Thursday 12 September 2013
Thursday 5 September 2013
In 2012, Hadicke Company had a break-even point of $350,000 based on a selling price of $7 per unit and fixed costs of $105,000. In 2013, the selling price and the variable cost per unit did not change, but the break-even point increased to $420,000.
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Question 2 In the month of June, Barbara's Beauty Salon gave 2,700 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $18,000 and variable costs were 70% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin (in dollars) $ Contribution margin per unit $ Contribution margin ratio % Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even point (in dollars) $ Break-even point (in units) units Compute the margin of safety in dollars and as a ratio. (Round answers to 0 decimal places, e.g. 125.) Margin of safety (in dollars) $ Margin of safety (ratio) %
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Black Brothers Furniture Corporation incurred the following costs. Instructions Identify the costs above as variable, fixed, or mixed.
Black Brothers Furniture Corporation incurred the following costs.
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Instructions
Identify the costs above as variable, fixed, or mixed.
1. | Wood used in the production of furniture. | |
2. | Fuel used in delivery trucks. | |
3. | Straight-line depreciation on factory building. | |
4. | Screws used in the production of furniture. | |
5. | Sales staff salaries. | |
6. | Sales commissions. | |
7. | Property taxes. | |
8. | Insurance on buildings. | |
9. | Hourly wages of furniture craftsmen. | |
10. | Salaries of factory supervisors. | |
11. | Utilities expense. | |
12. | Telephone bill. |
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