Answer:
ChowMein Company
a. Monthly break-even point in sales dollars = Fixed Costs/Contribution margin
= $2,000/50%
= $4,000
b. Monthly break-even point in units = Fixed Costs/Contribution per unit
= $2,000/$300
= 6.67 or simply 7 units
c. Monthly income for April:
Sales ($600 * 15) = $9,000
Variable cost ($300 * 15) = $4,500
Contribution = $4,500
Fixed Costs = $2,000
Income = $2,500
d. Monthly income for May:
Sales ($600 * 20) = $12,000
Variable cost ($300 * 20) = $6,000
Contribution = $6,000
Fixed Costs = $2,000
Income = $4,000
e. Margin of Safety for April:
Sales in April minus Break-even Sales
= $9,000 - $4,000
= $5,000
Explanation:
Data and Calculations:
Unit selling price = $600
Unit variable costs = $300 ($250 + 50)
Unit Contribution = $300
Contribution margin = 50% ($300/$600 * 100)
Fixed Costs = $2,000
April sales = 15
May sales = 20
Answer:
On the transfer of the building,
Appreciation of building = FMV - Adjusted Basis
= $50,000 - $10,000
= $40,000
WFI has taxable transaction and gain recognition of $40,000.
On the transfer of the land,
Appreciation of land = FMV - Adjusted Basis
= $150,000 - $90,000
= $60,000
WFI has taxable transaction and gain recognition of $60,000.
A<span>n officer conducting a lineup should allow the defense attorney at the lineup to do all but B. control any part of the proceedings.
This is what the officer himself or herself is doing - the defense attorney is not allowed to do such a thing. However, they can passively or actively observe the proceedings, take notes, or just record the proceedings in order to revise them later on.
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Answer:
$4,269,950
Explanation:
The Cost of an asset include Purchase Cost and other costs directly incurred to put the asset in the location and condition intended for use by management.
Calculation of Cost of the Building :
Architect’s fees $46,800
Insurance $3,600
liability insurance $3,900
Excavation $15,660
Contractor $4,200,000
Total $4,269,950
Therefore,
The cost of the building that should be recorded by Wilson Co. is $4,269,950
Answer:
1. TIE ratio = EBIT / Interest expense
EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate
= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%
= 187428.57143
= $187,428.57
TIE ratio = $187,428.57 / ($800,000 x 8%)
TIE ratio = $187,428.57 / $64,000
TIE ratio = 2.92857
TIE ratio = 2.93
2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)
= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)
= 0.093714285
= 9.37%
