Reference no: EM13788003
Jeny is studying Finance at University. To complete the Finance degree she has to take a basic income tax course. Because Jeny does not intend to be a tax expert she considers the course to be a waste of his time. Discuss the merits of Jeny's opinion, that is, whether or not she can benefit from a tax course and how. Cost-Based Pricing and Markups with Variable Costs
Compute Services provides computerized inventory consulting. The office and computer expenses are $400,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $20 of variable costs.
(a) If the company desires a profit of $140,000, what should it charge per hour?
$Answer
(b) What is the markup on variable costs if the desired profit is $160,000?
Answer %
(c) If the desired profit is $160,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?
Markup to cover unassigned costs Answer %
Markup to cover desired profits Answer %
|
Under the new revenue recognition principle ifrs
: On January 1, 2014, Gordon Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange or $3,000. The contract requires delivery of the base first but states that payment for the base will not be ma..
|
|
Compute the current break-even sales
: Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440. Compute the current break-even sales
|
|
Target costing
: Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $700 each. An independent catalog compan..
|
|
Product pricing-two products
: Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs. What price should Quality Data charge for each disk pack if ..
|
|
Cost-based pricing and markups with variable costs
: Jeny is studying Finance at University. To complete the Finance degree she has to take a basic income tax course. Because Jeny does not intend to be a tax expert she considers the course to be a waste of his time. What is the markup on variable costs..
|
|
Equivalent units of conversion costs
: The Bottling Department of Rocky Springs Beverage Company had 3,600 ounces in beginning work in process inventory (80% complete). During the period, 30,100 ounces were completed. The ending work in process inventory was 1,800 ounces (50% complete). W..
|
|
Ending work in process inventory
: The Bottling Department of Rocky Springs Beverage Company had 2,400 ounces in beginning work in process inventory (50% complete). During the period, 40,300 ounces were completed. The ending work in process inventory was 2,000 ounces (60% complete). W..
|
|
Equivalent production units
: Equivalent production units, usually are determined for
|
|
Total variable costs-fixed costs-total revenues
: Acorn Corp. had total variable costs of $175,972, total fixed costs of $170,982, and total revenues of $303,400. Compute the required sales in dollars to break even.
|