Amarok Company sold 18,300 units last year at $16.00 each. Variable cost was $13.70, and total fixed

Question:

Amarok Company sold 18,300 units last year at $16.00 each. Variable cost was $13.70, and total fixed cost was $34,500.

Required:
1. Prepare an income statement for Amarok for last year.
2. Calculate the break-even point in units.
3. Calculate the units that Amarok must sell to earn operating income of $13,800 this year.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

See More Books

Question Posted: Jul 19, 2022 03:10 AM

See More Questions

We have looked at the breakeven calculations for a single-product firm. However, most firms make more than one product - or service. Conceptually, multiple-product breakeven is the same as single...
The financial statements of Zoro Industries for the year ended Dec. 31, 2021, are given below. Zoro Industries Income Statement For the year Ended Dec. 31, 2021 Sales Revenue P160,000.00 Less: Cost...
The following information relates to Gretan Ltd and Hutey Ltd. Both companies manufacture and sell calculators. Gretan Ltd Hutey Ltd Sales in units per year 20,000 20,000 Selling Price Rs500 Rs500...
Ito calculus and Ito's Lemma. Suppose dZ is the increment of a Wiener process and dX = (X(t), t)dt + o(X(t), t)dZ. (a) If F(X,t) = e"X, what is dF(X,t) (interpreted in the sense of Ito calculus)? (b)...
Form a team with at least two other classmates, and come up with an idea for a new service. Develop a marketing mix strategy for your new service.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter....
How do you select the appropriate statistical method to test a hypothesis?
E&Y is a defendant in Lehman-related lawsuits filed in both state and federal courts. Identify the factors that influence E&Ys legal exposure between lawsuits filed in state courts versus those filed...
Just before the start of a recent season, the Toronto Maple Leafs announced the long-term signing of Mitch Marner, one of their top players. The news clipping excerpt from the Toronto Star, below,...
Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the following amounts: Ordinary income.$43,000 Guaranteed payment12,000...
Belham Company produces and sells disposable foil baking pans to retailers for $3.45 per pan. The variable cost per pan is as follows: Direct materials................................. $0.67 Direct...
Explain why contribution margin per unit becomes profit per unit above the break-even point.
The compounds benzyl chloride (C6H5CH2Cl), (dichloromethyl) benzene (C6H5CHCl2), and (trichloroethylene benzene (C6H5CCl3) all undergo nitration more slowly than benzene, the proportion of...
How do we design a successive approximation register using a memristor?
Factor the polynomial by grouping. 6st + 9t - 10s - 15
On average there are four traffic accidents in a city during one hour of rush-hour traffic. Use the Poisson distribution to calculate the probability that in one such hour there arc (a) No accidents...
Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in its two divisions: the PSF Division and the Components Division. The Components Division produces electronic...
Technovia Inc. has two divisions: Auxiliary Components and Audio Systems. Divisional managers are encouraged to maximize ROI and EVA. Managers are essentially free to determine whether goods will be...
The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are $2,700,000 per year. The total labor minutes available are 600,000....
1. (A nice inharitage) Suppose $1 were invested in 1776 at 3.3% interest compounded yearly a) Approximatelly how much would that investment be worth today: $1,000, $10,000, $100,000, or $1,000,000?...
Why Should not the government subsidize home buyers who make less than $120K per year. please explain this statement
Entries for equity investments: 20%50% ownership On January 6, 20Y8, Bulldog Co. purchased 25% of the outstanding common stock of $159,000. Gator Co. paid total dividends of $20,700 to all...

Amarok Company sold 18,300 units last year at $16.00 each. Variable cost was $13.70, and total fixed

Question:

Step by Step Answer:

1 2 BreakEven Units 345001600 1370 15000 3 Unit...View the full answer

Managerial Accounting The Cornerstone Of Business Decision Making

Students also viewed these Business questions