The revenue and variable cost relationships

Assignment Help Financial Accounting

Reference no: EM13792219

In 2014, X Company's revenue was $224,550, its total variable costs were $85,050, and its fixed costs were $85,500. Assume that the revenue and variable cost relationships continue in 2015, but fixed costs increase by 19%. If the tax rate is 40%, what must revenue be in 2015 in order for X Company to earn $47,100 after taxes? (Round rates to two decimal places.)

Reference no: EM13792219

Questions Cloud

Directed internal audit to perform specific annual reviews : The Audit Committee of a small manufacturing company that sells its products globally has directed internal audit to perform specific annual reviews to monitor manual journal entries, with a particular focus on potential man-agreement override activi..

Save by buying the part instead of making it : X Company is considering buying a part next year that they currently make. This year's total production costs for 3,200 units of this part were: If production next year is expected to be 3,600 units, how much can X Company save by buying the part ins..

Indifferent between modifying the product and not modifying : X Company is considering a modification to one of its main products next year that would make it more attractive to customers. As a result, X Company could increase the selling price by $2.02. However, fixed costs would increase to $16,110. At what u..

Variable cost per unit is expected : In 2014, X Company's profits were $158,000. In 2015, the selling price is expected to be $38.80, the variable cost per unit is expected to be $25.10, and total fixed costs are expected to be $190,000. How many units must X Company sell in 2015 in ord..

The revenue and variable cost relationships : In 2014, X Company's revenue was $224,550, its total variable costs were $85,050, and its fixed costs were $85,500. Assume that the revenue and variable cost relationships continue in 2015, but fixed costs increase by 19%. If the tax rate is 40%, wha..

Account analysis to estimate total overhead costs : X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 900 units, the plant manager classified each overhead cost item as fixed and variable as follows:

Prepare a cash budget for the first quarter : Aaron Corporation is projecting a cash balance of $30,576 in its December 31, 2013, balance sheet. Aaron’s schedule of expected collections from customers for the first quarter of 2014 shows total collections of $179,758. Prepare a cash budget for th..

Acquiring shipley wireless : What special asset does Midland’s acquisition of Shipley Wireless identify? How should Midland Telecom account for this asset after acquiring Shipley Wireless?

Record the entry to close revenue earned to income summary : Record the entry to close revenue earned to income summary. Record the entry to close all expense accounts to income summary. Record the entry to transfer net income earned in 2015 to the retained earnings account.

User Account

All Pages