Jefferson, Ic. Assume Jefferson, Inc. produces tennis balls and sells a 24 can case (72 balls)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jefferson, Ic. Assume Jefferson, Inc. produces tennis balls and sells a 24 can case (72 balls) for $75 per case. Variable Costs per Case Fixed Costs per Month A. Determine the Unit Contribution Margin and the monthly break-even point in units Direct Materials Direct Labor Variable Overheads $ 30,000 Selling & Adminstrati $ 9,000 $ 6,000 $ 45,000 $ 12.00 8.00 Salaries Break-even point = Fixed Cost $ $ 10.00 $ 30.00 Fixed Overheads Unit Contribution Margin $ 45,000 [$ - $) Break-even point = Fixed Cost Unit Contribution Margin B. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 Required dollar sales : Fixed Costs plus Desired profit Contribution Margin Ratio Fixed Costs plus Desired profit Contribution Margin Ratio Required dollar sales Required Unit Sales = ixed Costs + Desired before-tax prol Contribution Margin Required dollar sales = ( $ + $)!( $/$) ($ } $ ] = A. Determine the Unit Contribution Margin and monthly break-even point in units C. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 D. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6,300 Check Sales $I$ = cases sold Variable Costs cases *$ Contribution Margin Fixed Costs Before-tax Profit $11,250 C. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6300 Desired before-tax profit (Gross up) = $6,300/ (1-0.30) = $9,000 Required dollar sales Fixed Costs + Desired before-tax profit Contribution Margin Ratio |= ( $ + $ ] } 0.X = $ Unit sales price = Desired Unit Sales X Units $4 Jefferson, Ic. Assume Jefferson, Inc. produces tennis balls and sells a 24 can case (72 balls) for $75 per case. Variable Costs per Case Fixed Costs per Month A. Determine the Unit Contribution Margin and the monthly break-even point in units Direct Materials Direct Labor Variable Overheads $ 30,000 Selling & Adminstrati $ 9,000 $ 6,000 $ 45,000 $ 12.00 8.00 Salaries Break-even point = Fixed Cost $ $ 10.00 $ 30.00 Fixed Overheads Unit Contribution Margin $ 45,000 [$ - $) Break-even point = Fixed Cost Unit Contribution Margin B. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 Required dollar sales : Fixed Costs plus Desired profit Contribution Margin Ratio Fixed Costs plus Desired profit Contribution Margin Ratio Required dollar sales Required Unit Sales = ixed Costs + Desired before-tax prol Contribution Margin Required dollar sales = ( $ + $)!( $/$) ($ } $ ] = A. Determine the Unit Contribution Margin and monthly break-even point in units C. Determine the monthly dollar sales required for a monthly profit (before taxes) of $11,250 D. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6,300 Check Sales $I$ = cases sold Variable Costs cases *$ Contribution Margin Fixed Costs Before-tax Profit $11,250 C. Assuming a 30% income tax rate, determine the monthly unit sales required to produce a profit (after-tax) of $6300 Desired before-tax profit (Gross up) = $6,300/ (1-0.30) = $9,000 Required dollar sales Fixed Costs + Desired before-tax profit Contribution Margin Ratio |= ( $ + $ ] } 0.X = $ Unit sales price = Desired Unit Sales X Units $4
Expert Answer:
Answer rating: 100% (QA)
calculations E F 3 1 Unit contribution margin 4 5 6 sale... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
The text suggests that comparing the unit contribution margin of a sports car with an entry-level vehicle is like comparing apples and oranges, but that comparing the contribution margin ratios is a...
-
If fixed costs increase, but the unit contribution margin stays the same, can we calculate the additional volume needed to break even by dividing the change in fixed costs by the unit contribution...
-
Explain how the unit contribution margin can be used to determine the unit sales required to break even.
-
5.Construct a Histogram for the frequency distribution below containing record high temperatures for each of the 50 states. Class boundaries Freq 99.5-104.5 104.5-109.5 109.5-114.5 114.5-119.5...
-
Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within...
-
Calculate the enthalpy change when 245 g of ice melts. Strategy The H fus value in Table 9.3 is in J/mol, so the amount of ice must be converted into moles. Multiplying the number of moles by H fus...
-
On the Internet, find a recent annual report for the company Merck \& Co., Inc. Based on information in that report, determine the following: (a) The nature of the business of Merck. (b) The new...
-
(a) Estimate whether the following pairs of scores for X and Y reflect a positive relationship, a negative relationship, or no relationship. Hint: Note any tendency for pairs of X and Y scores to...
-
Using BLS data, make a table comparing the changes in employment, unemployment rate, and the level of average hourly wage since the onset of the Great Recession in 2008. Discuss three specific ways...
-
Let's pretend you have just received a check for $1,500 from a long-lost relative. With this money, you decide that you would like to remodel a room in your home. The room measures 16 feet 6 inches...
-
For the whole of this question, assume there are no driving or damping forces and that I = *E* kg m and k, = 40 Nm/rad. a) Calculate the natural frequency of oscillation in hertz of the torsional...
-
Szechwan Gardens, Inc. florist chain has a tax rate of $40 \%$, and they have some bonds outstanding (from an earlier store expansion) with a yield of $8 \%$. The CFO determined that the "best"...
-
In replacement problems the "life" of an asset is defined three ways. What are the three types, and why is the difference important?
-
To build out a complete set of services, a lab manager would like to add a small e-beam deposition machine that costs about $\$ 60,000$ to be more full-service to the lab customers as well as adding...
-
For Problem 9.19 a special "Tiger Team" has identified a different use for the $\$ 60 \mathrm{~K}$ that involves an incremental profit and cash flow (before tax and depreciation allowance) of $\$...
-
There are three general categories of capital budget scenarios: replacement, expansion, and investment in a NewCo. Describe the overall decision-making context for each. How do they draw on similar...
-
Persevering through difficult times is an example of: Question 10Select one: a. respect b. integrity c. etiquette d. commitment
-
The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this textbook. Instructions (a) Does East plats report any investments on its statement of...
-
Raneri Trophies Inc. uses a job order cost system for determining the cost to manufacture award products (plaques and trophies). Among the companys products is an engraved plaque that is awarded to...
-
A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an estimated useful life of 40 years. Determine (a) The...
-
Lisa Duncan, a junior in college, has been seeking ways to earn extra spending money. As an active sports enthusiast, Lisa plays tennis regularly at the Phoenix Tennis Club, where her family has a...
-
Describe what sexual harassment is and what forms it can take.
-
Explain public policies that protect employees from unlawful discharge.
-
Discuss under what conditions unemployment compensation can be denied to a claimant.
Study smarter with the SolutionInn App