Pittsburg Tar Co. had the following income statement for 2013: a. Compute the break-even point using the
Question:
a. Compute the break-even point using the equation approach.
b. Prepare a CVP graph to reflect the relationships among cost, revenue, profit, and volume.
c. Prepare a profit-volume graph.
d. Prepare a short explanation for company management about each of the graphs.
e. Prepare an income statement at break- even point using variablecosting.
Transcribed Image Text:
s 240,000 Sales (30,000 gallons X $8) Variable cost Production (40,000 gallons X $3) Selling (30,000 gallons X $0.50) $120,000 15,000 (135,000) S 105,000 Contibution margin Fixed cost Production S 46,000 6,200 Seling and administratiwe Income before tax Income tax (40%) Net income (52,200) S 52,800 (21,120) 31,680
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
a The breakeven point is the point at which total revenue equals total cost Fixed costs Contribution ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111971724
9th edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Question Posted:
Students also viewed these Managerial Accounting questions
-
Pittsburg Tar Co. had the following income statement for 2010: a. Compute the break-even point using the equation approach. b. Prepare a CVP graph to reflect the relationships among cost, revenue,...
-
The DesMaris Company had the following income statement for the month of November 2018: DesMaris Company Income Statement For the Month of November 2018 Sales ($60 10,000) $600,000 Cost of goods...
-
The Alexander Company reported the following income statement for 2013: Assume that all depreciation and 75 percent of the firm's selling, general, and administrative expenses are fixed costs and...
-
You have $300,000 saved for retirement. Your account earns 6% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years? $ Get help: Video
-
The graph of the function f is shown below. The graph of g(x) = - 1/2 f(x) + 1 is which of the following? a. b. c. d. 3-2 y: 54321 5 y: 5432 2345 1 y 5432 5 4. 3211.2.3
-
Butadiene, C4H6, is a planar molecule that has the following carbon-carbon bond lengths: (a) Predict the bond angles around each of the carbon atoms and sketch the molecule. (b) Compare the bond...
-
Jasper Gates, sales manager of Circuit Computers Ltd, was given the following budget performance report for selling expenses in the marketing software department for the month of April 2025. The...
-
Net sales for the year were $900,000 and cost of goods sold was $558,000 for the company's existing products. A new product is presently under development and will have an expected selling price of...
-
If the equal tensions T in the pulley cable are 520 N, express in vector notation the force R exerted on the pulley by the two tensions. Determine the magnitude of R. Answer: y 76 T x T R=(i i+ j) N...
-
Vulcan Flyovers offers scenic over flights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: The...
-
Llano Lamps has the following revenue and cost functions: Revenue = $ 70 per unit Cost = $ 90,000 + $ 40 per unit a. What is the break-even point in units? b. What is the break-even point in dollars?
-
Salina Sports Wear has designed a new athletic suit. The company plans to produce and sell 30,000 units of the new product in the coming year. Annual fixed costs are $600,000, and variable costs are...
-
Using the non-Fokker-Planck arguments outlined in the text, compute an estimate of the electron-electron equilibration rate, and show that it agrees with the Fokker- Planck result, Eq. (20.23a), to...
-
On January 1, 2023, Amanda company acquires a new building for $870,000,000 cash. The building will be used as a showroom. The company also spent $120,000 in legal fees to transfer the property of...
-
Solve the equation. 2(n-6)-(3-5n) = 6n
-
STOCK APPRECIATION RIGHTS Universal Communications granted 10 million SARs to key executives on January 1, 2016. Upon exercise, the SARs entitle executives to receive cash or stock equal in value to...
-
Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2024 $ 115 Projected benefit obligation, January 1, 2024 500 Plan assets (fair value), January 1, 2024 600...
-
How can the closing entry process in healthcare accounting help in assessing the financial performance and profitability of healthcare organizations? And also describe what challenges or complexities...
-
How many significant digits are in the exact number 155?
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
Identify the benefits of good customer service and customer retention.
-
What is outsourcing? Why is the practice heatedly debated in the United States?
-
What is a scarce resource? Why is an organization's most scarce resource likely to change from time to time?
-
What is the objective of managing the sales mix of products? What are the major factors that influence sales mix?
-
Have a brief introduction, discussion of the topics/points, and a conclusion.what you have learned during the course( Organizational Dynamics and Effectiveness).Their relevance to your career....
-
Using the article provided below, you are required to analyse the company information to define the business goals and evaluate whether the supply chain is a strategic fit with the business and...
-
Create output that shows a scatterplot with a line of best fit for your data. Explain what a line of best fit is? Submit both the output file (SPSS) as well as your Word summary.
Study smarter with the SolutionInn App