Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,830,000 pages at a price of $0.08 each in the coming year. Product costs include:

Direct materials $0.015
Direct labor $0.004
Variable overhead $0.001
Total fixed overhead $80,000

Required:
a. Calculate the break-even point in units.
b. Calculate the break-even point in sales revenue.
c. Calculate the margin of safety in units for the coming year.
d. Calculate the margin of safety in sales revenue for the coming year.
e. What if the total selling and administrative expenses are reduced to $38,800?

Answers

Answer 1

Answer:

Missing Word '"There is no variable selling expense; fixed selling and administrative expenses total $46,000."

Selling price per unit = 0.08

Variable cost per unit = 0.015 + 0.004 + 0.001 = 0.02

Fixed costs = 80,000 + 46,000 = 126,000

Contribution margin per unit = Selling price per unit - Variable cost per unit   = 0.08 - 0.02 = 0.06

Contribution margin ratio = Contribution margin per unit / Selling price per unit  = 0.06 / 0.08 = 0.75

a. Break-even point in units = Fixed costs / Contribution margin per unit  = 126,000 / 0.06 = 2,100,000

b. Break even point in sales revenue = Fixed costs / Contribution margin ratio  = 126,000 / 0.75 = 168,000

c. Margin of safety in units = Planned sales in units - Break even sales in units  = 2,830,000 - 2,100,000 = 730,000

d.  Margin of safety in safety in sales revenue = Planned sales - Break even sales  = (2,830,000 * 0.08) - 168,000  = 226,400 - 168,000 = 58,400

e.  Fixed costs = 80,000 + 38,800 = 118,800

- Break-even point in units = Fixed costs / Contribution margin per unit  = 118,800 / 0.06 = 1,980,000

- Break even point in sales revenue = Fixed costs / Contribution margin ratio = 118,800 / 0.75 = 158,400

- Margin of safety in units = Planned sales in units - Break even sales in units = 2,830,000 - 1,980,000 = 850,000

- Margin of safety in safety in sales revenue = Planned sales - Break even sales  = (2,830,000 * 0.08) - 158,400  = 226,400 - 158,400  = 68,000


Related Questions

Raymond purchased a utility trailer on 2/18/2018. The trailer was delivered on 3/10/2018. He added side rails and a lift to the bed of the trailer. The work was completed and the trailer ready for use on 4/2/2018. What is the date placed in service?

a. 02/18/2018
b. 03/10/2018
c. 04/02/2018
d. 01/01/2018

Answers

Answer:

B. 03/10/2018

Explanation:

The date placed in service is 03/10/2018 since this was the date that this trailer or machine was delivered for use according to the question.

The date in service can be defined to be the date that an inventory item such as this machine was made available for service or in other words made available for use. We use this date to calculate the depreciation on the serial inventory.

Answer:

i think its d

Explanation:

You believe you will spend $240,000 a year for 25 years once you retire in 17 years. If the interest rate is 3.90% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. How much must you need saved once you reach retirement. $ b. how much must you save each year until retirement to meet your retirement goal

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the money required at the time of retirement:

FV= 240,000*25= $6,000,000

Now, using the following formula, we can determine the annual investment:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (6,000,000*0.039) / {[(1.039^17) - 1]

A= $255,373.88

An engineering graduate plans to buy a home. She has been advised that her monthly house and property tax payment should not exceed 35% of her disposable monthly income. After researching the market, she determines she can obtain a 30 year home loan for 6.95% annual interest per year, compounded monthly. Her monthly property tax payment will be approximately $150.What is the max amount she can par for a house if her disposable monthly income is $2000?

Answers

Answer:

$83,107.20

Explanation:

Amount available for monthly house payment = [$ 2000 * 35% ] - $ 150

= $700 - $150

= $550

Effective rate per month = 6.95% / 12 months = 0.00579 = 0.579%

No of periods = 30 years * 12 months = 360 months

Present Value = Amount available for monthly house payments * [P/A,0.579%,360]

[P/A,0.579%,360] =[(1 + i)^n - 1] / [( 1 + i)^n * I]= [(1 + 0.00579)^360 - 1] / [( 1 + 0.00579)^360 * 0.00579]

P/A,0.579%,360 = [7.99158 - 1] / [ 7.99158 * 0.00579]

P/A,0.579%,360 = 6.99158 / 0.04627

P/A,0.579%,360 = 151.104

Present Value = Amount available for monthly house payments * [P/A,0.579%,360]

Present Value = $550 * 151.104

Present Value = $83,107.20

Thus, the max amount she can par for the house is $83,107.20

California Company uses a predetermined overhead rate based on machine hours to apply overhead. The company has the following estimated costs for next year:

Direct materials: 10,000
Direct labour: 30,000
Sales commissions: 40,000
Salary of production supervisor: 20,000
Indirect materials: 4000
Advertising expense: 8000
Rent on factory equipment: 10000

California Company estimates that 10,000 machine hours will be worked during the year. The predetermined overhead rate per machine hour will be:__________

Answers

Answer:

$3.40 Per Machine Hour

Explanation:

The computation of the predetermined overhead rate is shown below:

As we know that

Predetermined overhead rate is

= Estimated manufacturing overhead ÷ estimated machine hours

where,

Estiamted Manuafctuing overheads is

= Salary of Prodcution Supervisior + Indirect Material + rent on Factory Equipment

= $20,00 + $4,000 + $10,000

= $34,000

And, the estimated machine hours is 10,000

So, the predetermined overhead rate is

= $34,000 ÷ 10,000

= $3.40 Per Machine Hour

Even if a company has accurate sales forecast information calculated from multiple methods and based on solid data, the company should:

Answers

Answer:

prepare for multiple possible scenarios so it can react to whatever happens in the market

Explanation:

Sales forecast is a method of predicting futures sales volumes and patterns. It is used by businesses to make informed decisions on resource allocation.

Sales forecast determines short term and long term performance of the business.

However having accurate sales forecast information calculated from multiple methods and based on solid data does not give full assurance based on fluctuating market forces.

The business will need to prepare for multiple possible scenarios so it can react to whatever happens in the market.

A company should be prepared by ensuring proactiveness to other possible

conditions not contained in the forecast.

A company having accurate sales forecast information calculated from

multiple methods and based on solid data doesn't guarantee that deviations

can't occur. Sales information can only be forecasted and other activities  can alter the speculated sales information.

For example, the lockdown during the cov-id era caused most

shops to be shut down as a result of the self isolation carried out in

respective homes. This is a deviation in the norm and companies who

weren't prepared for it ran into debts and became liquidated.

Read more on https://brainly.com/question/19533684

I NEED HELP!! THIS IS SO CONFUSING!!

Answers

Explanation:

AD decreas price level increases and real GDP increase

The accounting effects of inventory sales across companies within a consolidated entity are removed when preparing consolidated financial statements because:_______

Answers

Answer:

The accounting effects of inventory sales across companies within a consolidated entity are removed when preparing consolidated financial statements because:

- usually from a consolidated statements, transactions with outside parties are only reflected.

- usually from a consolidated perspective, there is neither a sale nor a purchase has occurred.

If you earned a 2.6% return on your savings with a 25% tax rate, what is your after-tax rate of return?

Answers

Answer: 1.95%

Explanation:

Your after-tax return can be calculated by the formula;

= return * ( 1 - tax rate)

= 2.6% * ( 1 - 25%)

= 1.95%

When an organization must deal with a problem that repeats itself over and over again management should take a:
a) Customized tailored approach to solving each variation of the problem.
b) One solution fits all approach to the problem.
c) Must concentrate on perfecting the technology and business processes associated with the problem.

Answers

Answer:

Must concentrate on perfecting the technology and business processes associated with the problem.

Market power is_____________

Answers


Description
Market power refers to the ability of a firm (or group of firms) to raise and maintain price above the level that would prevail under competition is referred to as market or monopoly power. The exercise of market power leads to reduced output and loss of economic welfare.
The level of influence that a company has on determining market price, either for a specific product or generally within its industry.

Incurring an expense for advertising on account would be recorded by:

a. Is the primary standard-setting body in the United States.
b. Is governed by the U.S. Securities and Exchange Commission.
c. Can overrule the FASB when their policies disagree.
d. Promotes the use of high-quality, understandable global accounting standards.

Answers

Complete Question:

Incurring an expense for advertising on account would be recorded by:

Group of answer choices

A) Debiting a liability account.

B) Crediting an asset account.

C) Debiting an expense account.

D) Debiting an asset account.

Answer:

C) Debiting an expense account.

Explanation:

Incurring an expense for advertising on account would be recorded by debiting an expense account.

This ultimately implies that, when a business firm incurs an expense such as on advertising its goods or services, the appropriate account on the balance sheet to record this will be to debit the advertising expense account and then credit the account payable.

11. What percentage of your salary should go to savings? (1 point)
05%
O 10%
O 20%
O 50%

Answers

Answer:

20%

Explanation:

Answer: 10%

Explanation: Took test

A rise in the market interest rate will cause the market value of a financial instrument such as a bond to rise. Select one: True False

Answers

Answer:

False

Explanation:

As we know that there is an opposite relationship between the price of the bond and the market interest rate. That means if there is a rise in the market interest rate so the price of the bond decreased

And, on the other hand if there is a decrease in the market interest rate so the price of the bond is increased

hence, the given statement is false

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services, and she has estimated demand in three categories, low, medium, and high. NUMBER OF BEAUTICIANS DEMAND LOW MEDIUM HIGH One 50 75 100 Two 0 100 100 Three (100 ) 70 300 If she feels the chances of low, medium, and high demand are 50 percent, 20 percent, and 30 percent respectively, what are the expected annual profits for the number of beauticians she will decide to hire?

Answers

Answer:

the expected annual profit for the number of beauticians is $70,000

Explanation:

The computation of the expected annual profit for the number of beauticians is shown below:

= 50 × 0.50 + 75 × 0.20 + 100 × 30

= 25 + 15 + 30

= 70

= $70,000

hence the expected annual profit for the number of beauticians is $70,000. The same is to be considered

All other information that are mentioned should be ignored

Employees view budgeting more positively when goals are established for them by senior management.

a. True
b. False

Answers

Answer:

true

Explanation:

i think true

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