Question
Time Remaining 55 minutes 7 seconds 00:55:07 Item 17 Item 17 Time Remaining 55 minutes 7 seconds 00:55:07 Tulsa Company, (a merchandising Co.) has the
Time Remaining 55 minutes 7 seconds
00:55:07
Item 17
Item 17
Time Remaining 55 minutes 7 seconds
00:55:07
Tulsa Company, (a merchandising Co.) has the following data pertaining to the year ended December 31, 2019: (CPA adapted)
Purchases | $ | 620,000 | |
Beginning inventory | 204,000 | ||
Ending inventory | 227,000 | ||
Freight-in | 67,000 | ||
Freight-out | 83,500 | ||
What is the cost of goods sold for the year?
2. Luxus, Inc. employs 42 sales personnel to market its line of luxury automobiles. The average car sells for $28,000, and a 6 percent commission is paid to the salesperson. Luxus, Inc. is considering a change to the commission arrangement where the company would pay each salesperson a salary of $2,700 per month plus a commission of 2% of the sales made by that salesperson. The amount of total monthly car sales at which Luxus, Inc. would be indifferent as to which plan to select is:
3. Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $12.60 each, and the variable cost to manufacture them was $7.60 per unit. The company needed to sell 23,400 shirts to break-even. The after tax net income last year was $6,060. Donnelly's expectations for the coming year include the following: (CMA adapted)
- The sales price of the T-shirts will be $15.
- Variable cost to manufacture will increase by one-third.
- Fixed costs will increase by 10%.
- The income tax rate of 40% will be unchanged.
Sales for the coming year are expected to exceed last year's by 1,170 units. If this occurs, Dorcan's sales volume in the coming year will be:
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