Reference no: EM131294979
1) Analysis of Hair Care Company’s citrus hair conditioner reveals that it is losing $5,000 annually. The company sells 5,000 units of citrus hair conditioner each year at $10 per unit. Variable costs are $6 per unit. None of the company’s fixed costs would be saved if the citrus hair conditioner were eliminated. What would be the increase or decrease in company net income if citrus hair condition were eliminated?
2) The luggage department of Sampson Company has revenues of $1,000,000; variable expenses of $250,000; direct fixed costs of $500,000; and allocated, indirect fixed costs of $300,000 in an average year. If the company eliminates this department, what would be the effect on net income?
3) Gopherit Corporation currently is manufacturing 40,000 units per year of a part used in its final product. The cost of producing this part is $50 per unit. The variable portion of this cost consists of direct materials of $25, direct labor of $15, and variable manufacturing overhead of $3. The company could earn $100,000 per year from the space now used to manufacture this part. Assuming equal quality and availability, what is the maximum price per unit that Gopherit Corporation should pay to buy the part rather than make it? (The total fixed costs would not be affected by this decision.)
The straight-line depreciation method would be used
: Lamar Company is studying a project that would have an eight year life and require a $1,600,000 investment in equipment. At the end of the eight years, the project would terminate and the equipment would have no salvage value. The straight-line depre..
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Complete the company cash budget
: Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $22,000. Budgeted cash receipts total $101,000 and budgeted cash disbursements total $98,000. The desired ending cash balance is $70,000. Complete the company's ..
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Cash disbursement for selling and administrative expenses
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Catering uses two measures of activity-jobs and meals
: Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $620 per month plus $111 per job plus $27 per meal. A typical job involves serving a..
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Analysis of hair care company citrus hair conditioner reveal
: Analysis of Hair Care Company’s citrus hair conditioner reveals that it is losing $5,000 annually. The company sells 5,000 units of citrus hair conditioner each year at $10 per unit. Variable costs are $6 per unit. None of the company’s fixed costs w..
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What is the non controlling interests share of income
: Royal Group has owned sixty percent of the outstanding shares of Durban for a number of years. Durban reported net income for 2011 of $240,000. What is the non controlling interest's share of Durban's income in 2011? Prepare the 2011 consolidation en..
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Off method records uncollectibleminus-account ?expense
: The direct writeminus−off method records Uncollectibleminus−Account ?Expense. n quickbooks, to comment on a report, you must ___.
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Prepare the journal entries for the original purchase
: On September 12, 2,000 shares of Aspen Company are acquired at a price of $50 per share plus a $200 brokerage fee. On October 15, a $0.50-per-share dividend was received on the Aspen Company stock. Prepare the journal entries for the original purchas..
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Stockholders equity total liabilities-stockholders equity
: Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: Hillyard Company Balance Sheet March 31 Asse..
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