User Account

All Pages

How many baby hampers will Micol Co Ltd need to sell

Assignment Help Managerial Accounting
Reference no: EM133004794

Question - Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company's monthly fixed expenses are $200,000.

Required -

a) What is the company's break-even point in units?

b) What is the company's margin of safety in dollars, assume sales is expected to be $800,000?

c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000?

d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd.

e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?

Reference no: EM133004794

Questions Cloud

Estimate value per share : Procter and Gamble (PG) paid an annual dividend of $2.87 in 2018. You expect PG to increase its dividends by 8% per year for the next five years (through 2023),
What the overhead applied to job must have been : Treetops worked on four jobs during first year, If Treetops applies overhead at 150% of direct labour cost, the overhead applied to job no. 403 must have been
What is the probability a person : In a class of 18 students there are 11 math majors and 7 computer science majors. Four students are randomly picked to prepare a demonstration on using a graphi
Determine the causes of the variances and hypothesize on : Determine the causes of the variances and hypothesize on what caused the variances. Based on your analysis, recommend actions
How many baby hampers will Micol Co Ltd need to sell : How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000
What the cost of the ending work in process for copley : What the cost of the ending work in process is? Copley uses a weighted-average process-costing system. All materials are added at the beginning
How many puts would the investor need to buy : How many puts would the investor need to buy (rounded to the nearest whole number)? All contracts have a value of $25 per index point
What is the total manufacturing cost of the job : It requires $2000 in direct material cost,$5000 in direct labor cost and 40 machines hours. What is the total manufacturing cost of this job?
What the value of the finished goods inventory is : What the value of the finished goods inventory after proration of $3000 in underallocated overheads is? Using proration based on the allocation overhead amount

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What factors could possibly explain this shift

To get an overall picture of each company's capital structure it is helpful to see a chart that summarizes the company's capital structure over the past decade.

  What would be recorded by Danzig as a gain

The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded by Danzig as a gain

  Calculate the depreciation expense for the year

Management is considering depreciating the ties using the group method for 2011. Calculate the depreciation expense for the year on the ties using the group method and compute the group depreciation rate for 2011.

  Compute correct forward rate implied by the interest rates

Compute the correct forward rate implied by the interest rates. You as a real estate investor are considering adding additional studio apartments

  What is the payback period for a project

What is the payback period for a project that has an initial investment of $117,000 and $10,000 net cash inflow in the first year

  Journalize the entry to record the payment of the January

Journalize the entry to record the payment of the January 6 wages assuming that a reversing entry was not made on January 1

  Prepare the journal entries using the straight-line method

Prepare the journal entries to record the sale of the bonds, any adjusting entries, and the payment of the interest through December 31, 2003, using the effective interest method.

  Determine contribution margin per unit for each type of vase

Determine the contribution margin per unit for each type of vase. Determine the contribution margin per machine hour for each type of vase.

  What happens to the plant on the completion of the contract

Where a plant has been specially purchased for a particular contract and will be exhausted at site Contract Account should be debited with the cost of the plant, what happens to the plant on the completion of the contract

  Find what price were the updated versions sold

If Hi-Tech updates the computers and sells them, net income will increase by $9,000. At what price were the updated versions sold?

  Prepare a list a report about in managerial accounting

Prepare a List a report or activity you learned about in Managerial Accounting which has impacted a company, either positively or negatively.

  What is the payback period on project a

a. What is the payback period on Project A, B and C? b. Calculate the NPV for projects A, B, and C (oportunity cost of capital 12%)

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