Ten Toes produces sports socks. The company has fixed expenses of $95,000 and variable expenses of $0.95 per package. Each package sells for $1.90. The number of packages Ten Toes needed to sell to earn a $27,000 operating income was 128,422 packages (rounded). If Ten Toes can decrease its variable costs to $0.75 per package by increasing its fixed costs to $110,000, how many packages will it have to sell to generate $27,000 of operating income? Is this more or less than before? Why? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Sales in units
Q: During August 2024, Texit Company recorded the following: • Sales of $37,000 ($22,000 on account:…
A: INTRODUCTION: Journal entries are used to document financial transactions on the general ledger. ADI…
Q: Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed…
A: Fixed cost is not considered a relevant cost So allocated manufacturing overhead costs and allocated…
Q: At December 31, the cash balance per books was $13,985.20, and the cash balance per the bank state-…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Accounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. 2. 3. Using the data above,…
A: ACCOUNT RECEIVABLE Account Receivable are always shown under the Current Assets in the Balance…
Q: On June 13, 20X8, a fire completely destroyed all the inventory of Salmon Lumber Company.…
A: The ending inventory can be calculated by deducting the cost of goods sold from the cost of goods…
Q: Note 1: On April 1 of the current year, Warren Corporation received a $42,000, 6 percent note from a…
A: The question is based on the concept of Financial Accounting.
Q: Industry analysts have predicted a sharp decline in housing demand in the months ahead. After…
A: Degree of operating leverage :— It measures change in operating income due to change in sales.…
Q: B. Prepare a contribution format segmel Jump and columns for the East and West regions.
A: Contribution format Income Statement A firm's various variable costs are subtracted from sales in a…
Q: Raphael and Martina are engage and are planning to travel to Las Wegas during the 2021 Christmas
A: Each and every citizen who has earned the income had to pay the required taxes during the period and…
Q: Deri is a sole trader dealing in automobiles. From the following transactions, pass journal entries…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Tasty Treats is a snow cone stand near the local park. To plan for the future, it wants to determine…
A: Lets understand the basics. In high low method, fixed cost and variable cost gets separated from the…
Q: Dulaney's Stores has posted the following yearly earnings and expenses. Click the icon to view the…
A: The current profit margin is a profitability ratio that shows how much the company generates profit…
Q: work is performed by skilled draftsmen. Rafael Jiminez, Casas’ owner, is considering replacing the…
A: Hi student, Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: 19 20 21 MARTA COMMUNICATIONS, INC. Statement of Retained Earnings For the Month Ended March 31,…
A: INCOME STATEMENT Income Statement shows the Profitability of the Company. Income Statement is one of…
Q: Doh Inc. provides you the following income statements: 2019 2020 Sales $75,000 $90,000 Less:…
A: calculation of correct net income are as follows
Q: When does the RLWT obligation arise, and how much RLWT is payable?
A: Given in the question: Cost of Land $7,50,000 Sale Value $8,00,000 Mortgage on…
Q: Which accounts are affected when $133,000 of indirect goods are used in production?
A: The question is based on the concept of Cost Accounting. When indirect goods are used in the…
Q: Question 8 A portable digital music player is purchased with a downpayment of Php1,000 and the…
A: Down payment – P 1000 Monthly payment – P 1075.89 Time – 1 yr or 12 mnths Interest rate – 6%…
Q: Use the following data to create a complete income statement. All accounts must be correctly labeled…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…
A: The question is based on the concept of Cost Accounting. There are three methods for the valuation…
Q: Writing.com has a beginning inventory of 16 sets of pens at a cost of $2.12 each. During the year,…
A: FIFO METHOD :— Under this method, firstly beginning inventory is used for output then remaining…
Q: Determine the present value, P, you must invest to have the future value, A, at simple interest rate…
A: calculation of present value P are as follows
Q: Comfy Recliner Chairs completed the following selected transactions: i (Click the icon to view the…
A: INTRODUCTION: Journal entries are used in the general ledger to document financial transactions. ADI…
Q: Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at…
A: The direct materials budget, that breaks down the resources that must be acquired so over course of…
Q: Required information Skip to question [The following information applies to the questions…
A: The high-low technique in cost accounting is a means to make an effort to distinguish between fixed…
Q: magine you are a family of four. Mark and Alice are the parents, Sarah is 9 years old and in the 4th…
A: Here asked for Multi sub part question we will solve for first three sub part question for you. If…
Q: red 90% of the ord 125m on 31 Decen ets were as follows
A: Goodwill - An intangible asset known as goodwill is connected to the acquisition of one business by…
Q: tock. The balance sheets of the two companies immediately after the Solution acquisition showed the…
A: A consolidated balance sheet refers to the form of a balance sheet that reflects competition for the…
Q: A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel…
A: Mel madrigal was running short of cash so she invited Gel Panganiban who agreed to contribute to…
Q: On May 1, 2022, Hecala Mining entered into an agreement with the state of New Mexico to obtain the…
A: When the asset is obtained for a period of time, for the purpose of usage and the asset is to be…
Q: Oriole Inc. enters into an agreement on March 1, 2023, to sell aluminum ingots for $240,000 cash to…
A: The agreement includes sales of $240,000 which will be repurchased at an interest of 2%. The…
Q: Alyssa's personal residence (adjusted basis of $100,000) was condemned, and she received a…
A: Given, Adjusted basis = $100,000 Condemnation award = $80,000 Purchase…
Q: The accounting records of New Life Home Store show these data (in millions): (Click the icon to view…
A: The purpose of preparing an income statement is to enable business entities to calculate their…
Q: The debits and credits from two transactions are presented in the following customer account: NAME…
A: Explanation: On August 10th the Company collected cash amounting to $103 from Mobility Products Inc.…
Q: Tableau Dashboard Activity 07-01: Depreciation (Static) Penguin Network Warehouses, LLC ("PNW, LLC")…
A: Answer:- Depreciation is the amount deducted from the cost of the asset on account of wear and tear…
Q: Johnson’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the…
A: Adjusting Entries - Adjusting Entries are required to record to correct the unadjusted ledgers.…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Lets understand the basics. There are two methods are followed under costing method which are, (1)…
Q: At the end of the first pay period of the year, Dan earned $5,000 of salary. Withholdings from Dan's…
A: Wages refer to the amount that an employee receives for the services rendered by them to the…
Q: Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the…
A: Total Manufacturing Cost :— It is the total cost incurred for the manufacturing of product during…
Q: The following are the incomes and expenses of ABCD Ltd for the year ending March 31st, 2013. You are…
A: A profit and loss statement is defined as a statement that shows the amount earned (by subtracting…
Q: Requirement 1a. Compute the acid-test ratio for 2024 and 2023. (Round to two decimals.)…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: As of 2022 Company (as of October 2022) Apple Microsoft Amazon McDonald's AT&T PE Ratio 23.12 25.46…
A: The ratio of price to earnings Price to earnings ratio is also known as a ratio The multiple of a…
Q: Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be…
A: Please fallow the answer as below 4) Answer: Bond: step 1. Pleasant innovations Ltd. Given data:…
Q: (Unless otherwise stated, consider each requirement separately.) e. What questions would have to…
A: Operating income refers to the sum value of money gained by an entity through its daily business…
Q: The following information has been collected from the cost records of P&L company for the year…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: Record the following selected transactions for March in a two-column journal, identifying each entry…
A: Journal entries are the recording of events or transactions of the entity. It is the process in…
Q: e costs per unit: acturing: ect materials labor
A: Answer : Net operating income if it had produced and sold 42,000 units (Absorption costing) :
Q: Fred currently earns $10,400 per month. Fred has been offered the chance to transfer for three to…
A: calculation of Fred gross income reported are as follows
Q: Required information [The following information applies to the questions displayed below.] The…
A: The debt ratio indicates the rate of debt percentage in comparison to the total assets of the…
Q: 7. Prepare the financial statements for the month of September for presentation to Ralph Collins.…
A: Financial statements are those statements which are prepared by the businesses at the end of the…
Step by step
Solved in 2 steps
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Happy Toes produces sports socks. The company has fixed expenses of $95,000 and variable expenses of $0.95 per package. Each package sells for $1.90. The number of packages Happy Toes needed to sell to earn a $28,000 operating income was 129,474 packages (rounded). If Happy Toes can decrease its variable costs to $0.85 per package by increasing its fixed costs to $110,000, how many packages will it have to sell to generate $28,000 of operating income? Is this more or less than before? Why? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. = Sales in units
- Sport ready produces sports socks. The company has fixed expenses of $75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The number of packages Sport Ready needed to sell to earn a $29,000 operating income was 138,667 packages (rounded). If Sport Ready can decrease its variable costs to $0.65 per package by increasing its fixed costs to $90,000, how many packages will it have to sell to generate $29,000 of operating income? Is this more or less than before? Why? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. ( + ) ÷ = Sales in unitsPimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total $434,000.How many units does the company need to sell to breakeven?What are the total sales in dollars at the breakeven point?How many units does the company need to sell to earn a profit of $155,000?Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210. The price of the deluxe model is $500 and its variable expenses are $300. The price of the superior model is $1,600 and its variable expense per unit is $600. The total fixed expenses are $300,000. Generally, Standlar sells 8 standard models and 4 deluxe models for every superior model sold. What is the overall sales revenue of Standlar at break-even point? a.$778,800 b.$480,000 c.$648,000 d.$387,200 e.$550,000
- Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. The company’s fixed costs total $6,660.How many units must Juniper sell to earn a profit of at least $5,400?Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $47 each. The motorcycle helmets are priced at $220 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $57,000 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,850 bicycle helmets and 1,940 motorcycle helmets. Required: 1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year. 2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. 3. Check your answer by preparing a contribution margin income statement.
- Press Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Press's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Press's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, $X.XX, and all other amounts to the nearest whole dollar. Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the…Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. Required: What is the company’s break-even point in units? What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860. 1. What is the contribution margin for one custom skin? 2. How many custom skins must Cheetah Company sell to break even? 3. If Cheetah Company sells 13,000 custom skins, what is the operating income? Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.