Question 20:

(Mod 4) ABC BioMed Labs, LLC analyzes blood samples (aka "lab tests") for medical practitioners.As part of its strategic planning process, ABC's management team has come together for a weekend retreat.Attendees at the retreat will address varying issues including capital investment decisions, levels of output, make-or-buy decisions, etc.To assist management, the firm's accountants have analyzed past records, and provided certain information that may be relevant to the issues to be addressed during the retreat.

Annual Fixed Costs:$110,000.00

Variable Costs for a LabAnalysis:$30.00

Amount Charged (revenue) PerAnalysis$80.00

You are asked to do the following: (answers are in units of output, i.e., # of lab tests):

(a) Create and then solve an equation (formula) that indicates how many lab tests must be performed if the company is to breakeven ("0" profit)?

(b) Create and solve an equation that indicates how many analyses must be performed if the company is to earn a $40,000 net profit before taxes?

(c)Create and solve an equation that indicates how many analyses must be performed if the company is to earn a $40,000 net after-tax profit, assuming the company is in a 25% tax bracket.

Please see questions below:

QUESTION 25 The Cash Conversion Cycle (CCC) article appearing in the Journal of Accountancy makes the point that ne higher the CCC, the safer the company should be. QUESTION 26 One advantage of leastsquare regression analysis is that you can calculate how well the resulting cost line "fits" the actual change in costs. The goodness of t measure is known as the "coefficient of determination." 0 True 0 False QUESTION 27 With \"target costing" (or \"target pricing"), you determine your total costs per unit, then add the required prot per unit, and the resulting number is the selling price. 0 True 0 False QUESTION 20 Spoinu SaveAnswt (Mod 4) ABC BioMed Labs, LLC analyzes blood samples (aka \"lab tests") for medical practitioners. As part of its strategic planning process, ABC's management team has come together for a weekend retreat. Attendees at the retreat will address varying issues including capital investment decisions, levels of output, makeioribuy decisions, etc. To assist management, the firm's accountants have analyzed past reoords, and provided certain information that may be relevant to the issues to be addressed during the retreat. Annual Fixed Costs: $110,000.00 Variable Costs for a Lab Analysis: $30.00 Amount Charged (revenue) Per Analysis $80.00 You are asked to do the following: (answers are in units of output, i.e., # of lab tesE): (a) Create and then solve an equation (formula) that indicates how many lab tests must be performed if the company is to breakeven (\"0" prot)? (b) Create and solve an equation that indicates how many analyses must be performed if the company is to earn a $40,000 net prot before taxes? (c) Create and solve an equation that indicates how many analyses must be performed if the company is to earn a $40,000 net afteritax profit, assuming the company is in a 25% tax bracket. QUESTION 21 Process Accounting Systems are most applicable for companies that produce small quantities of high-priced goods that are typicallyr customdesigned for the purchaser. QUESTION 22 Under the rules of debit and credit, to increase an asset, you always debit it. QUESTION 23 When making joumal entries, in order to increase an "liability'l account, you would Debit the account