CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $305,040

Question:

CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $305,040 and variable cost per dollar of sales is $0.40.

1. What is the break-even point per month in sales dollars?

2. What level of sales dollars is needed for a monthly profit of $59,340?

3. For the month of July, the marina anticipates sales of $1,010,000. What is the expected level of profit?

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

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

See More Books

Question Posted: Apr 13, 2012 06:47 AM

See More Questions

Clydes Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40. Required a. What is the break-even point per month in sales dollars? b. What level...
Clydes Marina has estimated that fixed costs per month are $303,300 and variable cost per dollar of sales is $0.40. Required What is the break-even point per month in sales dollars?
Clydes Marina has estimated that fixed costs per month are $303,300 and variable cost per dollar of sales is $0.40. Required a. What is the break-even point per month in sales dollars? b. What level...
Required A. Calculate Mr. Worthy's minimum employment income for the current year. B. Assume Mr. Worthy had only $4,000 in commission income in addition to his $65,000 salary. Calculate Mr. Worthy's...
Describe the audit opinion formulation process. What are the key steps within each of the five phases in the process?
Suppose observer B in Figure 14.18 carries a unit of two synchronized clocks that is identical to the unit that is at rest relative to A. Observer B begins speeding up when the clocks in her...
With reference to Exercise 4.87, find the mean and the variance of the distribution of the number of microelectrodes made from glass tubing using (a) the probabilities obtained in that exercise; (b)...
1. How do information technologies contribute to the business success of Sew What? Inc.? Give several examples from the case regarding the business value of information technology that demonstrate...
A Napa wine maker faces a variable cost of $6.75 per bottle, and makes a 50% margin when selling to a wholesaler. The wholesaler obtains a 25% margin by simply reselling to wine stores. Wine stores...
In Problem 7.3, if no bedrock was present for at least 4 m below the foundation, determine the ultimate bearing capacity. Problem 7.3 A 1.5 m 2.0 m rectangular foundation is placed at 1.0 m depth in...
Lee Corp. is looking to introduce a new product with an 80% cumulative learning curve for production batches of 500 units. The variable production and selling costs, all subject to learning, are $20...
What is the formula to the problem: A firm purchases an asset falling into the 3-year MACRS category for $78,000. The second year's depreciation expense for this asset would be?
Derive results (i), (ii), and (iii) in the last paragraph of Box 14.4. Box 14.4. BOX 14.4. STREAM FUNCTION FOR A GENERAL, TWO-DIMENSIONAL, INCOMPRESSIBLE FLOW Z Consider any orthogonal coordinate...
If an insurance company doesn't quickly approve a procedure and release funds, what can the practice do to expedite and improve cash flow?
What do you think about a tax code that even the IRS and CPA's must look outside the IRS Code to find answers? Explain.
In a contribution action, a court will allocate responsibility to pay clean up costs according to "equitable factors." Such factors consist of what?
what degree should these corporations be held accountable for the health consequences associated with their products in the markets they enter? Describe.
what is the meaning of minimum lease payment payments over the lease term until the bargain purchase option is exercised?
Am I aware of the basic framework of a strategic communication plan?
Why is it necessary to study the diffusion of molecules in biological systems?
Predict the time of revolution for two bodies of mass m 1 and m 2 in empty space revolving about each other under their mutual gravitational attraction.
Holdaway Company is preparing financial statements for the calendar year 2012. The following totals for each account have been verified as correct: Office Supplies on Hand. . . . . . . . . . . . . ....
Use the following information to prepare an income statement for Fairchild Corporation for the year ended December 31, 2012. You should show separate classifications for revenues, cost of goods sold,...
Orange County Bank has three employees, Albert Myers, Juan Moreno, and Michi Endo. During January 2012, these three employees earned $6,000, $4,200, and $4,000, respectively. The following table...
EnviroSpecialists is an environmental engineering company that provides assessments of the effect of new construction and proposed development on the surrounding landscape. Customers include large...
Discuss the impact of cross-cultural allusions in global literature, particularly in terms of fostering understanding and dialogue between diverse communities
The correct entry should be Debit: Armstrong, Capital $48,000 Credit: Cash $58,000 Debit: Jackson, Capital $5,000 Debit: Tanner, Capital $5,000

CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $305,040

Question:

Step by Step Answer:

1 Computation of the Break Even point in month Sales dollars Given information Fixed costs per month ...View the full answer

Managerial Accounting

Students also viewed these Managerial Accounting questions