tax charged to the customer per small package? What is the overall charge per small package? What is the total tax charged to the customer per large package? What is the overall charge per large package? How much sales tax liability does Stork Enterprises have for the month of May? What account is used to recognize this tax situation for the month of May? When Stork remits payment to the sales tax governing body, what happens to the sales tax liability?
Find the amount of sales tax on a car that costs 12,800 where the sales tax rate is 6.5%
PA2. Stork Enterprises delivers care packages for special occasions. They charge $45 for a smallpackage and $80 for a large package. The sales tax rate is 6%. During the month of May, Stork delivers 38small packages and 22 large packages.A. What is the total tax charged to the customer per small package? What is the overall charge per smallpackage?B. What is the total tax charged to the customer per large package? What is the overall charge per largepackage?C. How much sales tax liability does Stork Enterprises have for the month of May?D. What accounts are used to recognize this tax situation for the month of May?E. When Stork remits payment to the sales tax governing body, what happens to the sales tax liability? PA5. Review the following transactions and prepare any necessary journal entries.A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier,on credit. The terms of the purchase are 4/10, n/50 from the invoice date of July 16.B. On…

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