The CVP income statements shown below are available for AX Company and ZY Company at the beginning of 2020. AX Company ZY Company Sales $500,000 $500,000 Variable Costs $110,000 $10,000 Contribution Margin $390,000 $490,000 Fixed Costs $100,000 $200,000 Net Income $290,000 $290,000 Instructions a. Using the breakeven point in dollar, determine which company could be in risk? b. Determine the degree of operating leverage for each company. c. During 2020, both companies faced problems resulted in having a decline in sales by $50,000 and that affected rapidly to the net income during that year. Which company would produce less net income?
Q: go.2
A: Step 1: To accrue the employer's payroll taxes, we need to consider the taxes paid by the employer,…
Q: Week 8 Excel Spreadsheet to be used with the Practice Set: Years Acquisition stage cash flow:…
A: The Week 8 Excel Spreadsheet for the Practice Set includes various financial metrics related to cash…
Q: On January 2, 2020, Headland Corporation issued $1,450,000 of 10% bonds at 97 due December 31, 2029.…
A: First, let's try compute the issue price of the bonds redeemed when it was originally issued. That's…
Q: Bob spent the entire 2019 year in Tokyo. His annual salary was $90,000 and he paid $30,000 rent.…
A: Here's why:Foreign Earned Income Exclusion: For 2019, the maximum amount of foreign earned income…
Q: You bought one of Great White Shark Repellant Co.'s 7.4 percent coupon bonds one year ago for…
A: Step 1:The formulas and the inputs used is as follows: Step 2:The result is as follows: Step 3:…
Q: Compute the Cost of Goods Sold for a retail merchandiser with the below information: Yard…
A: Step 1: Given information:Yard maintenance= $9,000Delivery Expense = $2,050Freight-in=…
Q: 2025 $606,000 The following is a summary of information presented on the financial statements of a…
A: Horizontal analysis compares each line item (Net income in this case) over different periods to…
Q: Lisa is a single self-employed road trucker. She earned 190,000 of self-employment income during the…
A: Step 1: Identify the formula to be usedSelf-employed individuals pay 15.3% in taxes because they…
Q: A9
A: The objective of this question is to calculate the gross margin or gross profit for Battery Co.…
Q: •TCC Furniture Makers makes chairs and tables. With the following data should TCC discontinue the…
A: Step 1: net income with both divisions.Total Contribution Margin = Chair Division Contribution…
Q: Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as…
A: It seems you're looking for assistance with accounting tasks related to ledger accounts and trial…
Q: Edward Company uses the FIFO method in its process costing system. The first processing department,…
A:
Q: Don't give answer in image
A: Step 1:Depreciation is the deduction in the value of the assets as per its consumption. Depreciation…
Q: Unit sales are expected to reach 30,000 per year, the price per unit is expected to be $80, variable…
A: Step 1: Calculate Contribution Margin per UnitThe contribution margin per unit is the selling price…
Q: Answer please provide
A: Step 1: Introduction to the Bank ReconciliationIn accounting, the conduct of monthly bank…
Q: Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its…
A: a. basic earnings per shareEPS (parent) = (Net Income (parent) - Preference Dividend (parents) + Net…
Q: Please provide Answer with calculation
A: Here's a detailed calculation for better understanding. Discount RateThe discount rate is 13% or…
Q: None
A: Step 1: Determine Upfront Expenses Regarding the upgrade choice: The $900,000 initial expense is the…
Q: Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS…
A: Degree of Financial Leverage (DFL)The Degree of Financial Leverage (DFL) measures how sensitive a…
Q: am. 121.
A: Step 1:To obtain the net present value (NPV), first compute the original investment and the…
Q: None
A: Contribution Margin Ratio = 187,500 / 300,000 = 0.625 Sales for Target Profit = (FC + Target Profit)…
Q: Given below is the balance sheet for the Bank of New Providence: Assets ($1,000,000s) Liabilities…
A: Step 1: Introduction to Equity Multiplier:The Equity Multiplier (EM) is a financial metric that…
Q: Sandhill Company bought machinery on January 1, 2009, at a cost of $90,000. The machinery had an…
A: The objective of the question is to calculate the annual depreciation expense for the year 2014 for…
Q: Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The…
A: Computation of Basic earnings per share for the consolidated entity :…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: In the realm of corporate finance and accounting, the consolidation of financial statements plays a…
Q: Answer each question independently. Read the requirements. Requirement 1. A restaurant made cash…
A: Step 1: 1) Journal entries to record sales and related sales tax and the payment of sales tax To…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Referencehttps://airandspace.si.edu/stories/editorial/science-leap-year
Q: Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following…
A: To compute the amount of cash flow associated with the purchase of machinery, we need to analyze the…
Q: (All answers were generated using 1,000 trials and native Excel functionality.) In preparing for the…
A: (a) To calculate the profit when demand is equal to the average (60,000 units), we need to determine…
Q: Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can…
A: Step 1:1. Given that, Net income = $35,188 Initial investment = $463,000 Accounting rate of return =…
Q: The following data from the just completed year are taken from the accounting records of Mason…
A: 1) Schedule of Cost of Goods Manufactured Schedule of Cost of Goods ManufacturedDirect materials:…
Q: The directors also advised the financial accountant to make a provision for: (i) bad and…
A: The objective of the question is to understand how the provisions for bad and doubtful debts and…
Q: Presented below is a flexible manufacturing overhead budget for Ayayai Manufacturing, which…
A: Part 2: Explanation:Step 1: Calculate the standard overhead rate per direct labor hour:Standard…
Q: The contribution margin approach helps managers in short-term decision making because it A. reports…
A: The contribution margin approach helps managers in short-term decision making because it isolates…
Q: Cheyenne Inc. was incorporated in 2024 to operate as a computer software service firm, with an…
A: Cheyenne Inc. needs to record its new computer lease as a finance lease in its accounting records.…
Q: None
A:
Q: Acting and Reporting on Sustainability Sustainability and the environment are topics of increasing…
A: 1. Financial Statements and Reporting:a. Financial statements typically include information on…
Q: You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2…
A: Given information: Initial value of investment (V0) = $8,500 Annual interest rate for first "eight"…
Q: Give me a conclusion paragraph on the role of the auditor
A: The role of an auditor in any organization is of utmost importance. They are responsible for…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Detailed explanationThe traditional income statement shows separate product costs and period…
Q: Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the…
A: Part 2: Explanation:Step 1: Determine the adjusted basis of each asset:- Inventory: The adjusted…
Q: 人 Use the 2020 Federal Tax Rates for Individuals to calculate the estimated taxes for a taxable…
A: The objective of this question is to calculate the estimated taxes for a taxable income of $22,700…
Q: bvs.1
A: Part 2:Step 1: Recognize Prophet's Investment in Seer1. Record the initial investment in Seer by…
Q: None
A: Step 1:Computation of the working capital:Working capital = Total current assets-Total current…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Requirement 1 and 2: Journal Entry for Investment in Bonds on July 1, 2024, and Interest on December…
Q: Worldwide Corp.'s statement of financial position accounts as of December 31, 2023 and 2022 and…
A: The objective of the question is to calculate the cash paid for merchandise by Worldwide Corp. in…
Q: The managers of Vernon Cabins are considering different pricing strategies for year 2. Under the…
A: Required A: Budgeted Income Statement for "High Price" StrategySales Revenue Calculation:To…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Step 1: Introduction to segment reportingSegment reporting refers to the process of identifying and…
Q: Assume a company incurs $192,000 in customer service salaries. The employees in the Customer Service…
A: Allocation for New Account Setup = Total Salaries × Percentage of Time on New Account Setup= 192,000…
Q: The following are the balance, receipts and issues of stocks for Tamapo's inventory for the month of…
A: AVCO (Average Cost) method: Step 1. Calculate the Total Cost of Goods Available for SaleOpening…
Step by step
Solved in 2 steps
- 1. The following CVP income statements are available for ABC Company and XYZ Company. АВС Сompany XYZ Company CVP I/S for 2020 CVP I/S for 2020 Sales $500,000 300,000 200,000 180,000 $500,000 180,000 320,000 300,000 $ 20,000 Variable costs Contribution margin Fixed costs Operating income $ 20,000 (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without preparing income statement. (Use DOL)The GAAP income statement for Carla Vista Company for the year ended December 31, 2022,s shows sale $930,000, cost of good sold $555,000, and operating expenses $235,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.The GAAP income statement for Wildhorse Company for the year ended December 31, 2022, shows sales $950,000, cost of goods sold $595,000, and operating expenses $165,000. Assuming all costs and expenses are 80% variable and 20% fixed, prepare a CVP income statement through contribution margin. Sales Variable Expenses Contribution Margin Fixed Expenses Net Income /(Loss) LA PACE COMPANY CVP Income Statement tA LA 950000
- 1. The following CVP income statements are available for ABC Company and XYZ Company. Sales Variable costs Contribution margin Fixed costs Operating income ABC Company CVP I/S for 2020 $500,000 300,000 200,000 180,000 $ 20,000 XYZ Company CVP I/S for 2020 $500,000 180,000 320,000 300,000 $ 20,000 med m (a) Compute the break-even point in dollars and the margin of safety ratio for each w ww w w w w h m w m ww m company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, each a CVP income statement for w w w w ww w www w w m wm company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without w w w w ww med m www S WInoul preparing income statement. (Use DOL) nea ww wA company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/2019The GAAP income statement for Pace Company for the year ended December 31, 2022, shows sales $900,000, cost of goods sold $600,000, and operating expenses $200,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
- A U Ltd manufactures and sells a single product, the company's sales and expenses for themonth of January 2021 were as follows:Total (Kshs)Value per unit (Kshs)Sales1.200.0080.00Less: Variable expenses840.0056.00Contribution360.0024.00Less: Fixed expenses300.00Net income60.00Required:What is the monthly breakeven point in units and in shillings?What is the total contribution margin at breakeven point?How many units would be sold each month to carn a minimum target net income ofkshs. 36.000?(iv)Using the original data, compute a company's margin of safety in both shilling and in percentage termsWhat is the contribution margin ratio, if the monthly sales increase by Kshs 16,000?Shalom Company had sales of P1,500,000 for the first quarter of 2022. During the period, the company had the following costs: Cost of goods sold Selling expenses Administrative expenses Fixed 230,000 200,000 160,000 Variable 320,000 170,000 110,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Words must be in capital letters. Contribution margin Contribution margin ratio Operating income If Shalom Company used the same cost structure for cost-volume-profit analysis and sold 10,000 units in the second quarter of 2022, did the company earn a profit? Yes or No?The CVP income statement shown below are available for ABC Company and DEF Company. ABC Company. DEF Company. Sales revenue Php 600,000 Php 600,000 Variable cost 320,000 120,000 Contribution margin 280,000 480,000 Fixed cost 180,000 380,000 Net income Php 100,000 Php 100,000 Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.
- Consider the following Information for the business Harry's Vintage Records. Actuals from the year ended 31st December 2021; Total Sales Revenue Total Fixed Costs $380,000 $90,000 0.20 Contribution Margin Ratio Calculate Harry's profit or loss in 2021 Select one: O a. (13,000) O b. 11,000 c. 12,000 d. (14,000)Question 3: Sobar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Variable Costs 225000 240000 Year 2019 90000 | 2020 120000 Calculate: a) P/V ratio, b) B.E.P.Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs Year 2019 | 2020 Variable Costs 225000 240000 405000 90000 450000 120000 Calculate: a) P/V ratio, b) B.E.P. 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.