The company is considering a purchase of equipment that

Assignment Help Accounting Basics
Reference no: EM13591065

The company is considering a purchase of equipment that would reduce its direct labor costs by $114,088 and would change its manufacturing overhead costs to 30% variable and 70% fixed. It is also considering switching to a pure commission for its sales staff. This would change selling expenses to 90% variable and 10% fixed (assume total selling expense is $263,280, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars.

  • Contribution margin =?
  • Contribution margin ratio=?
  • Break-even point in sales=?

Reference no: EM13591065

Questions Cloud

A pump discharges a liquid into a drum aat the rate of 0032 : question a pump discharges a liquid into a drum aat the rate of 0.032 m3s. the drum1.5 m in dia and 4.2m in length can
Santana rey created business solutions on october 1 2011 : santana rey created business solutions on october 1 2011. the company has been successful and santana plans to expand
The standard deviations are 8 amp 7 obtain the mean and : the means of two samples of size 50 and 100 respectively are 54middot4 amp 50middot3 and the standard deviations are 8
Calculate the average annual dividend per share for each : love theatre inc. owns and operates movie theaters throughout new mexico and utah. love theatre has declared the
The company is considering a purchase of equipment that : the company is considering a purchase of equipment that would reduce its direct labor costs by 114088 and would change
A soap bubble with walls 398 thick floats in air if this : question a soap bubble with walls 398 thick floats in air. if this bubble is illuminated perpendicularly with sunlight
Aussie yarn co is a us producer of woolen yarn made from : aussie yarn co. is a u.s. producer of woolen yarn made from wool imported from australia. raw wool is processed spun
Griffiths president has asked why you use one method for : griffith delivery service purchased a delivery truck for 33600. the truck has an estimated useful life of six years and
The mean weight of chas dave and ed is 77 kg chas and ed : five people arnie beth chas dave and ed weigh themselves. you are given the following information about their weights.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Steve and linda hom live in bartlesville oklahoma two years

steve and linda hom live in bartlesville oklahoma. two years ago they visited thailand. linda a professional chef was

  Evaluate the amount of goodwill

Evaluate the amount of goodwill or others intangible assets derived from the transaction and explain whether you support that this value was created as a result of the business combination.

  Summary of teh payroll of matrix publishing

According to a summary of teh payroll of Matrix Publishing Co., $380,000 was subject to the 7.5% FICA tax. Also $16,000 was subject to state and federal unemployment taxes.

  Problem on contribution margin per unit

Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per u..

  Who declared bankruptcy

Raynette Ramos, owner of Ramos Rentals, uses the allowance method in accounting for uncollectible accounts. Record the following transactions in general journal form.

  A machine is purchased by making payments of 6000 at the

a machine is purchased by making payments of 6000 at the beginning of each of the next five years. the interest rate

  The company pays 400000 for real estate plus closing costs

the company pays 400000 for real estate plus closing costs of 10000. how do you prepare the journal entry to record the

  Open market as treasury stock pay

Open market as treasury stock pay

  Problem regarding bankruptcy

During 2010, one of the customers of Klote company declared bankruptcy. This customer had been a major purchaser of Klote's products and had owed $40,000 on account to Klote (a material portion of its receivables) at the time of bankruptcy.

  What are internal controls why do companies need them what

what are internal controls? why do companies need them? what are some examples of internal controls? who is responsible

  What is the gross profit percentage

The buyer assumed Juan's mortgage and gave Juan a note for $550,000 (plus interest at the Federal rate) due in the following year. What is the gross profit percentage?

  Prepare a direct materials budget for geico compound by

swanson inc. manufactures an advanced swim fin for scuba divers. management is now preparing detailed budgets for the

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