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Frieden Company's contribution format income statement for the most recent month is given below: Sales $ 1,189,000 Variable expenses 832,300 Contribution margin 356,700 Fixed expenses 285,360 Net operating income $ 71,340 Required: 1. New equipment has come on the market that would allow Frieden Company to automate a portion of its operations. Variable expenses would be reduced by $8.70 per unit. However, fixed expenses would increase to a total of $642,060 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased.
Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Instead of paying sales commissions, which are included in variable expenses, the marketing manager suggests that salespersons be paid fixed salaries and that the company invest heavily in advertising. The marketing manager claims that this new approach would increase unit sales by 50% without any change in selling price; the company's new monthly fixed expenses would be $356,700; and its net operating income would increase by 25%. Compute the break-even point in dollar sales for the company under the new marketing strategy.
a companys payroll runs 2800 every two weeks 200 per day the last pay day was friday december 19th and the next pay day
During 2011, Milton Hanover was granted a divorce from his wife. The divorce decree stipulated that he was to pay both alimony and child support for a specified period of time.
poole corporation has collected the following information after its first year of sales. net sales were 1814400 on
Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings.
yong contributes a machine having an adjusted basis of 20000 and a fmv of 25000 for a 10 partnership interest. yong had
A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total contro..
Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result?
The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits?
Make journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases
Prepare entries in general journal form to record the following transactions in General Fund general ledger accounts for fiscal year 2012. Use modified accrual accounting.
Barbara and Bill formed an equal partnership, B&B, a general partnership, on January 1, 2011. Barbara contributed $100,000 in exchange for her one-half interest.
Do you agree with Arnold's reasoning for not reporting any allowance for future uncollectible accounts? Explain.
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