Last month, Laredo Company sold 510 units for $55 each. During the month, fixed costs were $5,478 and variable costs were $22 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution margin and contribution margin ratio. Unit Contribution Margin Contribution Margin Ratio %
Q: What is the amount of cash generated from operations?\\nPositive $18,000\\nNegative…
A: The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…
Q: Current Attempt in Progress Greer Golf Supplies is an online store that sells two types of golf…
A: Break even means where there is no profit no loss. Break even point means where the total cost and…
Q: City X purchased $6,000 of new computers during the year from the general fund. Which of the…
A: In governmental accounting, the general fund is the main fund that is utilized to document financial…
Q: Question Content Area Two companies are financed as follows: X Co. Y Co. Bonds payable,…
A: The objective of the question is to calculate the earnings per share (EPS) for both X Co. and Y Co.…
Q: The Accounts Receivable account of Rosewood, Inc. has the following postings: Accounts Receivable…
A: ACCOUNTS RECEIVABLEAccounts Receivable are reported under the current assets section of the Balance…
Q: ! Required information [The following information applies to the questions displayed below.] Bargain…
A: Variable costs: Variable costs vary with the volume of production, which will increase the volume…
Q: ! Required information [The following information applies to the questions displayed below.] Ken is…
A: Gross income refers to the total income earned by an individual or entity before any deductions or…
Q: Q5. A company uses a process costing system for its sole processing department. There were 4, 000…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: The Rink offers annual $400 memberships that entitle members to unlimited use of ice-skating…
A: Transaction price is the amount paid as consideration for the goods exchanged.
Q: 15. On December 15, 2023, Mr. Carino sold a 500 square meter residential condominium The unit was…
A: To calculate the capital gains tax on the sale of the residential condominium unit, you can use the…
Q: You are provided with the following information taken from Sage Hill Inc's March 31, 2027, balance…
A: Cash budget: It is the tool that indicates the amount of available cash is appropriate or not for…
Q: Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1.…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Using accrual accounting rules, ABC Co.'s contractor, Impossible Co., provides it (ABC Co.) with…
A: Under accrual basis of accounting, expenses and revenues are recognized as and when they are…
Q: Paola and Isidora are married; file a joint tax return; report modified AGI of $143,480; and have…
A: To claim the American Opportunity credit, the student must be pursuing a degree or other recognized…
Q: The following information ($ in millions) comes from a recent annual report of Orinoco.com,…
A: The objective of the question is to calculate the cost of goods sold (COGS) for Orinoco.com,…
Q: Pronghorn Inc. has provided you with the following information. This company purchases its inventory…
A: The average-cost technique, also known as the weighted average cost technique, is an accounting…
Q: Pat is a 40 year-old participant in her employer's 401(k) plan. In 2021, she deferred $5,000 in the…
A: Computation of the amount of contribution to a traditional IRA in 2021 when the IRA limit is…
Q: Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $96,000…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: The company issued its 2023 financial statements on April 30, 2024. Calculate the weighted average…
A: The number of outstanding common shares & the period of outstanding for Bonita Corporation for…
Q: Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets…
A: The Accounting Equation is calculated using the following equation -Assets = Liabilities +…
Q: Mundes Corporation uses the weighted-average method in its process costing system. The beginning…
A: The cost of units transferred out refers to the total cost incurred for the units that have been…
Q: C D E 6 The following production data were taken from the records of the Finishing Department for…
A: Under the first in first out method, it is assumed that the items which are produced first are sold…
Q: Froya Fabrikker A/S of Bergen, Norway, manufactures specialty heavy equipment for use in North Sea…
A: Multiple sub parts given, so as per guideline, solving first 3 parts only.Introduction:In Every type…
Q: Greer Company developed the following data for the current year: Beginning Work in Process Inventory…
A: Direct labor cost for the year can be calculated by:Direct labor cost for the year = Total…
Q: Custom Furniture Inc. uses an activity-based costing system. The company has provided the following…
A: The objective of the question is to calculate the overhead costs allocated to job #450 for each…
Q: Use the following data to prepare a statement of retained earnings for Barney Corporation. Total…
A: Retained earnings: This is the accumulated profit of the company from past years.A statement of…
Q: On January 1, 2020, Skysong Corporation issued $5,410,000 of 10% bonds at 102 due December 31, 2029.…
A: Loss of redemption is the difference between carrying or book value of bond and redemption value.…
Q: A return on assets of 5.15% means that a company is earning: O a. a $5.15 return on every $100 of…
A: RETURN ON TOTAL ASSETS Return on total assets is an indicator on how well a company’s investments…
Q: Problem 07-34 (Static) [LO 7-1, 7-5, 7-9, 7-11) SEP, a calendar year corporation, reported $918,000…
A: For accurate financial reporting, adherence to accounting rules, fair financial statements, tax…
Q: Jurvin Enterprises is a manufacturing company with no beginning inventories. A subset of the…
A: T-Account is the ledger account in which journal entries are posted. It is the second step of…
Q: 302,000. a. What is its built-in gains tax in 2022? b. Assume the original facts, except that if…
A: The built-in gains tax for an S corporation is determined by calculating and reporting it on Form…
Q: If $449,000 of 10% bonds are issued at 97, the amount of cash received from the sale is a.…
A: The question is asking us to calculate the amount of cash received from the sale of bonds. The bonds…
Q: Question Content Area Ulmer Company is considering the following alternative financing plans:…
A: The objective of the question is to calculate the earnings per share (EPS) for common stock under…
Q: On January 1, 2023, Fisher Corporation purchased 40 percent (70,000 shares) of the common stock of…
A: A journal entry is a record of a business transaction in your business books. In double-entry…
Q: Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete)…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Q: The following information ($ in millions) comes from a recent annual report of Orinoco.com,…
A: The objective of the question is to calculate the balance in cash at the beginning of the year for…
Q: a. Purchased $94,000 in raw mater b. $89,000 in raw materials were used in production. Of this…
A: Cost of goods sold:cost of goods sold includes the direct expenses used to produce goods, such as…
Q: On December 31, 2023, Berclair Incorporated had 280 million shares of common stock and 3 million…
A: Introduction:Earnings per share:EPS is the ratio between the net profit and outstanding shares of…
Q: Drilling Company uses activity-based costing and provides this information: Driver Rate…
A: Activity Based Costing: Overhead and indirect costs are divided across related goods and services…
Q: On April 1, 202 paid in cash at the time of conversion. (a) (b) Prepare the entry to record the…
A: Given information is:Aubrey Inc. issued $3,780,000 of 10%, 10-year convertible bonds on June 1,…
Q: Gross Profit from Operations Tax Exempt Interest Capital gains Capital Loss carryforward Book Income…
A: Net profits that remain available to a corporation after dividend payments are known as accumulated…
Q: ne of the most common reasons for resource depletion is Multiple Choice 1. inaccurate accounting…
A: Accounting refers to the system of recording and summarizing business and financial transactions and…
Q: Based on the information given to him, Jeffery submits a report on January 1 with some important…
A: NOPAT is the difference between Net Operating Income (EBIT) and Tax. Operating assets mean assets…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88 - HX are as…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…
Q: Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number…
A: Trial balance :— It is the statement that shows list of final ending balances of all ledger accounts…
Q: estimated tax payments are Charles and Joan required to make, if any, for tax year 2023?
A: Estimated tax payment refers to the periodic payments made by individuals or businesses to the tax…
Q: Rubio recently invested $23,000 (tax basis) in purchasing a limited partnership interest in which he…
A: The at-risk limit is a tax provision restricting the amount of losses an investor can claim from…
Q: High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The…
A: The departmental overhead rate is calculated as the estimated departmental cost divided by the…
Step by step
Solved in 3 steps
- Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $104,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $65,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income $ Per Unit 100.00 VolumeA company has a linear total cost function and has determined that over the next three months it can produce12,000 units at a total cost of $224; 000. This same manufacturer can produce 18,000 units at a total cost of$296; 000. The selling price per unit is $13.25.i. Determine the revenue, cost and prot functions using q for number of units.ii. What is the xed cost ?iii. What is the marginal cost ?iv. Find the break-even quantity.v. What is the break-even dollar volume of sale ?vi. What will prot be if the company shuts down operation?vii. If, because of a strike, the company will be able to produce only 10,000 units, should it shut down for the nextthree months ? why or why not ?Fast as Lightning is an oil change service drive-through that charges each customer $24.00 for an oil and filter change service. Fast as Lightning has found that it costs its business $15.00 per oil and filter change. Monthly fixed costs are $44,000; current sales are 8,000 services. a. Compute the breakeven sales in units.b. Compute the margin of safety in units and sales dollars.c. Compute the margin of safety as a percentage.d. Compute the operating leverage factor.e. Compute the percentage of operating income decline if sales fall by 18%.
- Chapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Given the following information complete a CVP analysis for JPL, Incorporated: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $ 75 per unit $45 per unit $ 210,000 Required: Use the data to answer the following. 1. Compute the CM ratio and variable expense ratio. 2. Compute the break-even sales. 3. Compute the margin of safety. 4. Compute the degree of operating leverage.= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…
- Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $20. The sharpeners are sold for $30 each. Fixed operating expenses amount to $40,000. a. Determine the break-even point in units and sales dollars. b-1. Determine the sales volume in units and dollars that is required to attain a profit of $12,000. b-2. Prepare an income statement using the contribution margin format to verify your answer. c. Determine the margin of safety between sales required to attain a profit of $12,000 and break-even sales.Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,800 $3,200 Variable cost of goods sold (3,020) (2,140) Manufacturing margin $1,780 $1,060 Variable selling expenses (964) (548) Contribution margin $816 $512 Fixed expenses (380) (200) Operating income $436 $312 In addition, the following sales unit volume information for the period is as follows: Conquistador 2,800 Hurricane 2,000 Sales unit volume a. Prepare a contribution margin by product report. Compute the contribution margin ratjo for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by ProductEXERCISE 5-11 Break-Even Analysis; Target Profit; Margin of Safety; CM Ratio [LO1, LO3, LO5, LO6, LO7] Pringle Company distributes a single product. The company's sales and expenses for a recent month follow: Total Per Unit Sales ...... $600,000 $40 Variable expenses 420,000 28 Contribution margin . Fixed expenses . Net operating income 180,000 $12 150,000 $ 30,000
- Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $6.50, and each clock sells for $16.00. Required: Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Note: Round your answers to 2 decimal places.Java Joe coffees wants to find an equation to estimate monthly utility costs. Java Joe's has been in business for one year and has collected the following cost data for utilities 1.which of the preceding costs is variable? Fixed? Mixed? Explain 2. using the high-low method, determine the cost function for each cost 3. combine the preceding information to get a monthly utility cost function for Java 4. next month, Java's expects to use 2200 kilowatt hours of electricity, make 1500 minutes of telephone calls and use 32000 gallons of water. Estimate total cost of utilities for the month Month Electricity bill Kilowatt hours used telefone telefone min used Water bill Gallonsof water used January $360 1200 $92.00 1100 $60 30560 February $420 1400 $91.80 1060 $60 26800 March $549 1830 $94.80 1240 $60 31450 April $405 1350 $89.60 980 $60 29965 May $588 1960 $98.00 1400 $60 30568 June $624 2080…Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,500 units, and monthly production costs for the production of 1,200 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($100 fixed) Supervisor's salary. Maintenance ($250 fixed) Depreciation Total Cost $ 2,700 8,100 Suppose it sells each birdbath for $26. Required: 580 3,200 530 750 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,400 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost…