You rent a retail stall in the mall for $300 a month and use it to sell T-shirts with funny captions of the world we live in. You sell each T-shirt for $25, and your cost for each shirt is $15. You hired a salesperson and pays $400 salary per month plus a commission of $0.50 for every T-shirt sold. Create a contribution margin income statement for two different months: in one month, assume 100 T-shirts are sold, and in the other month, assume 200 T-shirts are sold.
Q: P Corporation paid $440,000 for 80% of S Corporation's $10 par common stock on December 31, 20X6,…
A: Consolidated Balance Sheet for year ending 31/12/2016 Particulars Notes $ ASSETS…
Q: Vermont Treats makes blueberry jam and blueberry syrup. Both products come out of a joint process…
A: Joint cost is the cost allocated to the products jointly involved in the process of production. It…
Q: Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed…
A: The variable costs directly change with sales if the entity increases sales the variable costs…
Q: Required: a. How much of the unit product cost shown above is relevant in the decision of whether to…
A: a. The relevant costs in the decision of whether to make or buy the part are the costs that will…
Q: Accounting The Statement of Realization and Liquidation for NMCC Corporation is as follows: ▪Assets…
A: 1.To find the amount of Assets not realized, we can use the formula:Assets not realized = Assets to…
Q: esent the journal entry for (a) usage of direct and indirect materials. (Record debits first, then…
A: The direct Costs incurred are debited to work in process account. The indirect cost incurred is…
Q: Jim and Jane are a married and file their taxes jointly. They have dependent children, which allow…
A: Taxable income is income available after deductions and subjected to the taxes depending on the…
Q: Becky has a small business. In 2022 she had business income of 270,000. During 2022, she purchased…
A: A section of the tax law known as Section 179 enables companies to write off the entire cost of…
Q: Q7. Which of the following would be categorized as a cause of external obsolescence? a. Lack of…
A: 7. The correct answer is: (A) Increased traffic flow due to more intensive use in the local area.…
Q: Terminal Industries (TI) produces a product using three departments: Mixing, Processing, and Filter…
A: Weighted average method in costing is used to determine the cost of units transferred and units in…
Q: A. How many metres of fabric were used? (Hint: Metres used was not the same as the metres…
A: Cost variance analysis involves examining the difference between the actual cost of a project or…
Q: On January 1, 2022, Blossom Company purchased the following two machines for use in its production…
A: Depreciation expense is the reduction in the value of asset due to its use, wear or tear. Journal…
Q: Cullumber Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a…
A: The note payable is recorded as liabilities in the balance sheet. The accrued interest is the amount…
Q: Learning Objective 2: Question 2 Robertson Corp. provides pool supplies to community pools in…
A: Bonds are some issued at par or may be at discount or may be issued on the premium also it depends…
Q: Chattanooga Development Company wants to evaluate replacing an older machine requiring significant…
A: Lets understand the basics. When there are two alternatives available then management try to choose…
Q: resources for the month follows. Parts management Energy Quality inspections Long-term labor…
A: Income statement can be prepared using different methods: A. Traditional income method B. Activity…
Q: O is concerned with whether a project clears the minimum required rate of return F comes before the…
A: Capital budgeting is very important for companies in selecting the best and vaible projects and…
Q: Jennifer transfers properties to Mump Co. in an exchange that meets all the requirements of Code…
A: The answer is given below
Q: Jordan electronics currently produces the shipping containers it uses to deliver the electronics…
A: Total relevant cost refers to the sum of all costs that are directly related to a particular…
Q: A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two…
A: Breakeven point is calculated by dividing the contribution margin with the amount of total fixed…
Q: Required information [The following information applies to the questions displayed below.) NewTech…
A: The depreciation expense is charged on fixed assets as the reduction in the value of the fixed…
Q: Zillow chair company manufacturers a standard recliner. There were 15,000 chairs in the firm's…
A: FIFO METHOD :— Under this method, equivalent units is calculated by adding equivalent units in…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Flexible budget is not static budget and is prepared for the actual units. Thus, this budget is…
Q: Competent emails will help you make a positive impression and show your professionalism workplace.…
A: Writing competent emails is a crucial skill in today's workplace. A well-written email can help you…
Q: Mr. Yamazaki, a Japanese citizen residing in Tokyo, Japan, died with the following properties in the…
A: In the Philippines, estate tax is a tax imposed on the transfer of the net estate of a deceased…
Q: How does the accounting cycle work, and what are the key steps involved in recording, summarizing,…
A: A set of procedures known as the accounting cycle is used by firms to record, compile, and present…
Q: Q1. Real estate appraisers generally distinguish among the concepts of market value, investment…
A: 1. Market value is an estimate of the most probable price a property would sell for in a…
Q: Sunland Company is a multiproduct firm. Presented below is information concerning one of its…
A: The various methods for inventory valuation are FIFO, LIFO and average method. Using FIFO, the older…
Q: Required: Indicate the differences in accounting treatment under IFRS and under US GAAP for the…
A: Under IFRS and US GAAP, inventory is valued at the lower of cost and net realizable value (NRV).…
Q: S The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the…
A: Balance sheet :— It is one of the financial statement that shows list of final ending balances of…
Q: Finished goods. Other... Total inventories. 791 369 $3,266 851 348 $3,379 Required a. Identify the…
A: On a company's financial records, inventories are valued using the LCNRV technique, which uses the…
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…
A: The overhead can be applied using single overhead rate or activity rates. The activity rate can be…
Q: Concord Company's record of transactions concerning part X for the month of April was as follows.…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Liquidity ratios - measure the short-term ability of the entity to pay its maturing obligations and…
A: Financial ratios are quantitative metrics used to evaluate a company's financial performance,…
Q: Briefly explain your understanding of exempt income and state twelve (12) types of exempt income…
A: Exempt income refers to income that is not subject to taxation under the relevant tax laws or…
Q: Cavy Company estimates that the factory overhead for the following year will be $1,788,000. The…
A: Overapplied overhead occurs when expenses incurred are actually less than the budget.
Q: Pharoah Holdings Inc., a publicly listed company in Canada, ventured into construction of a mega…
A: Introduction Here, the property is an investment property and the fair value model is used.…
Q: Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100…
A: Activity variance :— It is the difference between planning budget and flexible budget. Flexible…
Q: Data concerning Wislocki Corporation's single product appear below: per unit selling price $190…
A: Net operating income is the amount of income earned by the entity after deducting the operating…
Q: Charlie, a self-employed financial planner, had the following expenses in 2021 in the following…
A: Introduction For calculating the deductible amount, we need to consider the tax rules…
Q: Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $306,000 on…
A: Consolidated financial statements are a group of companies financial statements presented as if they…
Q: Which of the following accounting concepts requires that financial statements be prepared under the…
A: Financial statements are documents that provide information about the financial performance and…
Q: This is a new manufacturing corporation that issued $30000 common stock for cash on the first day.…
A: Date Particulars Debit ($) Credit ($) 08-04-20x5 Raw Material Inventory Dr…
Q: Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the…
A: The journal entries are recorded below
Q: A Parent Company owns 100 percent of its Subsidiary. During 2021, the Parent company reports net…
A: Parent company is that company which has right to control other company. The other company is known…
Q: IFRS requires all of the following when classifying receivables except Select one: O a. Indicate the…
A: The accounts receivable are the amount due from the customer for the credit sales. The company makes…
Q: Hi there! Thank you so much for answering my question for some reason it it saying #1 is wrong
A: Total cash collections from the customers include cash sales, credit sales received during the…
Q: Matching Federal Debt Collection Practice Act (FDCPA) Federal Credit Billing Act (FCBA) Federal…
A: The financial industry is governed by several federal laws that aim to protect consumers' rights and…
Q: Minden Company is a wholesale distributor of premium European chocolates. The company's balance…
A: Business organizations prepare a revenue summary so that they can understand how much profit they…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Acme Inc. manufactures and sells widgets. Acme Inc. sells widgets for $15 each. Acme Inc. uses 3 gizmos for each widget. Gizmos cost $2 each. In December, Acme sold 300 widgets. Acme also pays rent of $500 per month. please show work. A.) What is Acme Inc.'s contribution margin per unit? B.) What is Acme Inc.'s contirbution margin ratio? C.) Assuming the about information is all revenue and expenses for scme, what is December's net income? D.) Determine the fixed cost give the following information: Lowest level of activity- 200 units at a total cost of $600 Highest level of activity- 800 units at a total cost of $1,800 Fixed cost =Paragraph Question 1: Darby is running a flower stand, and is selling a single bouquet for $31.50. Her contribution margin is $24.57 per bouquet and the breakeven sales in dollars for Darby's flower stand are $700 per day. How much can she pay per day in fixed costs to run the stand? TYou want to open up a custom skateboard shop. You can sell each skateboardfor $160. It takes 3 hours to make each skateboard. Each skateboardmaker earns $25 per hour. Each skateboard costs $15 in raw materials. Youestimate that your fixed costs are $20,000 per month.a. What is the contribution margin?b. How many skateboards must be sold each month in order to break even?c. What is the break-even dollar amount?d. How many skateboards must be sold to earn a $10,000 profit each month?e. What is your total monthly revenue if you want to earn a profit of $8,000?
- Radien runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $1,100. Raiden spends $2.50 on each hot dog sold, including bun and condiments. She sells each hot dog for $5.00. 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. Predict operating income for a month in which Raiden sells 1,300 hot dogsYou are going to open a business making custom cabinets. You can selleach cabinet for $80. It takes a cabinetmaker approximately 45 minutes tomake one cabinet. Each cabinetmaker works an 8-hour day earning $18 perhour. Each cabinet uses $25 in raw materials. You usually produce cabinets20 days a month and can employ two cabinetmakers. You estimate thatyour fixed costs are $5,000 per month.a. What is your contribution margin?b. How many cabinets must you make each month to break even?c. What is your total monthly revenue if you want to earn a $2,000 profit?d. Construct a break-even chart for the custom cabinet firm. Part D is neeededYou are going to open a business making custom cabinets. You can selleach cabinet for $80. It takes a cabinetmaker approximately 45 minutes tomake one cabinet. Each cabinetmaker works an 8-hour day earning $18 perhour. Each cabinet uses $25 in raw materials. You usually produce cabinets20 days a month and can employ two cabinetmakers. You estimate thatyour fixed costs are $5,000 per month.a. What is your contribution margin?b. How many cabinets must you make each month to break even?c. What is your total monthly revenue if you want to earn a $2,000 profit?d. Construct a break-even chart for the custom cabinet firm.
- Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing dinner is $40 per ticket and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 15,000 patrons each month. What is the contribution margin ratio?You have a business selling and delivering pizzas to businesses for lunch. You pay $4,000 per month in rent, $320 for utilities, and $2,000 a month for salaries. You also have delivery cars that cost $1,000 per month. Your variable costs are $8 per pizza for ingredients and $4 per pizza for delivery costs. You sell the pizzas for $20 each. Round up if necessary What is the number of pizzas you need to sell to break even for the month If you want to make a profit of 2,000 per month, how many pizzas do you need to sell? Round up if necessary Go back to the original numbers If the price of cheese goes up and your variable costs go by $3 what is your new break even in pizzas if you increase your price to $21 Round up if necessary Golden Company has a fleet of delivery trucks and has the following Overhead costs per month with the miles driven Miles Driven Total Costs March 50.000 194.000 Aprill 40.000 170.200 this is the low May 60.000 217.600 June 70.000 241.000 Use the High-Low method to…Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Required: 1. Calculate the prime cost per cleaning. 2. Calculate the conversion cost per cleaning. 3. Calculate the total variable cost per cleaning. 4. Calculate the total service cost per cleaning. 5. What if rent on the office that Jean and Tom use to run HHH increased by 1,500? Explain the impact on the following: a. Prime cost per cleaning b. Conversion cost per cleaning c. Total variable cost per cleaning d. Total service cost per cleaning
- 1.As an optician, on average, you sell eyeglasses for $80/pair. For every pair that you sell, the lenses, eyeglass frame, and the eyeglass case cost you altogether on average, $55. Your total fixed expenses are $500/month. For every pair of eyeglasses you sell, the contribution margin is: (calculate the contribution margin). Be sure to put a $ in the front of your answer. 2. From the information below: BALANCE SHEET for HSA Corporation as of Dec 20th, 2010 Assets: Liabilities: Current Assets: Current Liabilities: Cash Accounts Payable Payroll Total Current Liabilities $ 50,000 Inventory Account Receivables (net) Total Current Assets: Long Term Assets: Property & Equipment $ 40,000 $ 50,000 $ 25,000 $ 115,000 Long Term Uabilities: Long term debt $ 15,000 $ 35,000 $325,000 Total Assets $440,000 Total Liabilities calculate the quick ratio for the HSA corporation $125,000 $175,000Below is the amount of labor employed by a starting business which makes bags out of recycled materials and the amount of output produced monthly. They rent out one building space which costs P5,000. A worker costs P10,000/month. The price of a bag is P80. Compute the costs incurred by the firm as well as its revenue and profit. Show all your solutions. How much bags should the business produce?A daycare charges $46 per day per child. Fixed expenses include $126 per day for wages and $339 per day for space rental and insurance. The daycare can take in up to 15 children each day and is expected to be full. (a) To break even, what is the most that can be spent on supplies per child per day? (b) To achieve a profit of $60 per day, what is the amount that can be spent on supplies per child per day? (a) To break even, the most that can be spent on supplies is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) instructor W O Bu barna Clear all Check answer TUF GAMINE