Question: Lagimodiere Industry s unit variable costs are 4 5 % of the unit selling price. Annual fixed costs are $ 1 . 5 million. a

Lagimodiere Industrys unit variable costs are 45% of the unit selling price. Annual fixed costs are $1.5 million.
a. What total revenue results in an income of $250,000?
b. Calculate the break-even dollars for Lagimodiere Industry.
c. If revenues exceed the break-even dollars by 20%, determine the net income.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a To get the total revenue resulting in an income of 250000 we use the f... View full answer

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!

Q:

Part II In this part, you will apply the cost-volume-profit analysis in Chapter 18 to your company. Assume that all the numbers are budgeted for next year, 2020.4. Determine the price of your product...

Q:

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Q:

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Q:

1. Answer each item below: 1. In September, Smith Company had the following financial statement amounts related to producing 1,000 units: Direct materials (VC) $30,000 Depreciation expense(FC) 12,000...

Q:

Jones Soda, Inc. (JSDA) develops, produces, and distributes premium beverages in the United States and internationally. JSDA's strategy is to focus on their core brand, Jones Soda, while also...

Q:

The second picture are the rest of the multiple choice answers to #12 Difficulty: 3 Hard Learning Objective: 16-C3 Describe accounting for production activity and preparation of a process cost...

Q:

Winston Co. had two products code named X and Y. The firm had the following budget for August: Sales Variable costs Contribution Margin Fixed Costs Operating income Selling Price per unit Product...

Q:

Question 6 8 pts Musky Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000. How much sales revenue will Musky report at its break-even point in dollars? O...

Q:

Cover up the schedule you constructed as your answer to 44.1 (i) and look instead at the break-even chart constructed as the answer to 44.1 (ii). Answer the following: (a) What are the total costs at...

Q:

Hedges Ltd has fixed costs of 8,000. The variable costs are 4 per unit. The revenue (selling price) is 6 per unit. You are required (i) to draft a schedule as follows filling in the columns (a) to...

Q:

On January 1, 2017, Alison, Inc. paid $85,700 for a 40 percent interest in the common stock of Holister Corporation. This investee had assets with a book value of $256,000 and liabilities of $83,500....

Q:

Innovate Ltd specialises in the development and production of innovative products. As their products usually have relatively short life cycles, the company must generate a continuous stream of new...

Q:

Encuentre la soluci n de manera detallada para la siguiente ecuaci n diferencial considerando que la soluci n debe ser continua. d y d t ( t ) y = 4 t , con y ( 0 ) = 3

Q:

Concord rnInc. sells 1,440 common shares on subscription basis at $65 per share on June 1 and accepts 40% down payment. On December 1, Concord rncollect the remaining 60% and issues the shares....

Q:

Assume a $1 million Treasury Bill futures contract with an index price of 97.45 (and a yield on a bank discount basis of 2.55%), the dollar discount for the 13-week Treasury bill to be delivered with...

Q:

The City of Pelican Point issued $875,000 of refunding bonds at a 1% premium. bond issuance costs were $13000; $869000 is to be used to retire the existing bonds. other financing uses will be debited...

Q:

Consider the CSL 2019/20 Annual Report. Source 1: CSL Annual report 2019/20 https://www.csl.com/-/media/csl/documents/annual-report-docs/csl-ltd-annual-report-2020-full.pdf Source 2: Report summary...

Q:

A Freeport localrn government secured a six-month, $450,000 loan at 5% interest from a local lending institution to finance a project at a county-owned park. The loan transaction took place one month...

Q:

Determine whether f ' ( 0 ) exists. f ( x ) = { x s i n ( 4 x ) i f x 0 0 i f x = 0 f ' ( 0 ) does exist. f ' ( 0 ) does not exist. Need Help?

Q:

Below are costs and measures of activity in a variety of organizations. Required: Classify each cost as variable or fixed with respect to the indicated measure of activity by placing an X in the...

Q:

For many years, Gorski Company manufactured a single product called a mono-circuit. Then, three years ago, the company automated a portion of its plant and at the same time introduced a second...

Q:

What arguments can be advanced in favor of treating fixed manufacturing overhead costs as period costs?

Q:

Select a country that was colonised and examine what you believe are the positive and negative legacies of colonialism.

Q:

What are the causes of these global differences and why do they persist? The material examined in the above sections has illustrated the changing range of variables used to measured development. It...

Q:

Why is the youth unemployment rate higher than the total unemployment rate (i.e. for all age groups)? The material examined in the above sections has illustrated the changing range of variables used...