MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
11th Edition
ISBN: 9780133877571
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 21, Problem 16RQ
Of the three approaches to calculate sales required to achieve the breakeven point, which one(s) calculate the required sales in units and which one(s) calculate the required sales in dollars?
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Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?
a. costs and expenses ratio
b. contribution margin ratio
c. margin of safety ratio
d. profit ratio
Which one of the following is defined, at any given sales volume, as the ratio of the total contribution margin to operating profit at that sales volume?
What are the three approaches to calculating the sales required to achieve the target profit? Give the formula for each one.
Chapter 21 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting
Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QCCh. 21 - Prob. 3QCCh. 21 - Prob. 4QCCh. 21 - Prob. 5QCCh. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QCCh. 21 - Prob. 9QCCh. 21 - Prob. 10QC
Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Prob. 12AQCCh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - What is a mixed cost? Give an example.Ch. 21 - What is the purpose of using the high-low method?Ch. 21 - Describe the three steps of the high-low method.Ch. 21 - What is the relevant range?Ch. 21 - A chain of convenience stores has one manager per...Ch. 21 - A chain of convenience stores has one manager per...Ch. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - What is cost-volume-profit analysis?Ch. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - Of the three approaches to calculate sales...Ch. 21 - Prob. 17RQCh. 21 - Prob. 18RQCh. 21 - On the CVP graph, where is the breakeven point...Ch. 21 - What is sensitivity analysis? How do managers use...Ch. 21 - Prob. 21RQCh. 21 - Prob. 22RQCh. 21 - What is a company's cost structure? How can cost...Ch. 21 - What is operating leverage? What does it mean if a...Ch. 21 - Prob. 25RQCh. 21 - What is absorption costing?Ch. 21 - What is variable costing?Ch. 21 - How are absorption costing and variable costing...Ch. 21 - When units produced equal units sold, how does...Ch. 21 - Prob. 30ARQCh. 21 - Prob. 31ARQCh. 21 - Prob. 32ARQCh. 21 - Prob. 33ARQCh. 21 - Identifying variable, fixed, and mixed costs...Ch. 21 - Prob. S21.2SECh. 21 - Using the high-low method Mel owns a machine shop....Ch. 21 - Prob. S21.4SECh. 21 - Prob. S21.5SECh. 21 - Prob. S21.6SECh. 21 - Prob. S21.7SECh. 21 - Prob. S21.8SECh. 21 - Prob. S21.9SECh. 21 - Prob. S21.10SECh. 21 - Prob. S21.11SECh. 21 - Prob. S21.12SECh. 21 - Computing margin of safety Refer to the original...Ch. 21 - Prob. S21.14SECh. 21 - Prob. S21.15SECh. 21 - Prob. S21.16SECh. 21 - S21A-18 Classifying costs
Learning Objective 6...Ch. 21 - Prob. S21A.18SECh. 21 - Use the following information for Short Exercises...Ch. 21 - Prob. S21A.20SECh. 21 - Use the following information for Short Exercises...Ch. 21 - Computing absorption cost per unit Abrey, Inc. has...Ch. 21 - Prob. S21A.23SECh. 21 - Prob. S21A.24SECh. 21 - Prob. E21.25ECh. 21 - Prob. E21.26ECh. 21 - Prob. E21.27ECh. 21 -
E21-28 Determining total variable cost
For each...Ch. 21 - Prob. E21.29ECh. 21 - Prob. E21.30ECh. 21 - Prob. E21.31ECh. 21 - Prob. E21.32ECh. 21 - Prob. E21.33ECh. 21 - Prob. E21.34ECh. 21 - Prob. E21.35ECh. 21 - Prob. E21.36ECh. 21 - Prob. E21.37ECh. 21 - E21-38 Computing margin of safety
Ricky’s Repair...Ch. 21 - Prob. E21.39ECh. 21 - Prob. E21.40ECh. 21 - Prob. E21.41ECh. 21 - Prob. E21.42ECh. 21 - Prob. E21.43ECh. 21 - Prob. E21.44ECh. 21 - Prob. E21.45ECh. 21 - Prob. E21A.46ECh. 21 - Prob. E21A.47ECh. 21 - Prob. E21A.48ECh. 21 - Calculating cost-volume-profit elements The...Ch. 21 - Prob. P21.50APGACh. 21 - Prob. P21.51APGACh. 21 - Prob. P21.52APGACh. 21 - Prob. P21.53APGACh. 21 - Prob. P21.54APGACh. 21 - Prob. P21.55APGACh. 21 - Prob. P21.56BPGBCh. 21 - Prob. P21.57BPGBCh. 21 - Prob. P21.58BPGBCh. 21 - Computing breakeven sales and sales needed to earn...Ch. 21 - Prob. P21.60BPGBCh. 21 - Prob. P21.61BPGBCh. 21 - Prob. P21.62BPGBCh. 21 - Prob. P21.63CPCh. 21 - The Savannah Shirt Company makes two types of...Ch. 21 - The Savannah Shirt Company makes two types of...Ch. 21 - Prob. 3CPCh. 21 - Prob. 4CPCh. 21 - The Savannah Shirt Company makes two types of...Ch. 21 - Prob. 6CPCh. 21 - Prob. 21.1DCCh. 21 - Prob. 21.1EI
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- Which of the following equations is correct for determining the required sales in units to generate a targeted amount of pre-tax income (πB) under the equation method (where Q = sales in units, F = total fixed costs, πB = pre-tax profit, v = variable cost per unit, and p = selling price per unit)?arrow_forwardWhich of the following formulas is used to calculate the contribution margin ratio?(Sales − Fixed costs) ÷ Sales.(Sales − Total costs) ÷ Sales.(Sales − Cost of goods sold) ÷ Sales.(Sales − Variable costs) ÷ Sales.arrow_forwardAssume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit? Select one: a. Total cost per unit times markup percentage per unit. b. Total cost per unit divided by markup percentage per unit. c. Total cost times markup percentage. d. Markup percentage divided by total cost. e. Markup percentage per unit divided by total cost per unit.arrow_forward
- Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.arrow_forwardJoint Products A101, A204, and B216. Sales and production information for each of the three adhesives are shown in the following table. Most of Johnston's customers ask for a special blend of the three products, which improves heat-resistance. The additional separable processing requires additional time and materials, and the price is increased accordingly, as shown in the table. Assume that Johnston pro- duces only for specific customer orders, so there is no beginning or ending inventory. Assume also that all of Johnston's customers requested the heat-resistant version of the products so that all produc- tion required additional separable processing. Total joint cost for the three products is $3,500,000. Johnston Adhesives Company makes three widely used industrial adhesives: A101 A204 B216 175,000 %$4 115,000 $. Gallons sold 135,000 14 $4 10 12 Final sales price per gallon Price at split-off Separable processing cost 10 10 $550,000 $125,000 $625,000arrow_forwardConsider the following two statements concerning cost-volume-profit analysis. (1) The contribution per unit is the difference between the sales price per unit and the fixed costs per unit. (2) The marginal cost per unit will usually equal the variable cost per unit. Which one of the following combinations ( true/false) relating to the above statements is correct?arrow_forward
- What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit? A. Margin of safety ratioB. Contribution margin ratioC. Costs and expenses ratioD. Profit ratioarrow_forwardIs the cost of sales under weighted average always greater than the cost of sales in FIFO?arrow_forwardThe difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equationarrow_forward
- What does the term sales mix mean? How is a weighted-average unit contribution margin computed?arrow_forwardIn Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in other words, number of units produced is as sumed to be equal to number of units sold. Select one: 1.True 2.Falsearrow_forwardThe of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O profit, revenue yields the sales mix.arrow_forward
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