For the coming year, Baker Company anticipates a unit selling price of $450, a unit variable cost

Question:

For the coming year, Baker Company anticipates a unit selling price of $450, a unit variable cost of $325, and fixed costs of $950,000.

Instructions

1. Compute the anticipated break-even sales (units).

2. Compute the sales (units) required to realize income from operations of $175,000.

3. Construct a cost-volume-profit chart, assuming maximum sales of 16,000 units within the relevant range.

4. Determine the probable income (loss) from operations if sales total 8,000 units.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

See More Books

Question Posted: Jul 17, 2012 07:24 AM

See More Questions

For the coming year, Tolstoy Company anticipates a unit selling price of $100, a unit variable cost of $30, and fixed costs of $2,100,000. Instructions 1. Compute the anticipated break-even sales...
For the coming year, Tolstoy Company anticipates a unit selling price of $100, a unit variable cost of $30, and fixed costs of $2,100,000. Instructions 1. Compute the anticipated break-even sales...
For the coming year, Bernardino Company anticipates a unit selling price of $85, a unit variable cost of $15, and fixed costs of $420,000. Instruction 1. Compute the anticipated break-even sales...
What's New 14 el.alphacollege.ca 500 Alpha College E-learning of My Courses Development is informal with a loner-term focus Select one: O True O False Training is formal with a short-term focus....
Select the response that completes the following statement correctly. The full disclosure principle dictates that: (a) Financial statements should disclose all assets at their cost. (b) Financial...
Osomo Ltd is a manufacturing organisation. On 31 December 2014 the following information was extracted from the company's books. Additional information: The company transfers goods from the...
Blood contains both positive and negative ions. In a certain patient being tested, the speed of these ions in a large artery is measured at $0.60 \mathrm{~m} / \mathrm{s}$. The patient is placed in...
At year- end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $ 975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1,...
11 12 13 14 Height of a plant is regulated by: a) DNA which is directly influenced by growth hormone. b) Genes which regulate the proteins directly. Growth hormones under the influence of the enzymes...
It took MegaTech, Inc. 100,000 labor-hours to produce the first of several oil-drilling rigs for Antarctic exploration. Your company, Natural Resources, Inc., has agreed to purchase the fifth (steady...
Castellino Company, operating at full capacity, sold 80,000 units at a price of $70.75 per unit during 2008. Its income statement for 2008 is as follows: The division of costs between fixed and...
Last year, Taylor Inc. had sales of $100,000, based on a unit selling price of $20. The variable cost per unit was $10, and fixed costs were $50,000. The maximum sales within Taylors relevant range...
According to the Bureau of Transportation statistics, on-time performance by the airlines is described as follows: Action % of Time On time ........................70.8 National Aviation System delay...
The Department of Health publishes guidance to those recording the costs of health service activities. This is an extract from the Guidance manual. Costing The principles for costing in the NHS are...
Which special journal handles the following types of transactions? a. Cash sales b. Credit sales c. Receipts from debtors d. Payments to creditors e. Cash purchases f. Credit purchases
Jupiter Ltd uses multi-column cash receipts and cash payments journals, and maintains control accounts for accounts receivable and accounts payable, supported by subsidiary ledgers. Balances in the...
The CFO of Olaf Limited has prepared a schedule based on her past experience indicating the following percentages of accounts receivable that have been written off as bad. The present balance of the...
With respect to the internal control over cash, provide an example of each of the following: a. Independent checks and reviews b. Approval of transactions c. Matching documents d. Prenumbering and...
This activity is a superlative exercise for illustrating the highly complex and often intense dynamics between two groups when: 1. Both teams are striving to outperform the other 2. The temptation to...
A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December 31, 2013, follows (in thousands): ADDITIONAL INFORMATION 1. Pen acquired its 80 percent interest...
Assume that $u:[0, \infty) ightarrow \mathbb{R}$ is positive and improperly Riemann integrable. Show that $u$ is also Lebesgue integrable.
Use the information for IBM from BE21-6. Assume the direct-financing lease was recorded at a present value of $150,000. Prepare IBMs December 31, 2011, entry to record interest.
Jennifer Brent Corporation owns equipment that cost $80,000 and has a useful life of 8 years with no salvage value . On January 1, 2011, Jennifer Brent leases the equipment to Donna Havaci Inc. for...
Indiana Jones Corporation enters into a 6-year lease of equipment on January 1, 2011, which requires 6 annual payments of $40,000 each, beginning January 1, 2011. In addition, Indiana Jones...
MR Green is one of the resident for who you take care in a nursing home .He is recovering from a stroke and has a pressure ulcer . In addition he is disoriented and confuse . However he can feed...
What does the accountability of prescriptive theory? b. What does the accountability of capture theory? c. What does the accountability of normative accounting theory? d, What does the accountability...
Describe the connections between leader accountability and how leaders hold people accountable for their actions? sustainability through accountability.

For the coming year, Baker Company anticipates a unit selling price of $450, a unit variable cost

Question:

Step by Step Answer:

1 2 3 4 50000 8000 450 325 95000...View the full answer

Accounting

Students also viewed these Managerial Accounting questions