Reference no: EM132705878
Question - Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows:
Sales $540,000
Variable expenses 360,000
Contribution margin 180,000
Fixed expenses 120,000
Net operating income $60,000
The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories.
Required -
a. Given the present situation, compute 1. The break-even sales in kilograms. 2. The break-even sales in dollars. 3. The sales in kilograms that would be required to produce net operating income of $90,000. 4. The margin of safety in dollars.
b. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease. 1. Should the company choose the lease or the royalty plan? 2. Under the royalty plan compute break-even point in kilograms. 3. Under the royalty plan compute break-even point in dollars. 4. Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000.
Functions and the role of alco in managing banks
: Discuss in detail the make-up, functions and the role of ALCO in managing banks' assets and liabilities.
|
Make an income statement for the year ended april
: The capital of Harper Borg, owner, was $51,470 at May 1, 20Y4, How do you make an income statement for the year ended April 30, 20Y5
|
How has the federal government responded
: How has the federal government responded to possible terrorist attacks (mitigation) where civil liberties have not been endangered?
|
What barriers to implementing electronic health records
: What are two advantages and two disadvantages of electronic health records? What is meaningful use? What are the barriers to implementing an EHR system.
|
Compute break-even point in kilograms
: An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Compute break-even point in kilograms
|
Describe the strategic management process
: Describe the strategic management process. What does it mean to manage strategically?
|
Define managed care
: Define managed care and discuss the four major goals of managed care and how they play a role in the health care system. Explain in detail
|
Prepare the necessary journal entries for the years ending
: Estimated future net cash flows from the trade name are $62,000 on January 4, 2018. Prepare the necessary journal entries for the years ending
|
How federal government respond to possible terrorist attack
: Can a balanced policy be implemented regarding critical infrastructure without eroding privacy, freedom of information or other civil liberties?
|