Variable cost for Little Lucy Pie Company is 40% of sales and the break-even point in sales is $600,000. If target net operating income is $120,000, target sales would be A) $960,000. B) $900,000. C) $840,000. D) $800,000.
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When Finer Form Company sold 50,000 units of product for $10 per unit, the contribution margin ratio was 30% and net income was $120,000. What was the total fixed costs?
Given the computations for both gross profit on sales and contribution margin, what benefits come from gross profit on sales instead of contribution margin? Is net income always the same no matter what the accounting approach is? Let me give you a simple example. Look at the income statements below before you answer the ques
Widget corp. supplies widget kits retailers. Faces decision regarding purchase of kits from the manufacturer. monthly demand = 3600 units ordering costs = $25 holding cost per unit per month = $0.45 purchase price per unit = $0.85 per unit discount price = $0.82 per unit quantity needed to qualify for discount = 6000 uni
Twisto Pretzel Company disposes of under or over applied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $600,000 in a year when manufacturing overhead was overapplied by $18,000. If sales revenue totaled $1,400,000, determine gross margin.
McMann & Tate, an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor costs were projected to be $225,000. During the year, McMann & Tate incurred actual
1. Unitized Costs Suppose you are a manager in a manufacturing company. Your accountant has just presented you with a very detailed cost analysis for a decision whether to outsource or make a component of a product. You have to use this analysis in a meeting with other managers. Since the analysis is shown in totals and your
Zeke made the following donations to qualified charitable organizations during 2007: Basis Fair Market Value Used clothing (all acquired before 2006) of taxpayer and his family $ 2,350 $ 675 Stock in ABC, Inc., held as an investment for fif
Please see the attached file. 1. Make or Buy Suppose a BMW executive in Germany is trying to decide whether the company should continue to manufacture an engine component or purchase it from Frankfurt Corporation for 50 euros each. Demand for the coming year is expected to be the same as for the current year, 200,000 units.
See the attached file The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. If the company has budgeted to sell 24,000 units of Product SW in September, then the total budgeted fixed se
Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $450,000 for November, $380,000 for December, and $280,000 for January. - Collections are expected to be 87% in the month of sale, 8% in the
Question 13: Betz Company's sales budget shows the following projections for next year: Sales in units First Quarter 60,000 Second Quarter 82,000 Third Quarter 44,000 Fourth Quarter 50,000 Inventory at the beginning of the year was 20,400 units. The finished goods inventory at the end of each quarter is t
Question 12: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $182,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for January, the company shou
Question 10: Harden, Inc., has budgeted sales in units for the next five months as follows: June 7,000 units July 5,200 units August 6,300 units September 6,700 units October 4,700 units Past experience has shown that the ending inventory for each month should be equal to 14% of the next mont
On October 1, The Gala Manufacturing Company has 290 units of Product XYZ on hand. The company plans to sell 1,150 units of Product XYZ during October, and plans to have 480 units on hand October 31. How many units of Product XYZ must be produced during October?
Question 8: All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 43% in the month following sale, and the rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budgeted sales data for the c
Question 5: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $28,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $185,000. The desired ending cash balance is $44,000. The excess (deficiency) of cash available over disbursements for January
Question 1: The Bandeiras Company, a merchandising firm, has budgeted its activity for December according to the following information: - Sales at $560,000, all for cash. - Merchandise inventory on November 30 was $304,000. - Budgeted depreciation for December is $34,000. - The cash balance at December 1 was $24,000.
A U.S. company regularly sells goods to companies in Japan and denominates the transactions in U.S. dollars. From the U.S. company's perspective, the yen is the: Functional Reporting Local Currency Currency Currency A) Yes No No B)
Hello, I am completely lost on this problem; I am having trouble wrapping my head around it. Thank you. As the manager of the accounts receivable department for Vicki Maher Leather Goods, Ltd., you recently noticed that Percy Shelley, your accounts receivable clerk who is paid $1,200 per month, has been wearing unusually tast
Martin Shoes, Inc. (Planning a Database Using REA and E-R Methodology) Martin Shoes, Inc., manufactures and distributes orthopedic footwear. To sell its products, the marketing department requires sales personnel to call on the shoe retailers within their assigned geographic territories. Each salesperson has a laptop computer
What are the steps in the systems development life cycle? Which step is most important? Why? What are the ramifications of skipping one of the steps?
I need help grasping these topics. Can you assist? In Lawrence County, the real property tax year is the calendar year. The real property tax becomes a personal liability of the owner of real property on January 1 in the current real property tax year, 2007 (which is not a leap year). The tax is payable on June 1, 2007. On Ma
Scenario: Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of June. June 1: Purchased $8,100 of merchandise on credit from Vick, Inc., terms n/30. 8: Sold merchandise costing $900 on credi
A.) Nell, single and age 38, had the following income and expense items in 2008: Nonbusiness bad debt $6,000 Business bad debt $2,000 Nonbusiness long-term capital gain $4,000 Nonbusiness short-term capital loss $3,000 Salary $40,
A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15 percent and the company reinvests 40 percent of earnings in the firm, what must be the discount rate?
1.Why must the financial manager when evaluating a decision alternative or action consider risk as well as return? 2.What is goal of the financial manager? Discuss how one measure achievement of this goal.
Articulation: Relationships between a Balance Sheet and an Income Statement The total assets and liabilities of Roloflex Company at January 1 and December 31, 2006, are presented below. January 1 December 31 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $76,000 $112,000 Liabiliti
The accounting records of the Microfine Company revealed the following costs: Factory utilities $42,000. Wages of assembly-line workers 194,000. Customer entertainment 52,000.
Bloom Company manufactures a single product that sells for $180 per unit and whose total variable costs are $139 per unit. The company targets an annual after tax income of $820,000. The company is subject to a 30% income tax rate. Assume that fixed costs remain at $637,500. Compute the unit sales to earn the target after ta