Reference no: EM13849384
Question 1:
The Chris Corporation sells only one product. The following is budgeted information for that product:
|
Annual production and sales capacity (units)
|
100,000
|
|
Budgeted selling price
|
$25 per unit
|
|
Variable cost of goods sold
|
$10 per unit
|
|
Fixed manufacturing costs
|
$200,000
|
|
Variable selling and administrative costs
|
$5 per unit
|
|
Fixed selling and administrative costs
|
$160,000
|
Chris's corporate tax rate is 40%.
a) How many units does Chris need to sell to breakeven?
b) How much revenue does Chris need to generate to breakeven?
c) How many units does Chris need to sell to earn an operating profit (before taxes) of $240,000?
d) How much revenue does Chris need to generate to earn net income (after taxes) of $180,000?
e) Assume Chris is currently producing and selling 54,000 units. By what percentage will operating income change if sales increase by 15% from 54,000 units? Be sure to provide figures to justify your answer.
f) Assume Chris is currently producing and selling 54,000 units. By what percentage will operating income change if sales decrease by 10% from 54,000 units? Be sure to provide figures to justify your answer.
Question #2
A production company is planning to sell tickets to a show for $50 each. It budgets variable costs to be $5 per attendee. Total fixed costs are estimated to be $50,000. The theatre can accommodate up to 1,000 people because of safety concerns. What should the production company do? Why? Be specific in your response.
Question #3
The following is budgeted information for the Samantha Corporation:
|
Product 1
|
Product 2
|
|
Annual production & sales
|
60,000
|
40,000
|
|
Projected selling price
|
$24
|
$32
|
|
|
|
|
Direct Production Cost Information
|
|
|
|
Materials (per unit)
|
$6
|
$8
|
|
Direct Labor (per unit)
|
$4
|
$6
|
Additional information:
- Selling & administrative costs (a mixed cost) are budgeted to be $520,000 at the production and sales listed above. The variable component is $4 per unit (same for each product).
- Manufacturing overhead costs (a mixed cost) are budgeted to be $490,000 at the production and sales listed above. The fixed component is $190,000. Each product uses the same amount of variable manufacturing overhead per unit.
Assuming the budgeted sales mix remains intact, how many units of each product does Samantha need to sell in order to break even?
|
Prepare adjusted trial balance for gordon construction
: Prepare adjusted trial balance for Gordon Construction at June 30, 20xx.
|
|
Major organizational parts of the authority
: What are the major organizational parts of the authority (placed in bold)? Compare your answer in (a) to the major organizational parts of an IFRIC or SIC. Are (a) and (b) for the most part, the same? If yes, how so? If not, how do they differ?
|
|
What is the most common form of online communication
: What is the most common form of online communication today? Why does Ubell state it may not be the most effective for collaboration? Do you agree
|
|
Determine product capabilities
: Search the Web to find information on biometric devices - Create a table, grouping devices into categories, such as fingerprint readers, eye readers, etc.
|
|
Operating income change
: Assume Chris is currently producing and selling 54,000 units. By what percentage will operating income change if sales increase by 15% from 54,000 units? Be sure to provide figures to justify your answer.
|
|
Write an editorial considering
: Pretend that you are an editorialist, and write an editorial considering whether or not you believe that monopolies should be illegal and defend your argument using pertinent economic theory.
|
|
Ethics and values reflection paper
: Ethics and values reflection paper- Erik Erikson, one of the most influential psychoanalysts of the 20th century, proposed an eightstage theory of growth as a model for how we live, think, learn and change throughout our lifetimes
|
|
Difficult for companie to establish themselves as monopolies
: How has the World Wide Web allowed supported the establishment and functioning of these businesses - Do you think that the World Wide Web has made it easier or more difficult to start new businesses? Explain your answer.
|
|
Matlab command that will create a ten-element column vector
: MatLab command that will create a ten-element column vector named
|