Case 4 ( 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. Calculate the contribution margin amount and the variable cost if net income is BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to Case 5 40% of sales. What is the pretax income if sales are $650,000? Answer:
Q: New Hope Income Statement Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold: Beginning…
A: Inventory turnover ratio : Inventory turnover ratio indicates the demand for the product &…
Q: Beau is the owner of Beau's Bakery. He is concerned that his business is becoming too highly geared.…
A: The debt-equity ratio is a financial ratio that indicates the firm's ability to meet its outstanding…
Q: 2. C-type Company receives $ 400,000 when it issues 6% mortgage note payable for 4 years to finance…
A: Accounts payables Accounts payable (AP), sometimes known as "payables," is the term used to…
Q: Entity’s current reporting date is 31 December 2014 and the owner will probably approve the 2014…
A: Subsidiary Ledger - A collection of comparable accounts with aggregated balances equal to the…
Q: Rowen Corporation reported the following results for its first three years of operation: 2010 income…
A: Deferred tax liability means the amount of tax that has been incurred but not yet paid, as it is a…
Q: Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1,…
A: Introduction: Journal Entry Testing is one of the most important audit tests performed over the…
Q: B20. Your client, James, is the 100% owner Best Corporation, Inc., a C Corporation. James wants to…
A: The correct answer is option - c. No, because James and Best are considered related parties for…
Q: Critically evaluate the Regret aversion influencing investment decision-making
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: (a) Prepare general journal entries to record each of the four transactions. If no entry is…
A: In cash basis of accounting : on 1st Jan 2002 - no entry- may 1st -…
Q: 1. Perform vertical and/or horizontal analysis of the statements and identify two things that appear…
A: Fraud seems to be purposefully dishonest behaviour in order to obtain an advantage or earn a profit.…
Q: Prepare original and adjusting journal entres for payments Ouellette & Associates began operations…
A: ADJUSTED JOURNAL ENTRIES Adjusting entries are changes to journal entries you've already…
Q: The following accounts of ABC Manufacturing Co. appeared in its balance sheets on December 31, 2013…
A: Raw materials are materials or substances used in the primary production or making of items. Raw…
Q: art One: 2018: 31.57% 2019: 24.88% 2020: 25.53% 2021:15.09% 2022:16.03% Based on your…
A: Return on Equity - It refers to the percentage of profit earned on shareholder equity and it can be…
Q: Acrimony Ltd. has the following balances in its general ledger on 31 December 20X8 (in thousands of…
A: Income which doesn't included in the income statement is shown under "accumulated other…
Q: Corporate bonds that receive a ____ rating from credit rating agencies
A: ANSWERS. Option A : Higher, Lower Corporate bonds that receive a Higher rating from credit…
Q: Question: 1. what is the correct source documents for credit purchase by business X. option: a)…
A: Purchase of goods and services in the business can be made for cash or can be on credit basis. Under…
Q: Determine Mr. Jonsson's employment income for the 2021 taxation year. Ignore all GST/HST and PST…
A: solution:- Step-by-step explanation:- Salary…
Q: Assess the accounting function within the organization in the context of regulatory and ethical…
A: Accounting Function - It refers to various operational processes in an organisation which include -…
Q: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following…
A: Workings :- 1) Calculation of Ending inventory units of finished goods :- Budgeted beginning…
Q: What is a Statement of Comprehensive Income?
A: Since you have posted multiple questions, we will do the first one for you. Please post the other…
Q: 4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What…
A: Merchandise Vs Service Entity - Merchandise Entity earned revenue by selling goods to the customer.…
Q: Joe Taxpayer has the following items of income- Inheritance of apple stock, fair market value at…
A: Taxable Income: - Taxable Income of an individual is the total income earned by that person during…
Q: B11. The amount in Box 1 of Form W-2 for taxable wages will always equal the amount in Box 3 of…
A: Ans. False
Q: Break-even analysis for a service company
A: (a) 54.21 million accounts Explanation : All amounts are in millions - Cost of Revenue =…
Q: The following information pertains to the Satyam Company for the year ending December 31, 2019…
A: An income statement assists employers in determining whether they are able to achieve a profit by…
Q: please answer with 30 minutes
A: Gross Profit = Net Sales - Cost of Goods Sold. Net Sales = Sales - Sales Discount - Sales Returns…
Q: e of $1,150,000, variable cost of goods sold of $850,000, variable selling exper analysis as of…
A: Revenue - The total amount of revenue a business really makes from the sale of goods or services…
Q: fill in blanks
A: It has been given in the question that the net sales has been taken as the 100% and respective other…
Q: Mr Cruz, procured a tract of timber for P65,000. The worth of the land was established tobe P17,000…
A: The depletion is a method of accrual accounting that is used to calculate the cost of extracting…
Q: Suppose Lily’s current salary is $72, 000 per year, and she is planning to retire 25 years from now.…
A: The time value of money is the concept that is widely used by companies and individuals to determine…
Q: Vedah company's trial balance reflected the following account balances on December 31, 20B: Accounts…
A: Solution: Determine the amount as current assets: Current assets = Account receivable + Cash +…
Q: Crane, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss…
A: Net income is the amount of income earned by an entity after deducting the expense incurred from the…
Q: Han Company has three products in its ending inventory. Specific per unit data at the end of the…
A: The question is based on the concept of Cost Accounting. The finished goods inventory is valued at…
Q: A bond you are evaluating has a 10 percent coupon rate (compounded semiannually), a $1,000 face…
A: Bonds are the securities issued by the entity in order to raise finance. These are an obligation on…
Q: Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM,…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: During your first audit of medium-size manufacturing company, the owner, John Bell, explains that in…
A: Audit Risk Audit risk is the likelihood that an auditor may provide a financial statement with major…
Q: O decrease by $1,000 O decrease by $4,000 O increase by $1,000 O increase by $3,500
A: Introduction:- Calculation of relevant cost for making as follows:- =Number of units x Variable…
Q: a. What are the cash flows for the project in years 0 through 57 b. Plot the NPV profile for this…
A: Given in the question: Initial Investment $899,000 First Year Sales $806,000 Second…
Q: ts) Which principle has FASB used to determine the accounting method for recordin elopment costs? 4…
A: There are specific methods of accounting for different activities and there is specific method of…
Q: On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co.…
A: A journal entry is used to record a commercial transaction in the accounting records of a…
Q: C3 Nelson Co has a taxation year end of December 31. On January 1, 2022 the UCC of Class 8 was…
A: Assets An asset is a resource having economic worth that a person, organization, or nation…
Q: Red Inc. Trial Balance December 31, 2022 Accounts payable Accounts receivable Other Accrued…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Sally Goodenough owes ABC Company $100. ABC has decided that Sally is not going to pay them. ABC…
A: The company makes sales on cash as well as sales on account to increase sales by attracting more…
Q: Why is property and equipment not reported on the balance sheet at fair value?
A: A financial statement called a balance sheet lists an organization's assets, liabilities, and…
Q: Written Work. Problem Solving. Show your solutions. At September 28, the balance sheet accounts for…
A: SFP refers to the Statement of financial position which is typically called the balance sheet.…
Q: You own a company. This company’s projected revenue is $30,000 for year 1, $31,000 for year 2, and…
A: PRESENT VALUE Present Value is the current value of a future amount of money or a series of Cash…
Q: Please explain calculation of transaction b) Where the value 612 is coming
A: Semiannual means the 2 times in one year or every 6 months. Semiannual interest payment means the…
Q: Complete the following table: Employee Ryan Total sales $ 291,000 Commission rate 6 % Draw $ 7,800…
A: The question is based on the concept of Financial Accounting.
Q: Step by step manual solution please.tjanks Ps. 4 decimal places
A: Interest are of types:- First is simple interest. in this interest only on principal interest is…
PLease answer last two subparts only
Case 4
Case 5
no handwritten answers thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Suppose that a company expects the fo llowing financial resuJts from a project during its first year ope ration:• Sales revenue: $250.000• Variable costs: $80.000• Fixed costs: $50.000• Total unit produced and so ld: 1,000 units(a) Compute the contribution ma rgin pe rcentage.(b) Compute the brcakcven point in units sold.Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 Year Variable Costs 2019 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, b) B.E.P in units and Sales c) Sales required to earn a profit of OMR 40000.Each year is separate, you should calculate the required values for both years. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: Annual sales 5,000 units Unit selling price $ 60 Unit variable costs: Production $ 33 Selling $ 6 Incremental fixed costs per year: Production $ 34,500 Selling $ 45,000 If the company adds the new product, it expects the contribution margin of other product lines to drop by $15,300 per year. What is the financial advantage (disadvantage) of adding the new product? Multiple Choice $40,800 $10,200 $89,700 $25,500
- Question 3:salalah Company's financial information is given in the table below. Year 2020 Sales (OMR) Fixed Costs 445000 Variable Costs: 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.O e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16Question 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
- Question 3: Mirbat Company's financial information is given in the table below. Year 2020 2021 Sales (OMR) Fixed Costs 445000 500000 105000 150000 Variable Costs 245000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) Margin of safety at a profit of OMR 50000 b) Profit when sales are OMR. 300000.Use AstroTurf Company's income statement below to answer the following questions.Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35% What level of sales would generate a net income of $4.2m for the following year, knowing that operating costs (excl. depreciation and amortization) will increase by 7.5%, and given a 35% tax rate. Provide a step-by-step explanation for how you arrived at your above solution as though you were teaching a student to solve this type of problem.*Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000
- Calculate selling price of new product; what-if questions; breakeven D&RCorp. has annual revenues of $275,000, an average contribution margin ratio of 34%, and fixed expenses of $100,000.Required:a. Management is considering adding a new product to the company’s product line. The new item will have $8.25 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio.b. If the new product adds an additional $30,600 to D&R’s fixed expenses, how many units of the new product must be sold at the price calculated in part a to break even on the new product?c. If 20,000 units of the new product could be sold at a price of $13.75 perunit, and the company’s other business did not change, calculate D&R’s total operating income and average contribution margin ratio.d. Describe how the analysis of adding the new product would be complicated if it were to “steal” some volume from existing products.Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales 4,200 4,100 4,300 4,400 Sales price $29.82 $30.00 $30.31 $33.19 Variable cost per unit $12.15 $13.45 $14.02 $14.55 Fixed operating costs $41,000 $41,670 $41,890 $40,100 This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project’s four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project’s net present value (NPV) would be under the new tax law. Determine what the project’s net present value (NPV) would be under the new tax law. $80,438 $67,032 $77,087 $60,329 Now…Question Part Score If it holds the sales price constant and makes the suggested changes, how many units of product will Wildhorse have to sell to make the same operating Income before taxes as last year? Required sales units If Wildhorse wishes to maintain the same contribution margin ratio, what selling price per unit of product must it charge next year to cover the increased materials costs? (Round answer to 2 decimal places, e.g. 15.25) Selling price per unit $