Number of cartons of calendars that team spirit calendars

Assignment Help Financial Accounting

Reference no: EM13795253

Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expense, 68% is cost of goods sold, while the remaining 32% relates to variable operating expenses. The company sells each carton of calendars for $16.50.

Requirements:

1) Compute the number of cartons of calendars that Team Spirit Calendars must sell each month to breakeven.

2) Compute the dollar amount of monthly sales that the company needs in order to earn $308,000 in operating income (round the contribution margin ratio to two decimal places).

3) Prepare the company’s contribution margin income statement for June for sales of 450,000 cartons of calendars.

Reference no: EM13795253

Questions Cloud

Calculate prior service cost at the inception of the plan : On January 1, x1, Brown Corp initiated a non-contributory defined benefit pension plan for all six employees in its word processing department. The plan benefit formula provides that each year of service earns each employee an annual retirement benef..

Cost budget for project to meet target manufacturing cost : As a project manager on a product development team for a new line of iPads for the hearing impaired, you are asked to create a product development plan that addressed items (a) through (f) below. Develop an initial cost budget for the project to meet..

Using the sum-of-the-years-digits method : Judds Company purchased a new plant asset on April 1, 2014, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year. Compute the depreciation for this as..

Prepare the entry to correct the prior years depreciation : Machinery purchased for $60,000 by Tom Brady Co. in 2010 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Prepare the entry to correct the prior years’ depreciation, if necessary. Prepare the..

Number of cartons of calendars that team spirit calendars : Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Compute the number of cartons of calendars that Team Spirit Calendars must s..

Prepare the journal entry to record the impairment : The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 3..

Compute the equivalent units of production-material costs : Spectre Chemicals produces Canovic in a two department process. Information on the two departments for March and April, 2014 are as follows: Compute the Equivalent Units of Production, Material costs, and Conversion costs for each department for Marc..

The control environment reflects the companys attitude : The control environment reflects the company's attitude, awareness, and actions of management and the board concerning the importance of control and how it is used. This is very relevant to an auditor's consideration of inventories and should include..

User Account

All Pages