Break-even point in unit sales using the equation method

Assignment Help Financial Accounting
Reference no: EM13777520

Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60 per unit. The company’s monthly fixed expense is $40,000.

Compute for the company’s break-even point in unit sales using the equation method.

Compute for the company’s break-even point in sales dollars using the equation method and the CM ratio.

Reference no: EM13777520

Questions Cloud

Sales value at split off method : Illinois Soy Products (ISP) buys soybeans and processes them into other soy products. Each ton of soybeans that ISP purchases for $340 can be converted for an additional $190 into 575 pounds of soy meal and 160 gallons of soy oil. A pound of soy meal..
Equity investment transactions : The following equity investment transactions were completed by Reynolds company in 2014: Feb 8: purchased 2,400 shares of Type Company for a price of $62 per share plus a brokerage commission of $120. Journalize the entries for these transactions
Cost method-journalize the entries for purchase of stock : On march 10, fly corporation acquired 6,000 shares of the 140,000 outstanding shares of Dickson co., common stock at $32 plus commission charges of $240. On july 23, a cash dividend of $1.40 per share was received. On November 22, 2,400 shares were s..
Determine the interest earned : On April 1, 2014 Rizzo Company purchased $80,000 of 4.5%, 20 year energizer company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on March 1 and September 1.
Break-even point in unit sales using the equation method : Liman Corporation has a single product whose selling price is $140 and whose variable expense is $60 per unit. The company’s monthly fixed expense is $40,000. Compute for the company’s break-even point in unit sales using the equation method.
Bond investment transactions were completed : The following bond investment transactions were completed during 2014 by starks company: Jan 31: purchased 75, $1,000 government bonds at 100 plus 30 days' accrued interest. The bonds pay 6% annual interest on July 1 and January 1.
Affects cash during a period : Which one of the following affects cash during a period?
The initial acquisition of the pluto corp bonds : Mars investments acquired $150,000 of pluto corp., 8% bonds at their face amount on September 1, 2014. the bonds pay interest on September 1 and march 1. on march 1, 2015 mars sold $75,000 of pluto corp. bonds at 102.
Return on investment and residual income : Solano Company has sales of $880,000, cost of goods sold of $560,000, other operating expenses of 45,000, average invested assets of $2,550,000, and a hurdle rate of 12 percent. Company sales and cost of goods sold increase by 40 percent. (Do not rou..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compare earnings per share

Southland Industries - Compare Earnings per share (EPS) for the given levels of EBIT

  1 in order to restructure some of its debt general motors

1. in order to restructure some of its debt general motors decided to pay off one of its short-term loans.nbsp if the

  Prepare the slides and notes for presentation

Prepare the slides and notes for your presentation following the format below. Your presentation should be limited to a maximum of five slides.

  Calculate e&p for the year

Cayenne Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago. Calculate E&P for the year and determine Marty's tax consequences, assuming his basis is $65,000

  Explain about ingram-lee model

Assess how closely the company adheres to the Ingram-Lee model in absolute and relative terms: If income increases, does cash flow increase at a lesser rate? Does investing have net outflows and financing have net cash inflows?

  Building a computer music library will go forward

The first letter is to be sent to Mr. Bernard Olsen, 155 Main Street, Elmsford, NY  10523 - Having reviewed more then 50 applications for our field representative position, you are our top choice for this exciting opportunity to join our excellent..

  Prepare dated journal entries to record the transactions

Calculate Dahl's 20X6 consolidated net income and identify the amount attributable to Dahl's shareholders and to the non-controlling interest and prepare dated journal entries to record the transactions shown above.

  Opportunities for influencing the outcome of reported

Opportunities for influencing the outcome of reported earnings. Please elaborate a. accounting choices, estimates and judgments b. changes in accounting methods and assumptions c. discretionary expenditures d. revenue and expenses

  What is dybvig cost of equity capital

The Dybvig Corporation's common stock has a beta of 1.15. If the risk-rate is 4.5 percent and the expected return on the market is 11 percent, what is Dybvig cost of equity capital?

  Determined with absorption costing

Determined with absorption costing and direct costing and When the high-low method of estimating a cost behavior pattern

  Evaluate the company margin of safety

Evaluate the company margin of safety and Compute the company margin of safety as a percentage of its sales.

  Calculate inventory turnover since they are not manufacturer

You may not use firms that do not file 10-K financial statements such as certain foreign firms that use IFRS. You must use firms that file in accordance with U.S. GAAP.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd