Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Denny Manufacturing had a bad year in 2012. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 75,300 units of product: Net sales $1,445,760; total costs and expenses $1,741,800; and net loss $296,040. Costs and expenses consisted of the following.
Total
Variable
Fixed
Cost of goods sold
$1,206,700
$781,900
$424,800
Selling expenses
423,900
79,400
344,500
Administrative expenses
111,200
50,900
60,300
$1,741,800
$912,200
$829,600
Management is considering the following independent alternatives for 2013.
1.
Increase unit selling price 28% with no change in costs and expenses.
2.
Change the compensation of salespersons from fixed annual salaries totaling $203,000 to total salaries of $36,900 plus a 5% commission on net sales.
3.
Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.
(a) Compute the break-even point in dollars for 2012. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.)
Break-even point
$
(b) Compute the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.)
Increase selling price
Change compensation
Purchase machinery
Include tests of transactions after the balance sheet date as well as tests of transactions during the year under audit. Show
NiSource Preferred B (NYSE: NI-B) is a fixed-rate perpetual preferred stock paying a $3.88 annual dividend. If the required rate of return is 7.88 percent, what is the value of one share? If the price of this preferred stock were $46.00, what woul..
Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account
a proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently
Prepare a trial balance with the following information provided
A. What will be the size of each annual year-end payment?
The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, notes payable worth $1,151,663, and other current assets of $121,455. What is the com..
acme company purchased equipment on january 1 2007 at acost of 180000. the equipment is expected to have a useful
Determine the break-even point in sales units and the break-even point in sales units if the company desires a target profit of $25,000 - Determine the companys margin of safety
Prepare a statement of cash receipts and disbursements for each of the four years under each alternative. What is the cumulative difference in cash flow for the four years taken together?
maccloud industries has two divisions-standard and premium. each division has hundreds of different types of tennis
Transparency and Disclosure: A company's overall policy for controlling and disseminating inside information must meet the standards for transparency and disclosure. What would the company's specific financial reporting objectives be with respect t..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd