Calculate margin of safety reported by pure water products

Assignment Help Financial Accounting
Reference no: EM131219553

Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Revenue and cost information for each product appears below:

?      the unit that attaches to the faucet is sold for $80 and has variable costs of $20

?     the pitcher-filter sells for $90 and has variable costs of $25

?     fixed costs total $775,000

?     Pure Water sells 3 faucet models for every 2 pitcher-filters sold

Assume that last year, the company sold 12,000 faucet model units and 8,000 pitcher-filter units.

Calculate the margin of safety reported by Pure Water Products last year.

Reference no: EM131219553

Questions Cloud

The chocolate candy factory process cost accounting : The Chocolate Candy Factory’s Process Cost Accounting. Determine the general journal entry for each of the following transactions. Use the following accounts from the manufacturing accounting system, plus use any other accounts, such as Cash, Wages P..
Use of MACRS depreciation for income tax purposes : Comprehensive At the beginning of 2013, Norris Company had a deferred tax liability of $6,500, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. Prepare Norri's 2013 stateme..
Pure water products produces two types of water filters : Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the maximum amount the compa..
Financial statements-accelerated method in its tax returns : In which of the following situations should the named company not record any depreciation expense on the asset described? Evergreen Mfg. is a rapidly growing company that acquires equipment every year. Evergreen uses straight-line depreciation in its..
Calculate margin of safety reported by pure water products : Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the margin of safety reporte..
Calculate the number of units of the pitcher-filters : Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the number of units of the p..
Calculate the number of units of the faucet-model : Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the number of units of the f..
What impact has affirmative action had employment practices : Discussions of affirmative action and its offshoot of reverse discrimination generally raise more heat than light. As a starting point, please read the case of Taxman v. Board of Education (see link below) that no matter what your personal views pres..
The average fixed cost per unit-average total cost per unit : At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296. For the activity level of 8,900 units, compute the following values. (a) The total variable cost; (b) the total cost; (c) ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculating annuity payment periods epr amp annual

calculating annuity payment periods epr amp annual percentage rate apr.1. calculating number of periodsnbspone of your

  Dividends per share

JMH has the following stock outstanding-Preferred, 5%, $100 par value, 2,000 shares-Common, $60 par value, 5,000 shares-Compute the amount of dividends per share payable to each class of stock for each independent case.

  What the net income would have been if the allowance method

During its first year of operations a company had net sales of $3,250,000, wrote off $27,800 of accounts as uncollectible using direct write-off method, and reported net income of $487,500. Determine what the net income would have been if the allowan..

  The systematic risk is diversifiable

The systematic risk is diversifiable. The efficient portfolios provide the highest possible return for a given level of risk (i.e., for a given standard deviation). With the ability to borrow and lend at the risk-free rate, there is one BEST efficien..

  Prepare necessary entries froxel company must make

declared and paid cash dividends of $1.75 per share, and on December 31 it reported net income of $150,000. Prepare necessary entries Froxel Company must make to account for these transactions and events.

  Margin of safety in units

Budgeted number of units 4160-What is margin of safety in units.

  Discussions this week

Some common sense talking points are moving around in our discussions this week. As always there are very solid themes coming to the forefront. Ben McClure writes for Investigator, and I think some of his ideas here are valuable to this discussion.

  Under the securities act

Under the Securities Act of 1934, which of the following intents as proof against an auditor is incorrect?

  Appointed auditor for gibbs manufacturing company

As a recently appointed auditor for Gibbs Manufacturing Co., the Manager of the audit, asked you to examine selected accounts before issue the financial statement of 12/31/10, to be audited.

  Compute the number of sales units by taking the total sales

To help you with several budgets, you will need sales in UNITS (not total dollars as listed above). You can calculate the number of sales units by taking the total sales / sales price per unit.

  Capital budgeting is integral part of strategic planning

Capital budgeting is an integral part of the strategic planning and budgeting process of most firms. Explain and provide a numerical example of the use of the internal rate-of-return method and the Net Present Value (NPV) method of analyzing capital ..

  Compute the variable overhead spending variance

Compute the variable overhead spending variance. Which project represents the best investment for Boston? Using the net present value method, what is the maximum amount that the company should invest?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd