User Account

All Pages

Compute the additional profit that tensing would earn

Assignment Help Accounting Basics
Reference no: EM131673785

Question: Break-Even Units, Contribution Margin Ratio, Margin of Safety Tensing Company's projected profit for the coming year is as follows:

                                                   Total                   Per Unit

Sales                                       $11,700,000                $20

Total variable cost                          8,190,00                 12

    Contribution margin                $  3,510,000                $ 8

Total fixed cost                             2,254,200

    Operating income                  $   1,255,800

Required: 1. Compute the break-even point in units.

2. How many units must be sold to earn a profit of $450,000?

3. Compute the contribution margin ratio. Using that ratio, compute the additional profit that Tensing would earn if sales were $37,000 more than expected.

4. For the projected level of sales, compute the margin of safety in units.

Reference no: EM131673785

Questions Cloud

Describe the australian governments ism and pspf : Describe the Australian Government's ISM and PSPF with particular emphasis on information classification.
Application process of several potential sponsors : Explain the sponsorship criteria and application process of several potential sponsors for an event.
Which firm has the higher economic value added : Which firm has the higher economic value added? Which has higher economic value added per dollar of invested capital?
Perform a risk assessment and threat identification : Identify the risks and potential effects associated with the areas of the organization pertaining to security and disaster recovery.
Compute the additional profit that tensing would earn : Compute the contribution margin ratio. Using that ratio, compute the additional profit that Tensing would earn if sales were $37,000 more than expected.
Calculates the total cost of ownership of each machine : Calculates the total cost of ownership of each machine. Based on the TCO calculation, specify which model you recommend purchasing.
About the personal ethics : Review the list of possible personal ethics scenarios presented below. Pick three of these scenarios, and conceptualize how you might resolve the issue.
Compute the margin of safety in units : Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.
What time frame would you use for evaluation why : From your viewpoint, what is the most appropriate way to evaluate this plan, and what time frame would you use for evaluation? Why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the bond interest expense for year 1

What is the bond interest expense for year 1?

  Manufacturing overhead and direct labor cost

In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54000 and the direct materials cost was $34000, the direct labor cost was:

  The impact of budgets on people

Explain why managers may be reluctant to participate fully in setting budgets, indicating the negative side effects, which may arise from the imposition of budgets by senior management.

  On january 2 richie valens pauid 24000 for 980 shares of

on january 2 richie valens pauid 24000 for 980 shares of the common stock of acme company. mr. valens recieved an 0.84

  Sara company installs a computerized manufacturing machine

sara company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of

  Biggest tax issues facing taxing authorities

Transfer pricing is probably one of the biggest tax issues facing taxing authorities. Transfer pricing involves allocating revenues and costs between countries in order to create the best possible tax situation for a multinational company. For thi..

  Katherine brewer is the owner and operator of personality sh

Katherine Brewer is the owner and operator of Personality Shine LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Personality Shine has assets of $756,000 and liabilities of $181,000. Using the acc..

  During the last year of operations accounts receivable

during the last year of operations accounts receivable increased by 10900 accounts payable increased by 5900 and

  Finestra corporation produces a single product that it

finestra corporation produces a single product that it currently sells for 10. fixed expenses are 120000 for the year

  How does each affect net patient service revenue

How does each affect net patient service revenue? Would your answers be the same for a governmental hospital?

  Sales during the year

Sales during the year were 500 units. Beginning inventory was 200 units at a cost of $5 per unit.

  Determine the tax consequences to gamma-marsha

On January 2 of the current year, Gamma liquidates and distributes all property to Marsha except that Gamma retains cash to pay the accounts payable and any tax liability resulting from Gamma's liquidation. Assume that Gamma has no other taxable i..

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