Mirror Company sold 17,000 units and had the following income statement for the most recent year: Sales...$357,000 Variable expenses...$255,000 Contribution margin...$102,000 Fixed expenses...$68,000 Net Income...$34,000 Given this data, the unit contribution margin was:
A project has fixed costs of $1,000 per year, depreciation charges of $500 a year, revenue of $6,000 a year, and variable costs equal to two-thirds of revenues. a) If sales increase by 5 percent, what will be the increase in pretax profits? b) What is the degree of operating leverage of this project? c) Confirm that the p
Factory overhead is an example of: a. mixed cost b. fixed cost c. variable cost d. irrelevant cost
A company produces only two products, A and B. The company uses activity-based costing. For the "Stamping" activity, the cost pool totals $15,000. The expected activity level for this activity is 400 for product A and 350 for product B. What is the activity rate under the activity-based costing system for this activity?
Information concerning Label Corporation's operations follow: Sales...$300,000 Variable expenses...$240,000 Fixed expenses...$40,000 Assuming that Label increased sales by 20%, what should net operating income be...choices are? a. $20,000 b. $24,000 c. $32,000 d. $80,000
A company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, what would total sales volume have to be in order to achieve net income of $10,000...choices are? a. $33,500 b. $57,000 c. $46,000 d. $49,000
Street Company's fixed expenses total $150,000, its unit sales price is $10 and its variable cost per unit is $5. What is the break-even point in units...choices are? (Points: 15) a. 30,000 b. 38,000 c. 27,500 d. 10,500
3. The relative proportion of variable, fixed, and mixed costs in a firm is known as the firm's...choices are: a. contribution margin b. cost structure c. product mix d. relevant range
I have $200,000. What is the present value received at the end of every 6 months for the next 8 years at a discount rate of 7%? fv=200,000(1+ (.07/2))1x2?
J&J Enterprises is forced on Dec31,2000.At that point it has one asset costing $2,487.The asset has a 3 year life with no salvage value and in expected to generate cash flows of $1,000 on Dec31, in the years 2001,2002 and 2003.Actual results are the same as planned .Depreciation in the firm's only expense .All income is to be di
Calculatie the Annual Percentage Rate (APR) interest rate for the following: Effective Annual interest Rate Componding period 10.00% 1 month 6.09% 6 months
Suppose the expected returns and standard deviations of stocks A and B are E(RA)=0.17 E(RB)=0.27 StdDevA=0.12 and StdDevB=0.21 respectively. Calculate the expected return and standard deviation of a portfolio that is composed of 35 percent A and 65 percent B when the correlation between the returns on A and B is 0.
The December 31, 2003 balance sheet of Pine Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2004, the following transactions occurred: sales on account $1,400,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written
A large consulting firm orders photocopying paper by the carton. The firm pays a $30 delivery charge on each order. The total cost of storing the paper, including forgone interest, storage space, and deterioration, comes to about $1.50 per carton per month. The firm uses about 1,000 cartons of paper per month. Order Size
Please HELP Tris brought a Japanese stock 1 yr. ago when it sold for 280 yen per share and the exchange rate was $.008 per yen. The stock now sells for 350 yen and the exchange rate is $.010 per yen. The stock paid no dividends over the year. a) What was Tris's rate of return on this stock? b) What would be the rate of
Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the
Identify a product or service in an organization that could use Activity Based Costing (ABC). Then identify at least two activities for ABC and the appropriate cost drivers for those activities. Estimate the application rates for each cost driver. If you cannot identify specific actual amounts, make a reasonable estimate an
(See attached file for full problem description) --- Expanded Accounting Equation For the following four cases, use the expanded accounting equation to compute the missing quantity. Assets Liabilities Capital Stock Retained Earnings Case A
Recording Dividends. On April 15, 2003, the board of directors for Auction.com declared a cash dividend of 20 cents per share payable to stockholders of record on May 20. The dividends will be paid on June 14. The company has 500,000 shares of stock outstanding. Prepare any necessary journal entries for each date.
Determining the amount of a dividend. Jacobs Company has 300,000 share of common stock authorized, 270,000 shares issued, and 50,000 shares of treasury stock. The company's board of directors declares a dividend of 50 cents per share. What is the total amount of the dividend that will be paid?
Recording the sale of common stock. To expand operations, Aragon Consulting issued 100,000 shares of previously unissued stock with a par value of $1. The selling price for the stock was $75 per share. Record the sale of this stock. Would your answer be different if the par value was $2 per share? If so, record the sale o
Clap Off Manufacturing uses 2300 switch assemblies per week and then reorders another 2300. If the relevant carrying cost per switch assembly is $10 and the fixed order cost is $800, is Clap Off's inventory policy optimal? Why or why not?
Jennifer Cantu, VP of Customer Services at Tri-State Auto Insurance, Inc., monitors the claims processing time of the claims division. Each week, her staff randomly selects a sample of 60 claims and tests the null hypothesis that the "mean processing time is 5 days or less." Jennifer chooses a 0.01 level of significance, the cri
If the intent for research is to try to prove the null hypothesis is true without giving any indication that something else may be proved (alternate hypothesis), then, what is the proper format for stating the null hypothesis? eg. The Chamber of Commerce estimates that "Richmond families, on the average, dine out at least 3
This is a Decision Case Problem from my accounting book that is a homework problem to be graded by the professor. Can you answer the Question A & B from the problem given in word document. A-1 Construction Company, headquarted in Terre Haute, Indiana, built a Rest Easy Motel 35 miles east of Terre Haute. The construction for
Any help would be great. Directions: Please note the template assist capturing the numerical data. Be sure to add the narrative explanation and supporting discussion for each component of the case. Prepare 250 - 300 word response to Case BYP 4-2. Managerial Analysis BYP4-2 Ideal Manufacturing Company of Sycamore, Illin
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales.......
Question: Why is accounting often referred to as the "language of business". What are generally accepted accounting principles (GAAP)? Who currently develops and issues GAAP? What is the purpose of GAAP?
Psyche Company wants to acquire Trim Company. Trim's ROI has been above average for its industry; net income has averaged $70,000 a year more than the industry average. These "excess" earnings are expected to continue at this amount for 5 years. Assuming a discount rate of 8%, how much goodwill will arise from Psyches' purchase
An expanded version of the accounting equation could be: A + Rev = L + OE - Exp A - L = Paid-in Capital - Rev - Exp A + Exp = L + Beginning Paid-in Capital + Rev A = L + Paid-in Capital - Rev + Exp