Question: 1. What is Nealon's variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution margin ratio?

1. What is Nealon's variable cost ratio? Enter your answer as

1. What is Nealon's variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the contribution margin ratio? Enter your answer as a decimal value rounded to two decimal places. (Express as a decimal-based amount rather than a whole percent.) 2. Suppose Nealon's actual revenues are $190,000 greater than budgeted. By how much will before-tax profits increase? Calculate the answer without preparing a new income statement. s 3. How much sales revenue must Nealon earn in order to break even? Round your answer to the nearest dollar. s What is the expected margin of safety? Round your answer to the nearest dollar. 5 4. How much sales revenue must Nealon generate to earn a before-tax profit of $50,000 ? Round your answer to the nearest dollar. 5 How much sales revenue must Nealon generate to earn an after-tax profit of $35,000 ? Round your answer to the nearest dollar. 5 Prepare a contribution margin income statement to verify the accuracy of your last answer. Round your answers to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year...

Problem 16.34 Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement forthe...

Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Nealon Company runs a driving range and golf shop. The budgeted income statement for the coming year...

PLEASE ANSWER NUMBER 4B AND CONTRIBUTION MARGIN INCOME STATEMENT WITH THE CORRECT ANSWER FOR 4 B Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety...

Nealon Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 781,200 Contribution margin $458,800 Less:...

Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Each division is evaluated as a profit center. Data for each division for last year...

Question 2: PLEASE answer all blank boxes and required parts CLEARLY and CORRECTLY! Also, please please double check all work before submitting! I will ONLY thumbs up if ALL parts are correct,...

The adjusted account balances (assume normal balance) of the Quick-E Delivery Service at October 31 are as follows: Cash 53,600 Accounts receivable 6,000 Supplies 22,000 Prepaid insurance Equipment...

Consider the figure below in which TCP a sender and receiver communicate over a connection in which the sender-to-receiver segments may be lost. The TCP sender sends initial window of three segments...

According to the residual distribution model, distributions ( dividends ) = net income minus retained earnings needed to finance new investiments.

Skills necessary for success in marketing include Multiple select question. analytical thinking advertising industry experience infallibility ability to work with others

1. Should the job evaluation depend on an appraisal of the jobholders performance? Why? Why not?pg 87

2. Is Jack Carters policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?pg 87

2. Our company now uses a point method to evaluate jobs for pay purposes, and each resulting job class also has a rate range associated with it. Sales associates are now paid a salary, not based on...