Please provide correct option of this general accounting question Zenith Industries reports the following data:AccountAmount ($)Depreciation60COGS800Sales1,200SG&A Expenses150Its peer group has a gross profit margin of 35%.How does Zenith compare to its peers?a. Zenith's 25% gross profit margin is inferior to its peer group.b. Zenith's 33% gross profit margin is inferior to its peer group.c. Zenith's 40% gross profit margin is superior to its peer group.d. Zenith's 35% gross profit margin is the same as its peergroup no better or worse.

Step 1: Define Gross Profit MarginGross Profit Margin is the percentage of sales revenue that…

Answered: Zenith Industries reports the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E

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Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. A. 1.25% B. (1.25%) Percentage increase (decrease) in sales price. C. (2.125%) D. 2.125%
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. Increase (decrease) in gross margin due to change in sales price. A. P1,000 C. P17,200 B. P1,200 D. (P4,800)
Vincenzo Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Required:Calculate, explain, and determine which of the segments are reportable based on the:a. Revenue testb. Operating profit (loss) testc. Identifiable assets testd. 75 percent combined revenue test
Mak Cosmetics maintains an operating profit margin of 10% and asset turnover ratio of 2.5. If Mak Cosmetics' debt-equity ratio is 0.3333, its net income is $1,000, interest payment is $600, taxable income is $1,538.46, taxes is $538.46, and depreciation is $800, what is its ROE? (Hint: that monster equation?) Multiple Choice 5.99% 23.98% 27.55% 15.22%
You are presented with the following three scenarios for Sing Company: #1 Revenue (15 units x $5) Less: COGS (15 units * $3) Gross Margin Less: SG&A Exp. Operating Income (Loss) $75 45 30 50 ($20) #2 Revenue (10 units x $15) Less: COGS (10 units x $3) Gross Margin Less: SG&A Exp. Operating Income $150 30 120 50 $70 #3 Revenue (12 units < $10) Less: COGS (12 units × $3) Gross Margin Less: SG&A Exp. Operating Income $120 36 84 50 $34 With regards to Sing's price, cost, and product, what can be concluded from Scenario #2? O Sing Company has a profit because it is not charging a high enough price to cover the costs incurred. O Sing Company should have incurred a loss because its sales in units are lower in this scenario than any other option. O Sing Company can make a profit by increasing its unit selling price, but the unit sales are normally going to decrease, and may result in the company being driven out of the market due to competitors having lower unit selling prices. O Sing Company…
What is its net income/loss ?
The ratio equation Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving. The original post should include at least three (3) sentences but no more than seven (7) sentences.
Answer? ? General Accounting question
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A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $110,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 115,000 (38,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 255,000 178,500 76,500 115,000 $ (38,500)
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
U.S. Steal has the following income statement data: Total Operating Units Sold 80,000 Variable Fixed Total Total Income (Loss) $ 170,000 230,000 Costs Costs Costs Revenue $ 160,000 $ 70,000 $ 230,000 $ 400, 000 500,000 100,000 200,000 70,000 270,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Percent change in operating income DOL Percent change in units sold Degree of operating leverage 1.41 b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) O(P - vc) Q(P - VC) - FC DOL Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by…

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