Based on the income statements shown below, which division h…
Based on the income statements shown below, which division has the cost structure with the highest operating leverage? Soft Drinks Bottled Water Fruit Juices Revenue $ 50,000 $ 50,000 $ 50,000 Variable costs (10,000) (5,000) (30,000) Contribution margin 40,000 45,000 20,000 Fixed costs (30,000) (35,000) (10,000) Net income $ 10,000 $ 10,000 $ 10,000
Read DetailsHarcourt Manufacturing (HM) has the capacity to produce 13,6…
Harcourt Manufacturing (HM) has the capacity to produce 13,600 fax machines per year. HM currently produces and sells 8,800 units per year. The fax machines normally sell for $280 each. Modem Products has offered to buy 3,800 fax machines from HM for $150 each. Unit-level costs associated with manufacturing the fax machines are $51 each for direct labor and $76 each for direct materials. Product-level and facility-level costs are $68,000 and $83,000, respectively. How much would profit increase (decrease) if HM accepted this special order?
Read DetailsU-RIDE, Incorporated currently produces the electric engines…
U-RIDE, Incorporated currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offered to sell the electric engines to U-RIDE at a price of $340 each. Current production information follows: Unit-level material and labor $275 Facility-level depreciation of manufacturing equipment $7,000 /month Product-level engine production supervisor’s salary $4,000 /month Annual facility-level utilities $25,000 U-RIDE is currently operating profitably producing and selling 4,000 engines a year using 70% of its manufacturing capacity. Which of the following is true?
Read DetailsPurchases on account are given below: October November Dec…
Purchases on account are given below: October November December 65,000 75,000 85,000 55% of the month’s purchases will be paid in the month of the purchase; the remaining 45% will be paid in the following month. How much will the cash payments for purchases be in November?
Read DetailsHilliard Company budgeted the following transactions for Apr…
Hilliard Company budgeted the following transactions for April Year 2: Sales (75% collected in month of sale) $ 220,000 Cash Operating Expenses 107,000 Cash Purchases of Investment 77,000 Cash Payment of Debt 17,000 Depreciation on Operating Assets 16,000 The beginning cash balance was $54,000. The company desires to have a $41,000 ending cash balance. The surplus (or shortage) of cash before considering any borrowings in April would be:
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