Hunter Inc. sells a unique product with the following information available: Sales price Variable costs Fixed Costs Units produced and sold $85 per unit $25 per unit If one more unit is sold, net income will: $10,000 1,250
Q: C O A company uses the aging of receivables method. During the year, the company recorded credit…
A: ALLOWANCE FOR DOUBTFUL DEBT ACCOUNTAllowance for Doubtful debt Account is Considered as Contra…
Q: Required information [The following information applies to the questions displayed below.] Autumn…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: Which of the following is a benefit of selling on credit? Select one: Expenses are reduced by making…
A: The net sales are calculated as gross sales less sales returns and allowance. The sales are the…
Q: Casting Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost 18,000…
A: Applied overhead is recorded as a direct overhead charge in the cost accounting technique. It refers…
Q: On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence for R2…
A: Gain:In accounting, gain refers to the amount when the market value of the asset is greater than the…
Q: When does the cost of purchasing raw materials become an expel When the goods being produced with…
A: Cost of purchasing raw materials are debited to raw materials invenotry when purchased and…
Q: Miller Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been…
A: Variance analysis is a method to calculate the difference between the budget values and actual…
Q: W E ation Star City Manufacturing Company established the following standard price and cost data:…
A: The flexible budget variance is calculated as the difference between the actual results and flexible…
Q: if a company billed its branch at 25% markup and sent goods at billed price 187500, the company…
A: The objective of the question is to determine the correct accounting entry that the company would…
Q: Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract…
A: Solution:-The inquiry concerns Quatro's bond issuance on January 1, 2021, outlining details about…
Q: Steinar loaned a friend $9,500 to buy some stock 3 years ago. In the current year the debt became…
A: The question is asking for two things: firstly, how much Steinar can deduct for the bad debt this…
Q: and total cost data for its operating activities of the past year Management wants to use these data…
A: High-low method is one of the techniques that is used to separate fixed and variable components from…
Q: . Determine for each truck the depreciation rate per mile and the amount to be credited to the…
A: Depreciation : Depreciation is systematic process of writing down the value…
Q: Pharoah Company applies manufacturing overhead based on direct labor hours. Information concerning…
A: The predetermined overhead rate is a fixed hourly rate used to allocate manufacturing overhead costs…
Q: Delta Company produces a single product. The cost of producing and selling a single unit of this…
A: Financial Advantage: The financial advantage is the extra revenue the manufacturing unit gets from…
Q: On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $566,600 for real estate…
A: COST ALLOCATIONWhen item of cost are Identifiable directly with some products or departments such…
Q: Ries, Bax, and Thomas invested $40,000, $56,000, and $64,000, respectively, in a partnership. During…
A: Partnership:A partnership is a type of business that is founded by more than two people to carry out…
Q: University Car Wash purchased new soap dispensing equipment that cost $240,000 including…
A: Depreciation -Depreciation is the annual, explicit, and indirect expense incurred by a business…
Q: if a compan ships goods at mark up 30% to its local branch which has 45,500 begining inventory, for…
A: Combined statements for overvaluation mentioned here mean the various adjustments that have been…
Q: Westcoast Purveyors had 345 computer system in stock at the end of the year. Inventory records show…
A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…
Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…
A: Capital budgeting refers to the tool which is used in evaluating the investment proposal in order to…
Q: Larner Corporation is a diversified manufacturer of industrial goods. Ine company's activity-based…
A: Activity based costing system.It is a cost allocation method where all indirect costs and expenses…
Q: if a company billed its branch at 25% markup and sent goods at billed price 187500, the company…
A: The objective of the question is to determine the correct accounting entry that the company would…
Q: Provide the missing data in the following table for a distributor of martial arts products: Note:…
A: The return on investment is calculated as net income divided by average operating assets. The margin…
Q: CommercialServices.com provides business-to-business services on the Internet. Data concerning the…
A: Net operating income is divided by average operating assets to determine return on investment, or…
Q: Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C.…
A: Lets understand the basics.When entity is having scare resource in output in the process and…
Q: Direct materials purchases Work-in-process inventory, November 1 Finished goods inventory, November…
A: Fiscal year:Governments and companies utilize fiscal years, which are 12-month periods, for…
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Gla…
A: Flexible Budget -Flexible budgets are essentially static budgets that are used to adjust based on…
Q: The following information is available for Carla Vista Corporation for 2025. 1. 2. 3. Depreciation…
A: if a company recognizes revenue for accounting purposes in one period but for tax purposes in a…
Q: The Millard Division's operating data for the past two years are provided below: Year 1 Year…
A: The objective of the question is to find the net operating income for Year 1 of the Millard…
Q: Brooke Smith is the Chief Executive Officer of Bess Bistro corporation, a publicly traded, calendar…
A: To determine the deductible amount of Brooke Smith's compensation for Bess Bistro Corporation, we…
Q: Reconstruct the journal entry for cash payments for inventory, incorporating the change in the…
A: First of all we need to find out the amount of inventory purchases made during the year.Then we will…
Q: The bill of materials for each product at Donald's Office Supply is very specific, right down to the…
A: In order to get the initial gross margin % for each product, the following formula will be…
Q: The first production department in a process manufacturing system reports the following unit data.…
A: Equivalent Units of Production -A department's output is always reported in terms of comparable…
Q: Idris Inc. manufactures entry and dining room lighting fixtures. Five activities are used in…
A: The activity-based costing is a way of allocating the indirect costs and overheads. The company…
Q: Blue Spruce Corp. established a petty cash fund early in 2023 to increase the efficiency of…
A: The company decided to set up the imprest fund at $490, and a cheque was issued for this amount and…
Q: Which of the following best represents operating income? Seleccione una: Oa. Income after financing…
A: Income after financing activities (option a): This option describes the net income remaining after…
Q: Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport.…
A: Activity variance is the difference between the planning budget and flexible budget values. If the…
Q: Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report…
A: Break even point:— It is the point of production where total cost is equal to total revenue. At this…
Q: a. How much is Cooper’s total deduction on his Schedule C for special clothing and uniforms? fill…
A: Total deduction refers to the sum of allowable expenses subtracted from an individual's taxable…
Q: Exercise 8-19 (Algo) Depletion of natural resources LO P3 Montana Mining Company pays $4,001,070 for…
A: Depletion means the fall in value of reserve when some reserves has been extracted from mines.…
Q: Complete the following partial flexible budget performance report, and indicate whether each…
A: Flexible Budget for variable cost is calculated by multiplying budgeted variable cost per activity…
Q: Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2;…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: Calculate the amount of any permanent differences for 2023.
A: Permanent differences are the differences between taxable income and accounting income that will not…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: A flexible Budget For May is prepared in the explanation field. Explanation:Step 1: A flexible…
Q: In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1…
A: Having treasury stock allows a business to have more financial flexibility. The shares may be…
Q: a. Record the income tax journal entry on December 31. •Note: If a line in a journal entry isn't…
A: Temporary differences occur when there is a variance between taxable income reported for tax…
Q: Camel with interest 30% and capital 140,000. Seen 30% with capital 175000 and Areen 40% with capital…
A: The partnership comes into existence when two or more persons agree to do the business and share the…
Q: Calculate Diane's earned income credit using the EIC table in Appendix B.
A: The Earned Income Credit (EIC) is a refundable tax credit designed to provide financial assistance…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: The fixed manufacturing overhead refers to the indirect cost incurred by a factory for the…
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.)Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Waskowski Company sells three products (A. B. and C) with a sales mix of 3:2:1. Unit sales price are shown. What is the sales price per composite unit? A. $17.00 B. $25.00 C. $35.00 D. $20.00
- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?
- Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of Model 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix? $14 $21 $35 $56Delta 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.