How many small-size products must the shop sell

Assignment Help Accounting Basics
Reference no: EM132733132

Questions -

Q1. Laurie's shop is selling products of three sizes: small, medium, and large. The sale mix is 5:3:2. Small-size products are sold at $10 per unit and cost $4 per unit; medium-size products are sold at $4 per unit and cost $1 per unit; and large-size products are sold at $3.50 per unit and cost $2 per unit. The shop's fixed costs are $326,000 every year, and the income tax rate, t, is 20%. How many small-size products must the shop sell at the breakeven point?

Q2. Kathy Inc. has the following cost information: Variable costs are $5 per unit, and total fixed costs for the year are $60,000. The unit selling price is $7.

If the income tax rate is 50%, how many units should Kathy Co. sell to make an after-tax profit (πA) of $22,000?

Q3. Johnson is considering a machine that costs $432,000 and would reduce the amount of time needed to load the waste. Loading the waste by hand into a truck costs labor of $40 per load. The machine would reduce labor cost to $5 per load. Assume that the average loads per year are 10,800. How many years would it take to recover the cost of the new machine?

Reference no: EM132733132

Questions Cloud

What is the total Interest Income : The bonds have a par of $10,000, pay interest at a 5% annual rate and have 5 years until maturity. What is the total Interest Income
Heart and peripheral vascular system : Differences between the various causes of chest pain. Include the location, quality of pain, quantity of pain, chronology, associated manifestations,
What effect does destruction of cd4 : Specifically, what effect does destruction of CD4+ have on the body's mechanisms of immunity?
Compute the gross profit rate for november for crane company : Inventory, beginning-of-month, Sales revenue. Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.)
How many small-size products must the shop sell : The shop's fixed costs are $326,000 every year, and the income tax rate, t, is 20%. How many small-size products must the shop sell at the breakeven point
Discuss about importance of innovation within the workplace : This week you have learned about the importance of innovation within the workplace. The techniques learned this week will play a vital role in your growth.
Learning to your personal and professional life : What do you already know about health, safety, and nutrition? How might you apply this learning to your personal and professional life?
What are journal entries relating to givemgreef investment : Find what are the journal entries relating to Givemgreef's investment in Nelson during the years 2021-2023 with explanations
Why is there a need for mitosis and meiosis : Why is there a need for mitosis and meiosis? Are there characteristics that make them redundant? Explain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What role does each step play in the success of a business

Identify the steps of the accounting cycle and provide a description of each step. What role does each step play in the success of a business

  Unethical behavior on the profitability of the company

What was the affect of unethical behavior on the profitability of the company?

  Determine the amount of supplies used

Restaurant had 8,480 supplies on hand at the beginning of April. Determine the amount of supplies used and journalize the adjusting entry

  Determine the total cash dividend paid during the four years

Determine the total cash dividends paid during four years with preferred stock as cumulative and then calculate it again with preferred stock as non-cumulative.

  What is Ed at-risk amount at the end of the year

He has taxable income for the current year of $2,000 from the oil partnership and withdraws $10,000. What is Ed's at-risk amount at the end of the year

  Prepare the selling and administrative expense budget

The budgeted fixed selling and administrative expense is $35,750 per month, Prepare the selling and administrative expense budget for January

  What is res estimated warranty payable

Roy Electric (RE) owed Estimated Warranty Payable of $1, 200 at the end of 2015. What is RE's Estimated Warranty Payable at the end of 2016?

  How is the organization impacted by factor endowments

How is your organization impacted by demand conditions? In other words, how is your company developed compared to other competitors?

  During the month of august direct labor cost totaled 13000

during the month of august direct labor cost totaled 13000 anddirect labor cost was 20 of prime cost. if total

  Paying a hospital for the medical expenses of a

steve is considering the following actions. explain to him which actions will constitute gifts for gift tax

  Prepare a partial income statement for diamond

Prepare a partial income statement for Diamond in the Marigold Group. The income statement should begin with income from continuing operations

  Discuss the acquisition bmis book value

JDE stock had a market value of $14.90 per share and there was no control premium

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