ts decreased from $200,000 to $150,000 and variable cost per unit of $ 5 remained unchanged. How would these changes affect the break-even point? a. The break-even point in units would be increased b. The break-even point in u
Q: What factors should an auditor evaluate or consider when deciding whether to keep working with a…
A: Factors that an auditor should evaluate when deciding whether to keep working with a client: Where…
Q: 1. Cut 2023 sales salaries of $60,000 in half and give sales personnel a commission of 2% of net…
A: I am providing the answers which are incorrect in the previous explanation and (d) part which was…
Q: A company borrowed money from a local bank. The note the company signed requires five annual…
A: The periodic payment is the payment made at the regular interval to repay a loan or debt. Generally,…
Q: rnational purchased 70% of the outstanding common stock of Landon Chemical on December 31, 2021.…
A: Consolidation - The practise of combining the financial reports of the parent business with those…
Q: Poston Company uses an accelerated depreciation method for tax purposes rather than straight-line…
A: There are many methods for taking depreciation it depends on the choice of company to take…
Q: Find EI, COGS using avg, cost, conventional, LIFO, and dollar value LIFO retail methods.
A: Retail Inventory Method An bookkeeping technique used to determine the worth of a retailer's stock…
Q: Roundtree Software is going public using an auction IPO. The firm has received the following bids:…
A: Share is a small part of the company's capital. A company issues shares to the public. The public…
Q: What is the primary objective of the fair value method of accounting for an investment?
A: Investment refers to putting money or capital into the work it means putting money today to increase…
Q: List some of the differences between taxable items for NY State tax purposes and IRS tax purposes
A: The income tax means the tax charged by the government on the income earned by the taxpayer. There…
Q: Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains.…
A: As per the generally accepted accounting principles (GAAP), the point of revenue recognition is upon…
Q: Hall Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures…
A: Solution.. Straight line Depreciation = (cost + Avoidable interest - salvage) / Life of the…
Q: Salaries Payable account nad a beginning balance of $ 28,000 on May 1. During the month of May…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Ivanhoe Inc. considering modernizing its production facility by investing in new equipment and…
A: Capital budgeting is a decision-making process to evaluate two or more projects. With the help of…
Q: Lewis, age 26, and Oneida, age 25, are married and will file a joint return. • They cannot be…
A: As per IRS, any taxpayer with low to moderate income status can claim the Earned Income tax credit…
Q: stion 29: A Chemical Company carries on production operation in two pro through Process I, where…
A: Process Cost - A manufacturing process's direct expenses are tracked, tallied, and distributed using…
Q: Prepare entry for bonds issued. BE10.8 (LO 3), AP Bridle Inc. issues $300,000, 10-year, 8% bonds at…
A: Introduction: When bonds are sold at a price lower than its face value then such bonds are issued at…
Q: Britten plc is preparing its production budget for product A for the forthcoming year. Budgeted…
A: Sales Budget and Production budget :Sales budget is prepared to show the no. of units to be sold in…
Q: n early December Alice and Bob decided to open Sample Cafe with $16,000 of their own money and…
A: Balance sheet is one of the basic financial statements which is prepared for the purpose of finding…
Q: The following data are accumulated by Lone Star Security in evaluating two competing investment…
A: AVEREAGE RATE OF RETURN THIS IS ONE OF THE METHOD OF CAPITAL BUDGETING. THIS METHOD MEASURES THE…
Q: On December 1, 2017, B Corp. receives $1.800 in advance for an agreement to provide services equally…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. Using…
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the…
A: The flexible budget is prepared to estimate the difference between actual and budgeted results. The…
Q: If B is to invest sufficient cash to obtain 3/5 interest in the partnership, Compute the amount B…
A: Partnership firm is where two or more person come together to form a business. And they should share…
Q: Problem 10-56 (LO 10-2, LO 10-3) (Algo) [The following information applies to the questions…
A: Taxable Income - The base of an income tax system is referred to as taxable income. In other words,…
Q: Smith Redliners manufactures leather recliners and uses flexible budgeting and a standard cost…
A: The study of variances between actual behavior and predicted or planned behavior in budgeting or…
Q: Cleve wants to know how much he would need to deposit now in order to have $8,000 in five years at a…
A: The term "present value" (PV) refers to the value at the current time of a sum of money or stream of…
Q: Question 5 Sage Hill Leasing Company signs an agreement on January 1, 2020, to lease equipment to…
A: A capital lease is primarily based on the fact whether, in effect, the rights and risks of ownership…
Q: Selected unadjusted balances and adjusting entry information of Sutherland Insurance Agency at…
A: Salaries expenses shall be debited for $ 2000 Salaries payable shall be credited for $ 2000
Q: It says 285,000 part and the (100,000) part is incorrect please fix thank you.
A: Statement of retained earnings is a part of balance sheet. It shows the balance of owner's equity in…
Q: Bergo Bay's accounting system generated the following account balances on December 31. The company’s…
A: 2-a. Factory Overhead Actual overhead (given) $28,000 Overhead applied (150% of direct labor…
Q: Required information Exercise 11-23 (Algo) Change in estimate; useful life and residual value of…
A: Depreciation under straight line method Under this method a fixed depreciation is charged over the…
Q: It is important to understand your financial statements. While this is not everyone’s area of…
A: A balance sheet is a statement that shows a company's assets, liabilities, and shareholders' equity…
Q: A1 Electronics has one product in its ending inventory. Per unit data consist of the following:…
A: The unit price should be $36 Explanation: Net realization value = selling price - selling cost…
Q: Question 28: A Company produces a component, which passes through two processes. Dur of April, 2013,…
A: Process Costing - Process costing is an accounting technique for tracking and allocating the direct…
Q: Caltex Products plc manufactures electric mini-lawnmowers. Its sales and costs’ budget for November…
A: 1) Budget Statement for Caltex for November Sales (3,000 units x 72) 216,000 Cost of…
Q: Transcom, an Ohio corporation, earned $700,000 U.S. source income from sales of goods to U.S.…
A: To avoid double taxation, the US Taxation authorities will provide credit on the taxes paid in other…
Q: eived a statement from the daycare provider showing she paid $5,980 for Marcus’ care for the year.…
A: A tax credit is basically a sum that can be offset against a tax liability.tax incentive which…
Q: How much goodwill should be recognized by Alto Company when recording the purchase of Franz?
A: Goodwill is an intangible asset. It arises when a company buys a existing business. Goodwill is the…
Q: Discuss the following in your post: What is treasury stock and what is the journal when purchased?…
A: Treasury stock or shares are those shares which are bought back by the company which was issued to…
Q: Outlines TWO advantages and TWO disadvantages of both variable (marginal) AND absorption costing…
A: Variable Costing:- SOLUTION:- Variable costs are costs that change as the quantity of the good or…
Q: Produce a flexed budget statement for Caltex for November
A: Flexible budget is a budget which adjusts or flexes with changes according to volume or activity of…
Q: Calculate the basic EPS
A: 1. EPS shall be calculated for the ordinary equity shares only but not for preference shares. 2. EPS…
Q: Foundation, Incorporated, is comparing two different capital structures: an all-equity plan (Plan I)…
A: The EBIT-EBT study compares alternate methods of financing at different levels of EBIT. Simply…
Q: process costing, if an abnormal loss arises, the process account is generally: a) debited with the…
A: In process costing when goods are produced it is produce by different processes that are done in…
Q: 1-a) Compute days' sales uncollected. 1-b) For each ratio, determine if it improved or worsened in…
A: Days sales uncollected is the ratio which shows thr average number of days the receivables remains…
Q: Calculation of Form W-2, Box 1 Jan (single, age 53) is an employee of Lafayette, Inc. In the current…
A: Form W-2 is related to salaries and tax statements of the employees, and it is mandatorily prepared…
Q: Below is a table showing the total budgeted cost (TBC) vs total actual costs (TAC) in thousands over…
A: Cost Overrun happens when a project's actual cost determined is more than the estimated costs of the…
Q: The construction company entered into a 3-year contract to build a bridge. The required contract…
A: IFRS 15 'Revenue from Contracts with Customers', suggests percentage of completion method for…
Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?
A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…
Q: Florida LLC owns and operates Bay Hotel in Tampa Florida. In July of year 20X5 Florida LLC entered…
A: As per Section 1231, the loss can be set off against the ordinary income as 100% And forfeited…
Q: Strom Inc. provided interior design services for $170,000 to customers using debit cards. Assume the…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
-
Wenthorp Enterprises decreased the selling price for its product from $10.00 to $9.00 a unit when total fixed costs decreased from $200,000 to $150,000 and variable cost per unit of $ 5 remained unchanged. How would these changes affect the break-even point?
a. The break-even point in units would be increasedb. The break-even point in units would be decreasedc. The break-even point in units would remain unchangedd. The effect cannot be determined from the information given.
Step by step
Solved in 2 steps
- A company increased the selling price for its product from P1.00 to P1.10 a unit when total fixed costs increased from P400,000 to P480,000 and variable cost per unit remained unchanged. How would these changes affect the breakeven point? A. The breakeven point in units would be increased.B. The breakeven point in units would be decreased.C. The breakeven point in units would remain unchanged.D. The effect cannot be determined from the information given.(2) Ice Cold Ltd has a current breakeven point of 50,000 units. Which of the following would result in an increase to the breakeven point?a. a decrease in the variable costs per unitb. a decrease in the contribution margin per unitc. an increase in the selling price per unitd. a decrease in the fixed costsHow much would be the net effect on the total segment profit if product B is dropped and discontinued? Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit? Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?
- 1. Find the break-even point in terms of dollars. 2. Find the margin of safety in terms of dollars. 3. The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000, leaving unchanged the selling price per unit, variable expense per unit, and total fixed expenses. Would you advise adopting this plan? Indicate the advantage or disadvantage of the new plan over the current operations. Ex. YES 12345 ADVANTAGE or NO 12345 DISADVANTAGEXYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000 to $500,000, but variable costs will decrease from $12 per unit to $10 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the company's profit if the changes were implementedand production decreased to 45,000 units? a. It will increase. b. It will decrease. c. It will stay the same. d. none of the given answersXYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000 to $500,000, but variable costs will increase from $12 per unit to $14 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the ?company's profit if the changes were implemented, and production decreased to 45,000 units It will decrease .a O none of the given answers.b O .It will stay the same .c O It will increase d O
- XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000 to $500,000, but variable costs will decrease from $12 per unit to $10 per unitit were to implement these changes at its current production level of 50, 0 units (with no change to selling price ), profit would not change. What would happen to the company's profit if the changes were implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase . C-none of the given answers d -It will decrease .Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as the level of activity changes.variable cost is $59 per unit, while Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $223,245. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $100 per unit unitsXYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000 to $700,000, but variable costs will increase from $10 per unit to $12 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price )profit would not change. What would happen to the company's profit if the changes were implemented and production increased to 55,000 units?
- CPL contemplates a change in technology that would reduce fixed costs from P 800,000 to P 700,000. However, the ratio of variable costs to sales will increase from 68% to 80%. What will happen to breakeven level of revenues? A. Decrease by P 301,470.50 B. Decrease by P 500,000 C. Decrease by P 1,812,500 D. Increase by P 1,000,000 Topic: Cost Volume ProfitCesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Product B Product C Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6,000 $9.000 $90,000 48,000 42,000 18,000 9,000 $15.000 $44,000 35,000 9,000 3,000 7,700 S(1,700) increase by $42,000 O increase by $18,000 increase by $36,000 increase by $15,000 ) increase by $24,000XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000 to $500,000, but variable costs will increase from $12 per unit to $14 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the company's profit if the changes were implemented, and production decreased to 45,000 units? O a. It will stay the same. O b. It will decrease. O c. none of the given answers O d. It will increase.