FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last month McAlister Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000 a month. Answer the following questions: a. What was

Last month McAlister Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000 a month. Answer the following questions:

a. What was the contribution margin percentage?
b. What monthly sales volume (in dollars) would be needed to break-even?
c. What sales volume (in dollars) would be needed to earn $150,000?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a The contribution margin percentage can be calculated using the formula Contribution Margin Percent... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics Foundations of Business Analysis and Strategy

Managerial Economics Foundations of Business Analysis and Strategy

Authors: Christopher Thomas, S. Charles Maurice

11th edition

978-0078021718

More Books

Students also viewed these Accounting questions

Question

1. When applied to an equilibrium system, which of the following stresses would cause a change in the Ko value after the equilibrium has been re-established? a. Addition of catalyst b. Decrease in...

Answered: 1 week ago

Question

★★★★★
The Cotswold Limestone Company produces thin limestone sheets that are used for the facings on buildings. As can be seen in the contribution margin statement, last year the company had a net profit...

Answered: 1 week ago

Question

★★★★★
Youve just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual...

Answered: 1 week ago

Question

★★★★★
Answer Problem 6.12 for a 90% CI. Refer to the data in Table 2.13. Regard this hospital as typical of Pennsylvania hospitals. Table 2.13: Hospital-stay data

Answered: 1 week ago

Question

★★★★★
Explain how recording property tax can result in an expense (property tax expense), a liability (property tax payable), and an asset (prepaid property tax).

Answered: 1 week ago

Question

★★★★★
How much thermal energy is required to heat all of the water in a swimming pool by 1C if the dimensions are 4 ft deep by 20 ft wide by 75 ft long? Report your result in megajoules.

Answered: 1 week ago

Question

★★★★★
A certain University exam involves TrueFalse questions. Students who take this exam can be classified into three classes: skilled, who answer each question correctly with probability 0.95,...

Answered: 1 week ago

Question

★★★★★
Rosenberg Manufacturing Corp. is considering marketing their new hearing aid in the city of Big Smoke. This device is targeted at the hearing impaired over the age of 60 years. As she considers the...

Answered: 1 week ago

Question

★★★★★
What can vary depending on the viewpoint of the fund manager or mutual fund company? Portfolio Growth Income Interest Rate Investment Objectives Fees

Answered: 1 week ago

Question

★★★★★
Transaction Entries Final Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger are needed to record the transactions for April:...

Answered: 1 week ago

Question

★★★★★
Accounting Terminology The following are seven technical terms introduced in the chapter. Spending variance Materials price variance Standard costs Labor rate variance Materials quantity variance...

Answered: 1 week ago

Question

★★★★★
The performance of a technical device is described by m quality measures fj: R" R, j = 1, ..., m. The smaller their values the better the performance is. The requirements of technical feasibility...

Answered: 1 week ago

Question

★★★★★
(1) Evaluate the sums and products below for a few small values of n. Then make a conjecture about the value of the sum and product for all positive integers n, and prove your conjecture by...

Answered: 1 week ago

Question

★★★★★
In the two debugging exercises below can someone point out to me where errors are and what Correct coding is to fix the errors. // Program asks students for score on test and displays corresponding...

Answered: 1 week ago

Question

★★★★★
1. Oliver, Patrick & Quincy LLP, is beginning liquidation. It has no cash, total liabilities of P60,000 including a P10,000 loan payable to Patrick, and equal partners' capital account balances of...

Answered: 1 week ago

Question

★★★★★
Jump to level 1 A multimedia application allows users to create and edit their own songs and videos The customer owns the servers used in customer facilities. Which layers are managed by the...

Answered: 1 week ago

Question

★★★★★
The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Majestic uses the FIFO...

Answered: 1 week ago

Question

★★★★★
What is EBIT/eps analysis? What information does it provide managers?

Answered: 1 week ago

Question

★★★★★
Why would the restrictions A > 0 and B Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
The Air Force awarded a $93 billion (or more) contract to a group led by Lockheed, Boeing, and General Dynamics to build the new fighter plane for the 21st century, the YF-22 Lightning 2. A group...

Answered: 1 week ago

Question

★★★★★
Dr. Leona Williams, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Williams enjoys a rather substantial degree of market power...

Answered: 1 week ago

Question

★★★★★
The mean income per person in the United States is $40,000, and the distribution of in-comes follows a normal distribution. A random sample of 10 residents of Wilmington, Delaware, had a mean of...

Answered: 1 week ago

Question

★★★★★
Hugger Polls contends that an agent conducts a mean of 53 in-depth home surveys every week. A streamlined survey form has been introduced, and Hugger wants to evaluate its effectiveness. The number...

Answered: 1 week ago

Question

★★★★★
The Rocky Mountain district sales manager of Rath Publishing Inc., a college textbook publishing company, claims that the sales representatives make an average of 40 sales calls per week on...

Answered: 1 week ago

Previous Question Next Question