User Account

All Pages

Compute the margin of safety

Assignment Help Accounting Basics
Reference no: EM131821924

Assume that you are planning to sell badges at the forthcoming Show at Sh.9 each. The badges cost Sh.5 to produce and you incur Sh.2000 to rent a booth in the Show ground.

Required:

a) Compute the breakeven point

b) Compute the margin of safety

c) Compute the number of units that must be sold to earn a before tax profit of 20%

d) Compute the number of units that must be sold to earn an after tax profit of Sh.1640, assuming that the tax rate is 30%.

Reference no: EM131821924

Questions Cloud

Real progress and progress traps : What is the difference between ' real progress ' and 'progress traps' according to Wright? Why does he refer to civilization as a 'pyramid scheme'?
What are some factors that would affect the royalty rate : What are some factors that would affect the royalty rate? What would you want to know that would assist you in determining damages?
How should the payments be characterized : How should the payments be characterized (e.g., on lease documents) to minimize Rachel's current tax liability
Prepare income statements based on standard variable costing : Absorption and Variable Costing Assume the same facts as in the preceding problem. In addition, consider the following actual data for 20X1.
Compute the margin of safety : Compute the breakeven point, Compute the margin of safety
What threat capabilities do the two organizations possess : What is each of the organizations' center of gravity (critical vulnerability that when destroyed or disabled makes the organization ineffective)?
Is organized crime evolving into a conventional business : Is organized crime evolving into a conventional business model style of operations? Why or why not?
Determine the inventories direct labor costs : Rockhampton, Inc. applies factory overhead based on direct labor costs. Determine the inventories direct labor costs and its overhead costs
Calculate the proper fixed-overhead rate per unit : Expected production activity is expressed as 7,500 standard direct-labor hours per month. Fixed overhead is expected to be $60,000 per month.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Xyz manufacturing company suffered major losses in a fire

xyz manufacturing company suffered major losses in a fire on december 18 2009. in addition to destroying several

  Aber company manufactures one product on december 31 2011

the following information is available from jansens inventory records for product xnbspnbspnbspnbspnbsp unitsunit

  Determine the present value

Determine the present value, assuming that John desires a 10% rate of return on this investment.

  Calculate moving average cost

Calculate moving average cost at January 1, 8, 10 & 15.

  Izabelle and marta are forming a partnership izabelle will

izabelle and marta are forming a partnership. izabelle will invest a piece of equipment with a book value of 7500 and a

  Determine tax effect on unrealized gains and losses

On December 1, 2017 DeeDee paid ABC Advertising $16,000 for a four month campaign of advertising services. Equal services are provided each month.

  Information available and the percentage-of-sales method

Prepare a pro-forma statement of cash flows using the latest information available and the percentage-of-sales method, ratio analysis, or vertical or horizontal analysis to calculate the future profit or loss (i.e., create a fictitious scenario fo..

  Aaron corporation is projecting a cash balance of 30000 in

aaron corporation is projecting a cash balance of 30000 in its december 31 2013 balance sheet. aarons schedule of

  Prepare the journal entries for each of the dates

Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings

  What is the impact of highly leveraged deals

What is the impact of highly leveraged deals on the portfolio companies ability to compete in their industries?

  Quarterly financial statements are prepared

Everett Co. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.

  Prepare a report showing the customer margin on sales to

Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates. Prepare..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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