Target Profit: It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows: Sales ( units ) = Fixed Costs+Target Profit Unit Contribution Margin To compute: the anticipated break-even point sales (units).

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Answer 1

Question

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

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PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…

Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.) Transactions 1. Raw materials were purchased on account. 2. Issued a check to Dixon Machine Shop for repair work on factory equipment. 3. Direct materials were requisitioned for Job 280. 4. Factory labor was paid as incurred. 5. Recognized direct labor and indirect labor used. 6. The production department requisitioned 7. indirect materials for use in the factory. Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour. 8. Goods that were completed were transferred to finished goods inventory. 9. Goods costing $80,000 were sold for $105,000 on account. 10. Paid for raw materials purchased previously on account. Account(s) Debited

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Answer 2

Question

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

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Answer 3

Question

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

Answer 6

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

Answer 7

Chapter 19, Problem 19.11EX

a)

To determine

Target Profit:

It refers to the desired amount of profit that a company expects to achieve by the end of an accounting period after it reaches its break-even point. Thus, the company needs to compute the required sales to earn the target profit. The formula to calculate the required sales to earn the target profit is as follows:

Sales(units) =Fixed Costs+Target ProfitUnit Contribution Margin

To compute: the anticipated break-even point sales (units).

Answer 8

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

Answer 9

b)

To determine

To compute: the sales (units) required to realize income from operations of $150,000.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 19 - Describe how total variable costs and unit...Ch. 19 - Which of the following costs would be classified...Ch. 19 - Describe how total fixed costs and unit fixed...Ch. 19 - In applying the high-low method of cost estimation...Ch. 19 - If fixed costs increase, what would be the impact...Ch. 19 - Prob. 6DQ Ch. 19 - If the unit cost of direct materials is decreased,...Ch. 19 - Both Austin Company and Hill Company had the same...Ch. 19 - Prob. 9DQ Ch. 19 - Prob. 10DQ

Solution Summary: The author explains the formula to calculate the required sales to earn the target profit.

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To compute: the sales (units) required to realize income from operations of $150,000.

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