Reference no: EM13919037
Mozena Corporation has collected the following information after its first year of sales. Sales were $1,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $511,000; direct labor $290,000; administrative expenses $270,000 (20% variable and 80% fixed); manufacturing overhead $350,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
Contribution margin for current year = $300,000
Contribution margin for projected year = $330,000
Fixed Costs = $471,000
Break-even point in units = 157,000 units
Break-even point in dollars = $
The company has a target net income of $200,000. What is the required sales in dollars for the company to meet its target? (Round answer to 0 decimal places, e.g. 1,225.)
Sales dollars required for target net income = $3,355,000
I need help with the last part:
If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio? (Round answer to 1 decimal place, e.g. 10.5%.)
Margin of safety ratio = ____%
|
Record the deferral and the related december
: On October 1, 2013, Josh Smith, attorney, accepted an $10,800 cash advance from his client, James Company, for services to be performed over the next six months.
|
|
Property taxes incurred
: Property taxes incurred but not paid or recorded amount to $540. c. Legal fees of $5,000 were collected in advance. By year end, 60 percent were still unearned. d. Prepaid Insurance had a $1,600 debit balance prior to adjustment.
|
|
Find shortest route from gormans office to construction site
: Find the shortest route from Gorman's office to the construction site at node 6 if the objective is to minimize travel time rather than distance.
|
|
How to simplify using quotient and remainder methods
: Find the two times when the displacement and determine the time t for the oscillation to reach a velocity - Show how to simplify the using quotient and remainder methods
|
|
Administrative expenses
: Mozena Corporation has collected the following information after its first year of sales. Sales were $1,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $511,000; direct labor $290,000; administrative..
|
|
Evaluate the benefits and drawbacks of hamel & prahalad
: Evaluate the benefits and drawbacks of Hamel & Prahalad's (1990) concept of Core Competence and examine any relationship to Miller's (1992) Icarus Paradox
|
|
Steps of the four-step hypothesis
: Consider why your research question is important. Outline how you would use each of the steps of the four-step hypothesis test process to answer the research question Think about how using a t test could help your analysis. How is the ..
|
|
Prepare a forecast of the income statement, balance sheet
: Estimate the value of your company's common stock per share using the valuation analysis and procedures described in the Comprehensive Case.
|
|
Contributes to its success in a global economy
: Suggest the key elements of Starbucks' organizational culture that contributes to its success in a global economy. Indicate management's role with creating and sustaining the organizational culture.
|