Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows: Break-even point in Sales ( units ) = Fixed Costs Contribution Margin per unit To compute: the anticipated break-even sales (units).

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Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

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Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

Answer 2

Question

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Answer 6

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

Answer 7

Chapter 19, Problem 19.3APR

1.

To determine

Break-even Point: It refers to a point in the level of operations at which a company experiences its revenues generated is equal to its costs incurred. Thus, when a company reaches at its break-even point, it reports neither an income nor a loss from operations. The formula to calculate the break-even point in sales units is as follows:

Break-even point in Sales(units) =Fixed CostsContribution Margin per unit

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

Answer 8

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

Answer 9

2.

To determine

the amount of sales (units) if the company desires a target profit of $240,000.

Answer 10

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

Answer 11

3.

To determine

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

Answer 12

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Answer 13

4.

To determine

the probable income (loss) from operations if sales total 16,000 units.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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 break-even point in sales units.

the amount of sales (units) if the company desires a target profit of $240,000.

To construct: a cost-volume-profit chart assuming the sales of 20,000 units within the relevant range.

the probable income (loss) from operations if sales total 16,000 units.

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Chapter 19 Solutions