User Account

All Pages

Compute garys monthly breakeven sales in dollars

Assignment Help Cost Accounting
Reference no: EM13527376

Computing breakeven sales and operating income or loss under different conditions

Gary's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $660,000 and a contribution margin of 75% of revenues.

Requirements

1. Compute Gary's monthly breakeven sales in dollars. Use the contribution margin ratio approach.

2. Use contribution margin income statements to compute Gary's monthly operating income or operating loss if revenues are $530,000 and if they are $1,040,000.

3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain.

Reference no: EM13527376

Questions Cloud

Compute the monthly margin of safety in dollars : Compute the monthly margin of safety in dollars if the shop achieves its income goal and express Rodney's margin of safety as a percentage of target sales.
Cell cycle consists of several checkpoints : The cell cycle consists of several checkpoints at which the cycle can be stopped before restarting. Which of the following is not a function of these checkpoints?
Explain an air pollutant produced when nitrogen dioxide : Ozone is an air pollutant produced when nitrogen dioxide, NO2 , from automobile exhaust reactswith oxygen. The chemical equation for this reaction is NO2(g) + o2(g) ---> NO(g) + O3(g).
Intellectual property law is a major issue facing organize : Intellectual property law is a major issue facing organizations
Compute garys monthly breakeven sales in dollars : Compute Garys monthly breakeven sales in dollars. Use the contribution margin ratio approach - Computing breakeven sales and operating income or loss under different conditions
Electron transport chain starting with least electronegative : Which of the following describes the sequence of electron carriers in the electron transport chain starting with the least electronegative.
Find the net displacement vector from dallas to chicago : a map suggest that atlanta is 730 miles in a direction of 5.00°north of east of dallas find net displacement vector from dallas to chicago
Compare the impact of changes in the sales price : Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units - Impact on breakeven point if sale price, variable costs, and fixed costs change
The project consists of multiple phases : The project consists of multiple phases.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare first on alerts bank reconciliation

Prepare First on Alerts bank reconciliation at December 31 - The bank statement also shows a $30 service charge and $20 of interest revenue that First on Alert earned on its bank balance.

  The rite-way plumbing co began business march 1 2006 in

the rite-way plumbing co. began business march 1 2006 in sarasota. its business address is 124 division lane sarasota

  Make-or-buy decisionnbspcurtis corporation is beginning in

make-or-buy decisionnbspcurtis corporation is beginning in manufacture mighty mint a new mouthwash in a small spray

  Describe tax revenue systems

Describe what other tax revenue systems could you consider and how do you think they would be better or worse?

  Estimates that total cash flows to be generated by selling

Customers  purchased your products throughout the year. Total sales for the year were $2,950,000. This cost of this inventory,  was $1,500,000 and you use a perpetual inventory system.

  What is estimated percent increase in net operating income

Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 4% increase in s..

  Determine the eost of goods available for sale

Determine the ending inventory and the cost of goods sold under each of the cost flow methods of FIFO, LIFO, and weighted average cost.

  Accounting and partnership problems

Accounting and Partnership problems

  Historical cost or fair value accounting treatment

An interesting research paper on fair value accounting of PP&E under IFRS which allows either historical cost or fair value accounting treatment.

  Examine how the sox framework can prevent business model

examine how the sox framework can prevent business model fraud in managerial accounting and financial accounting.

  Andrew brian colin diana and elizabeth were the directors

andrew brian colin diana and elizabeth were the directors of gemsales pty ltd a company engaged in the business of

  Would you recommend the acceptance of this proposal

Would you recommend the acceptance of this proposal? Why or why not. Prepare a short double spaced Word paper elaborating and supporting your answer.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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