G httpChapter ReviewMy...Sales priceContribution margin ratioFixed costsTra..Vernon Company reported the following data regarding the product it sells:a. Break-even point in dollarsa. Break-even point in unitsb. Sales in dollarsb. Sales in unitsc. Break-even point in dollarsc. Break-even point in units$60Man...$10%$216,000M Questio...RequiredUse the contribution margin ratio approach and consider each requirement separately.b Ans...2,160,00036,000Bes...Saveda. What is the break-even point in dollars? In units?b. To obtain a profit of $54,000, what must the sales be in dollars? In units?c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units?USfron.

Contribution margin ratio: The proportion of sales revenue that contributes to covering fixed costs…

Answered: Vernon Company reported the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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Activity 2: Complete me! Directions: Fill in the needed data to complete the table below. Unit B.E.P in B.E.P in Selling Price per Unit Variable Cost per Unit Total Fixed Cost Contributio Units Pesos n Margin P19,500.00 P15.00 P13.00 P960.00 P18.00 P15.00 P24.00 P3.00 69 P34.00 P3.00 150 P27.00 P5.00 100 2. 3. 4.
PA1. 10.1 When prices are rising (inflation), which costing method would produce thehighestvalue for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Number of Units Cost per Unit $6,000 7,000 7,500 Purchase 2 Purchase 3 Purchase 4 Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost Normal profit margin Selling price $215 $36 $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a.
TB Problem 12-90 Midtown Retail operates a retail store... Midtown Retail operates a retail store in Kansas City, MO., and St. Louis, MO. The following information relates to the Kansas City facility: • The store sold 61,800 units at $34.00 each, after having purchased the units from various suppliers for $26.50. Kansas City salespeople are paid a 1% commission based on gross sales dollars. • Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $70,000 for the year. Local property taxes amounted to $30,500. • The sales manager's $81,000 salarv is set by Kansas City's store manager. In contrast, the store manager's $150,000 salary is determined by Midtown's vice president. • Kansas City incurred $14,800 of other noncontrollable costs. • Nontraceable (common) corporate overhead totaled $84,000. ok nt ences Midtown's corporate headquarters is located in St. Louis, and the company uses responsibility accounting to evaluate performance. Required:…
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Q.3.5 Complete the following table by filling in the missing amounts: (6) Mark-up on Cost Price Profit Selling Price Cost (excluding VAT) (excluding VAT) (excluding VAT) 25% 1 000 100% 6 000 1 500 2 500
Home CengageNOWv2| Online teachin X akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook | Show Me How Print Item Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000. a. Break-even point in sales units X units b. Break-even point in sales units required for the company to ach ve a target profit of $400 X units Feedback Check My Work a. Unit sales price minus unit variable costs equals unit contribution margin. Fixed costs divided by unit contribution margin = break-even point in units. b (Fixed costs Target profit) divided by unit contribution margin = sales units.
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Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
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