Assume the following cost information for Standard Corporation: Selling price per unit: $45.00 Variable costs per unit: $25.00 Total fixed costs: $100,000.00 Standard's goal for the month is to earn befote tax net income of $42.500. How many units must be sold to achieve this goal? a. 8.188 umits b. 2125 umits c. 1125 units d. 3.188 units
Q: weakness in internal control over recording purchased equipment may cause the auditor to:
A: Internal control system shows that the comapny is responsible for make sure that the financial…
Q: 1.3 REQUIRED Use the information provided below to calculate the following variances. In each case…
A: Material Quantity Variance :— It is the difference between standard material cost and actual…
Q: Sales and production budgets Bowser Inc. manufactures two models of speakers, Rumble and Thunder.…
A: Introduction: Sales budget is prepared to estimate the number of units sold, selling price at which…
Q: Citrus Corporation is a calendar year S corporation with the following current year information:…
A: Citrus corporation has a operating loss of $(240000) Grapefruit bought 60% of Citrus corporation for…
Q: During May, Peyton entered into the following transactions: May 1. Peyton Sawyer made an additional…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: A large retailer such as Walmart possesses power over smaller suppliers. In theory, Walmart could…
A: 1.Walmart is a large retailer that possesses power over smaller suppliers. In theory, Walmart could…
Q: Agnes transfers a four-apartment investment condominium subject to a non-recourse mortgage to Brad.…
A: A 1031 exchange is an effective way to defer capital gains taxes on a replacement property when…
Q: Stryker Industries received an offer from an exporter for 26,000 units of product at $17 per unit.…
A: The export order is a special order and hence this will not affect the normal domestic sales.…
Q: A consumer products company reported a 20 percent increase in sales from last year to this year.…
A: Gross profit margin or percentage means the amount of gross profit that an entity could earn as…
Q: Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and…
A: First, compute the direct labor hours required in each department. After computing the total direct…
Q: ) Planning for estate taxes s
A: ANSWERS. Estate planning is the process of setting up activities to control a person's asset base in…
Q: Which of the following does NOT affect the cash flow in investing activities? O Purchase of land O…
A: Investing Activities Cash flow from investing activities is the section of a…
Q: Plant assets often require expenditures subsequent to acquisition. It is important that they be…
A: Lets understand the basics. As per IAS 16, all the cost incurred for the acqusition of the property,…
Q: In the month of June. Oriole Hebert's Beauty Salon gave 3,000 haircuts, shampoos, and hair colorings…
A: Variable Cost - Variable Costs are those costs that change according to the change in output. The…
Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…
A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…
Q: AYALA LAND, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands, Except…
A: Horizontal Analysis is a financial statement analysis tool used for comparison of historical data of…
Q: The following information is available concerning Nunan Corporation’s sinking fund: 2019 Jan. 1…
A: INTRODUCTION: A journal entry is often made in the general ledger, but it can alternatively be…
Q: Revenue: Product Service Total revenue Cost of revenue: Product Service Total cost of revenue.…
A: Gross profit margin is the ratio which is used to determine the percentage of gross profit with…
Q: Keller Corporation (the lessee) entered into a general equipment lease with Dallo Company (the…
A: Operating Lease: Operating Lease does not transfer substantially all the risk and rewards to…
Q: 18% was the desirable rate of return? How did you come up with 15% and 20% PVF?
A: 18% is desired rate of return but in question IRR of both the projects have been asked and then it…
Q: The expected average rate of return for a proposed investment of $5,550,000 in a fixed asset, using…
A: The expected average rate of return is the percentage measure of annual return earned on the…
Q: Stock production and sales data from a single product of Sweetsop are given in the following:…
A: In marginal costing, costs are bifurcated into a variable and fixed costs. The total cost is the sum…
Q: Required: 1. Assuming the use of a periodic inventory system, prepare a summarized income statement…
A: Inventory management is collection of methods for tracking, delivering and ordering inventory. By…
Q: Hello can I find the Total asset turnover ratio, Fixed asset turnover ratio, Receivables turnover…
A: The ratio refers to establishing a relationship between two variables. Under accounting, the ratio…
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: INTRODUCTION: Volume Variance is a technique for determining whether there is a discrepancy between…
Q: Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder.…
A: The production budget is used to estimate the units that should be produced for budgeted sales. The…
Q: The following trial balance, prepared by the bookkeeper of Mason Company, does not balance. Mason…
A: The trial balance is prepared using the final balance of the ledger accounts. The debit and credit…
Q: You are the owner of a catering company and require advance payments from clients before providing…
A: Journal entries are the primary reporting of the business transactions in the books of accounts of…
Q: What is the purpose of preparing trading and profit and loss account?
A: Trading Account The majority of the trading account is made up of credit and debit. Direct expenses…
Q: Legislate Company purchased equipment for $80,000 on January 1, 2017, and will use the…
A: Under the double declining balance method of depreciation, rate of depreciation is taken at a twice…
Q: Heron Company purchases commercial realty on November 13, 2003, for $650,000. Straight-line…
A: When a company sells a non-inventory asset for a price that is higher than its value, the additional…
Q: An audit plan for noncurrent debt should include steps that require a. Inspecting the accounts…
A: Introduction:- Non-current liabilities (Non current debt):- A liability which due after one year is…
Q: Cost of Goods Sold (at standard) $368,000 Direct Labor Efficiency Variance $15,000 F Sales Revenue…
A: Variance arises when the actual cost is different from the budgeted cost. The variance balance is…
Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…
A: Ratio analysis s helps to compare two or more financial statements. it analyzes the financial…
Q: Use the following data for the next two (3) questions: In 2021, Mr. Mapagbigay created two (2)…
A: Mr. Mapagbigay created 2 trusts for his minor son, Lucky. Net income of 2 trusts are :- 1. 4,000,000…
Q: Which of the following expenses may a partnership elect to amortize? Advertising expense from…
A: Introduction:- Partnership business means a legal agreement between two or more people individuals…
Q: Morning Sky, Incorporated (MSI), manufactures and sells computer games. The company has several…
A: It is one of the tools to decide an alternative among the given set of alternatives. Under this…
Q: Big Seats has the capacity to produce 100,000 sofas per year but only produces 80,000 sofas per…
A: Operating income is the adjusted revenue of a business after all operating costs and depreciation…
Q: The following information is available for ADT Company, which produces special-order security…
A: Journal Entry:— It is an act of recording transaction in books of account when transaction occurred.…
Q: Which of the following is a correct definition of a concept related to partnership taxation?
A: The correct answer is: (A) A partner's capital-sharing ratio is defined as the percentage of…
Q: LEXINGTON INN CORPORATION Trial Balance December 31, 2022 Debit 1. 2. 3. 4. Account Cash Accounts…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…
A: If a business expense is the same whether more or fewer goods and services are produced or sold, it…
Q: Lotus purchases a new machine for $20,000, and spends $2,000 on sales taxes, $500 for delivery, and…
A: The capitalization cost includes cost price and other expenses that are incurred for making the…
Q: Analyzing the Statement of Cash Flows Information for Ditka Inc. and McMahon Company is given below:…
A: Compute free cash flow as given below: For Ditka Inc.: Free cash flow = Net cash flow from operating…
Q: QS 23-18 (Algo) Pricing using variable GoSnow sells snowboards. Each snowboard requires direct…
A: VARIABLE COST METHOD Variable Cost Method is Of the Important Managerial Accounting Cost…
Q: Journey Company sells 120 packs of Pokemon cards for $30 each. Sales tax of 9% is required on all…
A: There are two types of sales in business and those are enumerated as below: 1. Cash sales 2.…
Q: Blue Company is constructing a building. Construction began on February 1 and was completed on…
A: The expense of borrowing to acquire a long-term asset is known as capitalized interest. Capitalized…
Q: Explain the advantages and disadvantages of using ratio analysis to provide guidance to investors…
A: Ratio analysis is a quantitative analysis of data enclosed in an enterprise’s financial statements.…
Q: to the general fund. What amount is the water division's change in net position on the statement of…
A: Change in net position is also known as Net revenue. Net revenue is calculated by deducting net…
Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? a.…
A: One kind of potential financial obligation known as a contingent liability is one that is predicated…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit Variable costs $13.50 per unit Fixed costs $22,500 Tax rate 40% What volume of sales dollars is required to earn an after-tax income of $40,500? a.$360,000 b.$252,000 c.$90,000 d.$495,000Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
- The following information pertains to Korning Corp.: Selling price per unit $ 670 Variable cost per unit $ 250 Total fixed costs $ 327,600 Income tax rate 35 % How many total units must be sold to obtain an after-tax profit (πA) of $47,775?Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volumeZachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
- Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? a. $18,000; b. $27,000; or c. equal to 20% of sales revenue. Round UP answers to the nearest unit, when applicable. (a) 0 (b) (C) 0 0 units units unitsAssume the following cost information for Johnson Company: Selling price $190 per unit Variable costs $80 per unit Total fixed costs $95,000 Tax rate 21% If Johnson Company desires to earn $30,000 net income: What is the target operating income it must earn? Assume the tax rate is 21% How many units must be sold to achieve this target operating income? What amount of sales revenue must be earned to achieve this target operating income?A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
- A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is Select one: a. 288 units. b. 30 units. c. 24 units. d.32 unitsSuppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profitConsider the following: Fixed expenses P78,000; Unit contribution margin 12;Target net profit 42,000. How many unit sales are required to earn the target net profit? A. 15,000 unitsB. 10,000 unitsC. 12,800 unitsD. 20,000 units