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Alchen [17]
3 years ago
5

ChowMein Company is the exclusive Montana distributor of lawn mowers for a small manufacturing company. It sells only one model

at $600 per unit and for which ChowMein pays $250. ChowMein's other variable costs amount to $50 per unit. Fixed costs are $2,000. In April, ChowMein sold 15 lawn mowers and it sold 20 in May.
Required:
Calculate the following values:

a. Monthly break-even point in sales dollars
b. Monthly break-even point in units
c. Monthly income for April
d. Monthly income for May
e. Margin of safety for April
Business
1 answer:
frozen [14]3 years ago
4 0

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

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Answer:

$30,800

Explanation:

Dr Work in progress 30,800

Cr Wages payable 30,800

Direct labour hours × Per direct labour hour

Job 456

580×15 = 8700

Job 777

850×26= 22100

22,100 + 8,700 = 30,800

7 0
2 years ago
Why should you prepare some questions to ask during the interview?
Monica [59]

Answer:

A good interview question does two things: It lets the interviewer know you put some thought into your questions. It increases your knowledge allowing you to assess further if this position and company are the right fit for you.

ex: What are the next steps in the interview process?

7 0
2 years ago
Accounts receivable $29,500
Alecsey [184]

Answer:

Company's current ratio is 2.4

Explanation:

Current ratio = Current assets / Current liability

Current ratio = 46,880/19,500

Current ratio = 2.404 =2.4

<u>WORKINGS</u>

Current assets:

Account Receivable= 29,500

Office supplies 4,800 (Assuming they are stocks of supplies)

Prepaid insurance 4,680

Cash 7,900

Total current assets=46,880

Current liabilities

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Unearned services revenue 6,000

Total current liability= 19,500

6 0
3 years ago
In its income statement for the year ended December 31, 2022, Whispering Winds Corp. reported the following condensed data. Oper
vagabundo [1.1K]

The Multiple Income Statement is $127,000.

<h3>Multiple Income Statement</h3>

Multiple Income Statement For the Year Ending Dec. 31, 2022

Particulars Amount ($)

Net sales 2,199,000

Less: Cost of goods sold 1,255,000

Gross profit 944,000

(2,199,000-1,255,000)

Less: Operating expenses 719,000

Operating income 225,000

(944,000-719,000)

Other revenue:

Interest revenue 32,000

Other expenses and losses:

Interest expense 70,000

Add: Loss on disposal of plant assets 16,000

Total other expenses and losses 86,000

(70,000+18,000)

Income before tax  171,000

(225,000+32,000-86,000)

Less: Income tax expense 44,000

Net income 127,000

(171,000-44,000)

Therefore the Multiple Income Statement is $127,000.

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5 0
2 years ago
Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typica
tangare [24]

Answer:

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts is $0.185

total annual cost = $3.914

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts is $0.125

total annual cost = $1.06

l

Explanation:

For the cost of LED and durability

it is require to use a light fixture 500 hours per year

60-watt incandescent light bulb costs $.37 and lasts 1,000 hours. that mean, its last for 2years before buying a new one.

And for a 15-watt LED,  costs $3.00 and lasts for 12,000 hours, thats means it will last for 24 years before purchase of another.

assuming, will are using the 60watts for 24years, a cost of  $.37*12times = $4.44 will be use for buying.

therefore, a 15 watts LED is more cheaper.

For the current charges of LED

for 60watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

60 watts  = 1hour  = (60*0.133/1000) = $0.0068

it is said that, the consumption is for 500 hour per year.

therefore, 60watts used per year = 500*0.0068 = $3.39

return of 10% =0.339.

total cost of watts for 500hr for a year = 3.39+0.339 = $3.729

Annual wattage cost of 60 watts is $3.729

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total annual cost = $3.914

for 15 watts

if A kilowatt-hour of electricity costs $.113 =

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it is said that, the consumption is for 500 hour per year.

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return of 10% =0.085.

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total annual cost = $1.06

6 0
3 years ago
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