Reference no: EM132500333
Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $64, and the Deluxe set sells for $79. The variable expenses associated with each set are given below.
Standard Deluxe
Variable production costs $ 17.00 $ 32.00
Sales commissions (17% of sales price) $ 10.88 $ 13.43
The company's fixed expenses each month are:
Advertising $ 107,000
Depreciation $ 22,300
Administrative $ 64,000
Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year.
For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below:
Standard Deluxe Total
April 4,200 2,200 6,400
May 1,200 5,200 6,400
Required:
Question 1: Prepare contribution format income statements for April.
Question 2: Prepare contribution format income statements for May.
Question 3: Compute the break-even point in dollar sales for April.
Question 4: Would the break-even point in May be higher or lower than the break-even point in April?
Discussion about the health care facility or service
: Select a health care facility or service (e.g., hospital, physician practice, long-term care facility, ambulance service, pharmacy, or skilled nursing facility)
|
What is the producer surplus of an individual firm
: Assuming that all of the firm's fixed costs are sunk, what is the producer surplus of an individual firm and what is the overall producer surplus for the market
|
How might you measure the iv
: How might you measure the IV? How might you measure the DV? For each, provide a precise operationalization and its associated level of measurement.
|
Market equilibrium price and quantity
: Consider the market for honey, which is in perfect competition. It costs $5 to make each jar of honey. The demand for honey is given by
|
Prepare contribution format income statements for may
: Compute the break-even point in dollar sales for April. Prepare contribution format income statements for April. Prepare contribution format income statements
|
Describe the economic rise of europe
: Describe the economic rise of Europe and its impact on the Americas and Africa. Regarding the English financial revolution: describe the creation of debt money.
|
Calculate the total cost of direct material
: How many equivalent units with respect to part HH887 would be represented in April's ending work-in-process inventory? Calculate total cost of direct material.
|
Discuss the welfare effects of government intervention
: Discuss the welfare effects of government intervention in the form of legislation that sets the minimum wage rate above equilibrium wage rate.
|
Compute the cash received from the sale of the equipment
: Compute the cash received from the sale of the equipment. Ford Company reports depreciation expense of $47,000 for Year 2. Also, equipment costing $162,000
|