Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000.
Question:
Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4.
Instructions
(a) Prepare a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.)
(b) Compute the break-even point in
(1) Units and
(2) Dollars.
(c) Compute the margin of safety in
(1) Dollars and
(2) As a ratio, assuming actual sales are $2 million.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
a b 1 Breakeven sales in units 4X 250X 600000 150X 6000...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted:
Students also viewed these Managerial Accounting questions
-
Glacial Company estimates that variable costs will be 58.8% of sales, and fixed costs will total $677,000. The selling price of the product is $5.10. Compute the break-even point in (1) units and (2)...
-
A company's normal selling price for its product is $29 per unit. However, due to market competition, the selling price has fallen to $24 per unit. This company's current inventory consists of 290...
-
Grissom Company estimates that variable costs will be 60% of sales, and fixed costs will total $800,000.The selling price of the product is $4. Instructions (a) Prepare a CVP graph, assuming maximum...
-
In Exercises use the Ratio Test to determine the convergence or divergence of the series. 00 n=1 n! n3n
-
If reviews provide less assurance than audits, and compilations provide no assurance, why is there a demand for these types of services?
-
Murtagh Co. is operating at its target capital structure with market values of $110 million in equity and $175 million in debt outstanding. Murtagh Co. plans to finance a new $32 million project...
-
What is a retention and why is it used in managing project work?
-
On April 1, DeDonder Travel Agency Inc. was established. These transactions were completed during the month. 1. Stockholders invested $30,000 cash in the company in exchange for common stock. 2. Paid...
-
Q1. Research the National quality standards and summarise three quality areas of the NQS that relates to consultation with children and environmental responsibility. Q2. Explain why children should...
-
Fultz and Hunter form a partnership on January 1, 2018, contributing $59,000 and $20,000, respectively. The partnership had net income of $164,000. Based on the partnership agreement, Fultz's share...
-
Cottonwood Company reports the following operating results for the month of August: sales $400,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the...
-
Oak Bucket Co., a manufacturer of wood buckets, had the following data for 2013: Sales ...............2,600 units Sales price ............$40 per unit Variable costs ..........$16 per unit Fixed...
-
At what temperature is the molar volume of an ideal gas equal to 22.4 L, if the pressure of the gas is 2.5 atm?
-
A CUSMA Certificate of Origin has now been provided and the importer requests that you submit a refund request on their behalf. Using the information from the CASE ONE B3 that you may have already...
-
The owner of a paper manufacturer in Seattle, WA is planning next month's production goals. Last month the price of a ton of paper was $625, which increased to $840 this month According to the law of...
-
3. Suppose that a researcher wanted to measure the federal government's efforts to make the education of its citizens a priority. The researcher proposed to count the government's budget for...
-
Based on Frontline's Plastic Wars video, explain how it's technically possible to recycle plastics but not economical to do so. What's wrong with the plastics industry's strategy to point at the...
-
In a fictitious developing country named Ariana, the government has employed two economic advisors: Dr Steven Smith and Dr Catherine Jefferson. The government has asked for their advice on how to...
-
Describe the difference between internal and external data.
-
When you weigh yourself on good old terra firma (solid ground), your weight is 142 lb. In an elevator your apparent weight is 121 lb. What are the direction and magnitude of the elevator's...
-
An elevator in a ten-floor building leaves the first floor with six passengers. Assuming all possible outcomes to be equally likely, find the probabilities of the following events. (a) Three...
-
Which ratios should be used to help answer the following questions? (a) How efficient is a company in using its assets to produce sales? (b) How near to sale is the inventory on hand? (c) How many...
-
The price-earnings ratio of General Motors (automobile builder) was 8, and the price-earnings ratio of Microsoft (computer software) was 38.Which company did the stock market favor? Explain.
-
The price-earnings ratio of General Motors (automobile builder) was 8, and the price-earnings ratio of Microsoft (computer software) was 38.Which company did the stock market favor? Explain.
-
A printer is publishing multiple copies of a specific document. While printing this document, ink is being used at a rate of r(t) = 0.2(1 + cos(t)),measured in ounces/min. If the printer started the...
-
discuss the role of colonialism and its impact on language, identity, and power dynamics in Chinua Achebe's "Things Fall Apart," particularly in the context of the Igbo society and European...
-
Let Y1,...,Yn be a random sample from the following distributions with the unknown parameter(s). Estimate them by maximum likelihood and by the method of moments. fe (y) = 0y01, 0 y 1, 0 > 0
Study smarter with the SolutionInn App