4. If the company wants a 20% before-tax return on sales, what level of sales, in pesos, does it need? 5. If the company wants a P60,000 after-tax profit, how many units must it sell? 6. If the company wants an after-tax return on sales of 10.5%, how many units must it sell?
Q: Lem Company pays time and a half for hours in excess of 40 hours per week. If an individual is paid ...
A: Normal labor rate = P60 per hour Bonus rate = P60 x 1.5 = P90 per hour
Q: Chemi Co. produces chemicals Koo and Lam and incident to their production recovers a by-product, Boo...
A: Net realizable value = Total market value - Further process costs Total costs to be allocated = Tota...
Q: How fill IRS Form 1120 Corporations with this info: (it's a fake company) For learning purposes only...
A: The calculation answer for the above mentioned solution is given in the following steps for your ref...
Q: Owners enjoy limited liability in a a) partnership b) corporation c) sole proprietorship d) prop...
A: Solution: Corporations are separate legal entity from owners / shareholders. In corporations, owners...
Q: In a Section 351 transaction, Moustapha transfers property to a corporation with a fair market value...
A: Non taxable transaction under Section 351 only if all the contributors of cash + property have 80% o...
Q: Financial audit Q&A What risks that may occur during assertion testing, but cannot be prevented due ...
A:
Q: Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are alloca...
A: Solution: Total joint costs = 4,560 Sale value of Product A at split off point = 500*10 = 5,000 Sale...
Q: (b) Prepare the journal entry to record 2021 income tax expense, income taxes payable, and deferred ...
A: Solution:- Given, Financial Income = $1,634,000 in 2020 and $1,359,000 in 2021. Purchase Equipment =...
Q: Fees Eamed elsanne (meron, Capital Acumsaned Depreciution Bulding Enerson Company General Ledger UNA...
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: At the beginning of April, Chickadee Corporation has a balance of $11,500 in the Retained Earnings a...
A: Using the external transactions above, computation of the balance of retained earnings at April 30: ...
Q: Jared Manufacturing Company provides you with the following information: Materials in Process 2 are...
A: In FIFO method of process accounting, the work done on beginning WIP is to the extent of work undone...
Q: A and B are partners who share profits and losses in a ratio of 1:2 with capital balance of 900k and...
A: Capital A = 900,000 B= 1,800,000 Admit C Capita = 900,000 Sharing ratio = 25%
Q: i. Define the term contract. ii. State the objectives of Contract costing Identify types of contract...
A: As per Bartleby policy, only the first three parts of the interlinked question are answered Contract...
Q: Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. Happy, Inc. produc...
A: Variance is considered as the difference between budgeted value and actual results. The management u...
Q: Mango LLC sells its product for $60 and has variable cost of $30 per unit. The total fixed costs are...
A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit = ...
Q: Mary is considering opening a hobby and craft store. Mary plans to operate the business for six year...
A: Present value refers to the current value of an amount that is receivable in the future.
Q: Following is relevant information for Snowdon Sandwich Shop, a small business that serves sandwiches...
A: Contribution margin = Sales - Variable costs Net Operating Income = Contribution margin - Fixed cost...
Q: During the year, the ABC partnership's operations generated a loss. The partnership agreement provid...
A: Solution: A partnership is a contract between two or more person to undertake business operations an...
Q: PSc 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (Pre-2020 Form W-4) For...
A: The federal withholding tax has seven rates are : 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The federal...
Q: olac Company acquires 30% of the voting stock of Talgo Corporation on January 1, 2019 for $ 25,000,0...
A: Amortization is the process of writing off value of assets ,it means decreasing the value of assets ...
Q: Adams Co. reports the following balance sheet accounts as of December 31. $ 7,400 Retained earnings ...
A: A balance sheet is a financial statement of position of the company's assets, liabilities and equity...
Q: During the month of June, Job 100 was started. Data are as follows: Units produced is 1,200 units; U...
A: Gross margin is computed using formula = Sales revenue - Cost of goods sold Where Sales revenue = Re...
Q: 47. The following standard data are available for ABC Corp to produce one unit of product X: · ...
A: Material cost per unit = 3 Yards at 5 per yard = 3*5 = 15 Direct labor cost per unit = 2 hours at 10...
Q: Q.5 S Corporation uses the following activity rates from its activity-based costing system to assign...
A: Activity based costing is one of the important costing technique, under which all indirect costs and...
Q: X Corp has $500 of book income. Included in the book income is $10 of dividends from a 10%-owned cor...
A: The taxable income is the amount used in determination of tax which is different from actual income ...
Q: When the profit and loss agreemen
A: The meaning of partnership business is two or more persons bringing the capital to form the business...
Q: the implementation of a new system would have a payback period of 5 years while gaining Php 175,000 ...
A: 1)Payback period is a period which shows how much time a project takes to recover the initial invest...
Q: Sally and Jim are married and have taxable income in 2019 of $700,000. If they could file their inco...
A: You have the option to file either as single individual Filers or as married couples. So marriage pe...
Q: Financial audit Q&A What is the inspection activities to ensure the shipping or Destination Point in...
A:
Q: A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able...
A: Answer) The amount of cash contributed by A2 in the partnership firm will be equal to 1.50 times of ...
Q: On December 31, 2021, A&B Partnership has net income amounting to P350,450. Adjustments and correcti...
A: Adjustment to Net Income: Amount (P) Insurance expense account has a debit balance of P...
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of ...
A: The net income is calculated as difference between sales and total expenses incurred. The total expe...
Q: aughn Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers...
A: The question is based on the concept of Financial Accounting. Bank Reconciliation Statement: It refe...
Q: What is the amount of revenue that Avocado should earn each month to break even? (Round your answer ...
A: Introduction:- Break-even sales means where There is no profit or loss Total revenues equals to tot...
Q: Wynn Farms reported a net operating loss of $195,000 for financial reporting and tax purposes in 202...
A: Solution 1: Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017...
Q: K Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,000; P200,000; P300,000, re...
A: The partnership comes into existence when two or more persons agree to do the business and further s...
Q: edits? I understand what the definition of a credit is, but what does it mean to apply credits in ac...
A: A credit application is a request for credit presented to a credit provider by a potential borrower....
Q: Specific employee earnings, withholdings, and pay detail to include hours worked, gross pay, net pay...
A: The employees are paid by the employer for the work done by him. Each payment made are recorded by t...
Q: During the year, the ABC partnership’s operations generated a loss. The partnership agreement provid...
A: Solution: Share of loss of partner A = P8,000 Salary and interest to Partner A = P2,000 + P15,000 = ...
Q: Information concerning a product produced by Ender Company appears here: 2$ %24 165 Sales price per ...
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Break-even units = ...
Q: On January 1, 2022, A and B formed a partnership by contributing P200,000 and P180,000 respectively....
A: The question is related to Partnership Accounting. The details are given regarding capital introduce...
Q: 32. Partners X, Y and Z had average capital account balances during the year of P400,000, P500,000 a...
A: Partnership is lawful association of two or more persons to carryout any business activity and share...
Q: 7 Augusta Inc. is a manufacturing company whose total factory overhead costs fluctuate somewhat from...
A: Under High-Low Method the per-unit variable cost is computed as follows: - Per Unit Variable Cost = ...
Q: slo Company prepared the following contribution format income statement based on a sales volume of 1...
A: The break even sales units are calculated as fixed cost divided by Contribution margin per unit. Bre...
Q: The following Journal entries occurred in 2019 SAS invested 100,000 in cash in the ...
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred b...
Q: He and She formed a partnership and to share in the profit or loss equally. She contributed building...
A: Amount to be credited to She’s Capital Account will be equal to the amount of Net Assets contributed...
Q: Trial Balance to be correced Account Titles Cash in Bank Debit Credit 25,000 ccounts Receivable uppl...
A: Trial Balance: After posting the ledgers the balances of those accounts are posted in Trial balance....
Q: 21. Joint products A, B and C are produced by JNT Corp. For the month just ended, these data are ava...
A: The question is related to Joint Products. In Average unit cost method the cost per unit will be cal...
Q: Pharoah Corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on Januar...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: QUESTION 2 Don found a valuable jewel in the street. Unknown to Don, the jewel had jarred loose and ...
A: Question 2 b) Don would win against George, but lose if Kate challenged his title to the jewel ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- PROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000),as well as potential market, Babaero Company established what it considered to be a reasonable selling price. The company expected to sell 20,000 units per month and planned its monthly results as follows: Sales @P25 Less: Variable costs @P15 Contribution margin Less: Fixed costs P500,000 (300,000) 200,000 (125.000) 75,000 Income before taxes ( 30,000) P 45,000 Less: Income taxes Net income Requirements: On the basis of the preceding information, answer the following independent questions. 1. What is the break-even point in units? If the company determined that a particular advertising campaign had a high probability of increasing sales by 8,000 units, how much could it pay for such a campaign without reducing its planned profits? 3. If the company wants a P90,000 before-tax profit, how many units must it sell? 2PROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000),as well as potential market, Babaero Company established what it considered to be a reasonable selling price. The company expected to sell 20,000 units per month and planned its monthly results as follows: Sales @P25 Less: Variable costs @P15 Contribution margin P500,000 (300,000) 200,000 (125,000) 75,000 { 30.000) P 45,000 Less: Fixed costs Income before taxes Less: Income taxes Net income Requirements: On the basis of the preceding information, answer the following independent questions. 2 If the company determined that a particular advertising campaign had a high probability of increasing sales by 8,000 units, how much could it pay for such a campaign without reducing its planned profits?Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25 Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
- Question 4: Dhofar Company manufactures twoproducts M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat. T Initial estimates for the sales budgets for the year ending 31. December 2021 which are based on theassessments of the divisional executives are as follows; Product M1: Salalah 45,000 units: Raysut 110,000 units and- Mirbat: 25,000 units| Product Z1: Salalah 70,000 units: Raysut 82,000 units and- Mirbat:0| Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas. Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalah division: sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbat area· in the second half of 2021 when salesare expected to be 100,000 units.¶ Since the estimated sales of the Raysut division represented· an unsatisfactory target, it is agreed to increase both the estimates by 15-%. Prepare a sales budget for the year to 31 December…Question 2: Nizwa Company has the following information given in OMR. OMR Fixed Cost 14750 Break even Sales 20000 You are required to calculate the values below; a) PV Ratio b) Profit when sales are 25000 c) New BE point if selling price is reduced by %20Q4 From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) PIV Ratio. (b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36) (c) New break-even point if selling price is increased by 20%.
- Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25Choose the correct letter of answer At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety? a. P24,000b. P67,600c. P120,000d. P52,400Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 New BE point if selling price is reduced by %25
- Question 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of P60,000) and potential market, F Company established what it considered to be a reasonable selling price. The company expected to sell 50,000 units per month and planned its monthly results as follows: Sales P500,000 Variable costs 375,000 Contribution margin 125,000 Fixed costs 60,000 Income before taxes 65,000 Income tax (40%) 26,000 ----------- Net income P 39,000 ======== Using the above information, compute the following: a. What selling price did the company establish. b. What is the contribution margin per unit? c. What is the break even point in units? d. If the company wants a P60,000 before tax profit, how many units must it sell? e. If the company wants a 10% before tax return on sales, what level of sales in pesos does it need? f. If the company wants a P45,000 after tax profit, how many units must it sell? g. If the company wants a before tax return on sales of 16% on its…6. Dexter Corporation forecast the following units and selling prices: Year 1 Year 2 1,000 $10 1,500 $12 Year 1 $2,000 $5 Year 3 2,000 $15 Unit sales Selling price per unit Please calculate Dexter's projected or proforma sales. 7. Continuing from the prior problem, Dexter has the following fixed cost per year and variable cost per unit each year: Year 2 $2,100 $6 Year 4 3,000 $18 Year 3 $2,200 $8 Year 4 $2,400 $9 Annual fixed costs Variable costs per unit Assuming these are all the costs for Dexter. Please calculate Dexter's projected or proforma profit. 8. Continuing from the prior two problems, if Dexter pays 20% of pretax income (not sales) in taxes to various government authorities, please calculate Dexter's after-tax net income.