A & b are independent questions. a) Mason Company's selling price was $20.00 per unit. Fixed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A & b are independent questions. a) Mason Company's selling price was $20.00 per unit. Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. Compute the breakeven point in units. Show computation. Prepare CM income statements at BE and at $9,000 income. b) Black Company's sales are $600,000, its fixed expenses are $150,000, and its variable expenses are 60% of sales. Black sold 10,000 units. Based on this information, prepare a CM income statement, Show computations. Please note: For each income statement above, you must show number of units X $ per unit where appropriate. A & b are independent questions. a) Mason Company's selling price was $20.00 per unit. Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. Compute the breakeven point in units. Show computation. Prepare CM income statements at BE and at $9,000 income. b) Black Company's sales are $600,000, its fixed expenses are $150,000, and its variable expenses are 60% of sales. Black sold 10,000 units. Based on this information, prepare a CM income statement, Show computations. Please note: For each income statement above, you must show number of units X $ per unit where appropriate.
Expert Answer:
Answer rating: 100% (QA)
a To compute the breakeven point in units we will use the formula Breakeven point in units Fixed exp... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Posted Date:
Students also viewed these accounting questions
-
The Parry Companys breakeven point in units is 20,000. Assuming that variable costs are 30% and fixed costs are $100,000, what is the companys projected operating income if sales are $750,000? A)....
-
a. Based on this information alone, can you determine whether Wayne can pay a $2,000 cash dividend? Why or why not? b. Reconstruct the accounting equation for each company using percentages on the...
-
a. Based on this information alone, can you determine whether White can pay a $2,000 cash dividend? Why or why not? b. Reconstruct the accounting equation for each company using percentages on the...
-
Use the figure to make the lists in Exercises 8586. List the slopes m 1 , m 2 , m 3 , and m 4 in order of decreasing size. y y = mx + b y = mx + b X - y = m3x + b3 y = m4x + b4
-
For the conditions and results of Example 8.4, involving the extraction of benzoic acid, from a dilute solution in water with toluene, determine the following when using a six-flat-blade turbine...
-
On December 31, 2013, Bridgeport Co. shows the following account for machinery it had assembled for its own use during 2013: Account: MACHINERY (Job Order #1329) An analysis of the details in the...
-
On September 24 MJ Foods of Chicago sold \(\$ 2,400,000\) of corn oil to Taj Bakeries, Ltd. of Madras, India, payable in three months. The sale was denominated in Indian rupees at a time when the...
-
In what way could African slaves maintain a degree of control over their situation as salves and their being forced to live a foreign culture?
-
Identify the set of perpendicular A E * B F O AB LCD O OO CD EF AB F 13 T AB LEF
-
On June 12, 2002, Delta Corporation was awarded a $160,000 contract for testing a product. The contract consisted of $143,000 for labor and materials, and the remaining $17,000 was profit. The...
-
Iff" (c) = 0, then (c, f(c)) is an inflection point of the curve y = f(x). Select one: True False
-
Price of Gasoline The average retail price of gasoline (all types) for the first half of 2005 was 212.2 cents. What would the standard deviation have to be in order for a 15% probability that a...
-
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company...
-
2 34 5 Dog Up! Franks is looking at a new sausage system with an installed cost of $385,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which...
-
4. 5. 6. The business sub-lets a portion of the building and earns a rental income of R4,800 per month. The rental for February is still outstanding and has not been received from the tenant....
-
Question 2 (20 marks) Listed below is a simplified balance sheet showing the dollar value and duration of assets and liabilities held. For ease of calculation, we will assume an average interest rate...
-
Assume that Swifty Inc. invests in a bond for $130,000. The bond was purchased at par and is accounted for using amortized cost. At year end, management feels that there has been a significant...
-
The area of a rectangle is 30 cm 2 and its perimeter is 26 cm. Find the length and width of the rectangle.
-
Faith Patel has worked as the plant manager of Murdock Corporation, a large manufacturing company, for 10 years. The company produces stereo CD players for automotive vehicles and sells them to some...
-
Nielsen Manufacturing Company makes a product that sells for $60 per unit. Manufacturing costs for the product amount to $32 per unit variable, and $192,000 fixed. During the current accounting...
-
Souter Oil Corporation, which distributes gasoline products to independent gasoline stations, had $480,000 of cost of goods sold in January. The company expects a 2.5 percent increase in cost of...
-
Railway Oil and Gas Company owned the following unproved property as of the end of 2010: Although no activity took place on Lease A during the year, Railway decided that Lease A was not impaired,...
-
Latitude Energy decided to explore some acreage in Texas before acquiring any leases. Latitude acquired shooting rights only on 15,000 acres owned by Mr. T for \($0.10/acre. Latitude\) obtained...
-
Sauer Energy purchased land in fee for $100,000. The fair market values of the surface and mineral rights were determined by a qualified appraiser as follows: Prepare a journal entry to record the...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App