Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company. To construct: a cost-volume-profit chart.

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Answer 1

Question

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

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Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600. Self-Employment tax = $ 6,440.70 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400. Self-Employment tax = $ 30,294.00

Answer 2

Question

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Answer 6

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

Answer 7

Chapter 19, Problem 19.17EX

A.

To determine

Cost-Volume-Profit Analysis: It is a method followed to analyze the relationship between the sales, costs, and the related profit or loss at various levels of units sold. In other words, it shows the effect of the changes in the cost and the sales volume on the operating income of the company.

To construct: a cost-volume-profit chart.

Answer 8

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

Answer 9

B.

To determine

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

Answer 10

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Answer 11

C.

To determine

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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 cost-volume-profit analysis, which analyzes the relationship between sales, costs, and related profit or loss at various levels of units sold.

To estimate: the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (A).

To explain: the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form.

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Chapter 19 Solutions