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Question
A firm produces and sells a product with a contribution margin of $32 per unit. The firm is presently selling 90,000 units and earning $240,000 in after-tax income. Taxes are $80,000 at a 25% tax rate. If the firm desires to increase its after-tax income to $300,000, how many more units must it sell?
Answer
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Related questions
Q:
What are the four steps in the effective management of variance analysis?
Q:
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$12 per finished unit Actual direct materials used
243,000 lbs. Actual finished units produced
40,000 units Actual cost of direct materials used
$483,570 A. $6,000 favorable.
B. $3,570 unfavorable.
C. $2,430 favorable.
D. $6,000 unfavorable.
E. $3,570 favorable.
Q:
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Q:
When recording the journal entry for labor, the Goods in Process Inventory account is
A. Debited for standard labor cost.
B. Debited for actual labor cost.
C. Credited for standard labor cost.
D. Credited for actual labor cost.
E. Not used.
Q:
Adams, Inc. uses the following standard to produce a single unit of its product: overhead (2 hrs. @ $3/hr.) $ 6. The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000, and 24,000 units produced. The overhead volume variance is:
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Q:
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$2 per unit Actual units produced ..
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B. $1,295F.
C. $2,400U.
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Q:
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45,000 Actual rate per hour ..
$15 Standard rate per hour ..
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B. $28,000 unfavorable.
C. $45,000 unfavorable.
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Q:
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45,000 Actual rate per hour ..
$15 Standard rate per hour ..
$14 Standard hours for units produced ...................
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B. $28,000 favorable.
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Q:
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Q:
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Q:
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Product B Sales............................................................
$80,000
$96,000 Direct materials............................................................
3,000
6,000 Direct labor............................................................
30,000
45,000 Other cash operating expenses............................................................
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9,000 New equipment costs............................................................
75,000
100,000 Estimated useful life (no salvage)............................................................
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Q:
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Toys
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$1,000,000
$600,000
$500,000 Cost of goods sold.........................................
(1,260,000)
(500,000)
(400,000)
(360,000) Gross profit.........................................
840,000
500,000
200,000
140,000 Direct expenses.........................................
(420,000)
(200,000)
(100,000)
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(350,000)
(100,000)
(75,000)
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$ 200,000
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Q:
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Q:
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Q:
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Q:
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Q:
A favorable variance for a cost means that when compared to the budget, the actual cost is ____________________ than the budgeted cost.
Q:
A standard that takes into account the reality that some loss usually occurs with any process under normal application of the process is known as a _______________ standard.
Q:
Companies promoting continuous improvement strive to achieve _____________ standards by eliminating inefficiencies and waste.
Q:
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Q:
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Q:
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Q:
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