Apple inc informs us that the fixed costs to produce ipods

Reference no: EM13596768

Apple, Inc. informs us that the Fixed Costs to produce iPods are $35,000 per month. Fixed Costs to produce the Macintosh computers are also $35,000 per month. iPods sell for $300 each and have a variable cost of $60. Macs sell for $3,000 and have a variable cost of $800.

Calculate the following for each product:
(a) Contribution to overhead and profit (in dollars per unit sold)
(b) Contribution percentage (as a percentage of the selling price)
(c) The number of units which must be sold in a month to break-even (revenues = total costs)
(d) The dollar amount of sales revenue at the break-even point

Using the financial statements you produced above, calculate the following ratios:
1. Working Capital
2. Current Ratio
3. Quick Ratio (when using Accounts Receivable use the value NET of Allowance for Bad Debts)
4. A/R Turnover (assume beginning, ending, and average A/R are all the same)
5. Days' Sales in A/R (use 360 or 365, whichever you prefer)
6. Inventory Turnover (assume beginning, ending and average inventory are all the same)
7. Days' Sales in Inventory (use 360 or 365, whichever you prefer)
8. Debt to Equity Ratio (remember - only long-term debt)
9. Gross Margin Percentage
10. Net Income Percentage
11. Earnings Per Share (assume average # of common shares outstanding for the year is 1,500)

Reference no: EM13596768

Questions Cloud

Preferred stock cash dividends are based on the par value : preferred stock cash dividends are based on the par value and the stated percentage. in this case each preferred share

Assume that ibm leased equipment that was carried at a cost : assume that ibm leased equipment that was carried at a cost of 150000 to sharon swander company. the term of the lease

Callaway golf co leases telecommunication equipment assume : callaway golf co. leases telecommunication equipment. assume the following data for equipment leased from photon

On april 1 2010 backspace corporation issued 2000000 6 : on april 1 2010 backspace corporation issued 2000000 6 10-year bonds at 95. the bonds pay interest each october 1 and

Apple inc informs us that the fixed costs to produce ipods : apple inc. informs us that the fixed costs to produce ipods are 35000 per month. fixed costs to produce the macintosh

You plan to have 1000000 in your retirement account when : you plan to have 1000000 in your retirement account when you retire in 40 years. assume an average annual rate of

At the end of 2009 tatum co has accounts receivable of : at the end of 2009 tatum co. has accounts receivable of 739773 and an allowance for doubtful accounts of 31583. on

When baker tested the sample eight errors were discovered : baker cpa was engaged to audit mill companys financial statements for the year ended september 30 20x1. after obtaining

Machine b the recorded cost of this machine was 160000 pele : on january 1 2008 pele company purchased the following two machines for use in its production process.machine a the

User Account

All Pages