What volume of sales must be earned if kiltop wants to earn

Assignment Help Accounting Basics
Reference no: EM13566587

Kiltop Company produces a toy dart gun. The projected income statement for the coming year follows:

Sales                                                                 $ 480,000
Less: Variable costs            ( 249,600)
Contribution margin            $ 230,400
Less: Fixed costs                                              ( 180,000)
Operating income                 $   50,400

a. Compute the contribution margin ratio for the toy gun.
b. How much revenue must Kiltop earn in order to breakeven?
c. What volume of sales must be earned if Kiltop wants to earn an after-tax income equal to 8% of sales? Assume that the tax rate is 34%.

Reference no: EM13566587

Questions Cloud

Yu have been provided with the following data d1 067 p0 : assume that you are a consultant to broske inc. and you have been provided with the following data d1 0.67 p0 27.50
Use this link to watch a video of president obama : httpconstitutioncenter.orgamoreperfectunionuse this link to watch a video of president obama delivering this address.
Price and yield an 8 percent semi annual coupon bond : price and yield an 8 percent semi annual coupon bond matures in 5 years. this bond has a face value of 1000 and a yield
Essayportfolio - apa format - 8 page double spaced paper : essayportfolio - apa format - 8 page double spaced paper with scholarly sources. the learner will complete the
What volume of sales must be earned if kiltop wants to earn : kiltop company produces a toy dart gun. the projected income statement for the coming year follows
Crunchy morsels inc manufactures and sells corn chips : crunchy morsels inc. manufactures and sells corn chips. currently crunchy produces only one type of corn chip. the
Clarion contractors completed the following transactions : clarion contractors completed the following transactions and events involving the purchase and operation of equipment
The bank account as a control device helps to protect cash : the bank account as a control device helps to protect cash. one of the requirements is to conduct periodic bank
Adjusting entries are required at the end of the period to : adjusting entries are required at the end of the period to ensure that accrual accounting principles are applied. the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Define advantages and disadvantages of the us gaap

What are the advantages and disadvantages of the US GAAP bright line approach versus the IFRS conceptual approach in determining the classification of a lease?

  If beginning and ending goods in process inventories are

if beginning and ending goods in process inventories are 5500 and 15500 respectively and cost of goods manufactured is

  What accounts are likely to be overstated or understated

Your client, a manufacturer of computer components has experienced slowing demand for its product. Recently, it cut back from three shifts a day to two shifts a day and the company has eliminated the backlog of orders that existed in prior years b..

  Prepare journal entries to record accrued payroll including

the following monthly data are taken from ramirez company at july 31 sales salaries 620000 office salaries 124000

  Prepare journal entries to record the sale, cash collections

Prepare journal entries to record the sale, cash collections, and recognition of gross profit (if appropriate) in 2010, 2011, and 2012.

  The 2013 income statement reported 6000 in depreciation

here are comparative balance sheets for doherty company.doherty company comparative balance sheets december 31

  Denominator level of activity affects the fixed portion

A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. The company's choice of the denominator level of activity affects the fixed portion of the pr..

  Financial statements for fiscal year

In the financial statements for its fiscal year ended December 31, Year 2, Investor should report a realized loss on disposal of the Investee Co. shares equal to:

  Calculate after tax cash inflow from the disposal

Silver Shades corporation disposes of a capital asset with an oringial cost of 115000 and accumulated depriciation of 62500 for a salvage price of 18000. Silver Shades tax rate is 30%. Calculate after tax cash inflow from the disposal of the capit..

  Purchase method for consolidation entries

Pacific has the following account balances as of Feb 1. Western pays $2,020,000 in cash. An additional $20,000 is paid in direct combination costs. For each of the following accounts, determine what balance will be included in a Feb 1 consolidatio..

  Credit card fee deductible

If paid the total amount owing of $6858 to ATO via my National Australia Bank Visa Card. A Credit card fee of $45 (equivalent to 0.0065%) was charged by the ATO in relation to this payment. Is this $45 credit card fee deductible?

  Effective rate of interest if loan is discounted

East Coase Cleaners borrows $10,000 for 90 days and pays $210 interest. What is the effective rate of interest if the loan is discounted?

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