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3 years ago

Billings Company has the following information available for September 2017.

Business

1 answer:

kumpel [21]3 years ago

7 0

Answer:

Part a

Contribution Margin = 29.95% (2 d.p)

Part b

Billing Company

CVP Income for as at September 2017

Total Per Unit

$ $

Sales 295704 444

Less Variable Costs (138084) (311)

Contribution 157620 133

Fixed Costs (59850) 89.86

Net Income 97770 43.14

Part c

Billing`s break even point is 450 units

Part d

Billing Company

CVP Income for as at September 2017 - Break Even Point

Total Per Unit

$ $

Sales 199800 444

Less Variable Costs (139950) (311)

Contribution 59850 133

Fixed Costs (59850) 133

Net Income 0 0

Explanation:

Part a

Contribution Margin = Contribution/Sales × 100

Therefore contribution margin is ($444-$311)/$444 * 100 = 29.95% (2 d.p)

Part b

Sales - Variable Cost = Contribution

Net Income = Contribution - Total Fixed Costs

Part c

Break Even Point is when Billings neither makers a profit or loss.

Break Even Point ( Units) = Total Fixed Cost/Contribution per unit

Therefore Break Even Point (Units) = $59850/$133 = 450 units

Part d

The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill

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Answer:

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Explanation:

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I hope my answer helps you

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3 years ago

(1.1: Modeling) Before paying employee bonuses and state and federal taxes, a company earns profits of $103,000. The company pay

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Answer:

Amount paid in;

Bonuses to employees = $5,150

State tax = $5,150

Federal tax = $41,200

Explanation:

The bonus paid to employees, federal tax and state tax are all a percentage of the profit made by the company.

The amount of each of these elements may be computed by applying the applicable percentage on the profit made by the company before any of these deductions.

amounts paid in;

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= $5,150

state tax = 5% * $103,000

= $5,150

and

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3 years ago

If the government increases taxes in response to an inflation, the government is engaging in what economists call?

olchik [2.2K]

Answer:

fiscal policy

Explanation:

Fiscal policy is the policy which is used by the government the tax rate and government spending economy to analyse the economy of the nation

It is a technique through which a national bank impacts a country's cash supply.

The instances of fiscal policy are tax reductions and expanded government spending. Both of these strategies are proposed to build total interest while adding to shortages or drawing down of spending plan surpluses.

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3 years ago

Read 2 more answers

What is the income threshold for self-employed workers to file a tax return.

Stolb23 [73]

Answer:

$400 or more

Explanation:

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2 years ago

Echo Sound Company just began business and made the following four inventory purchases in June: June 1 150 units $ 1,040 June 10

postnew [5]

Answer:

FiFo method as prices are continuously increasing

Explanation:

Date Units Cost Per Unit Cost

June 1 150 units $ 1,040 6.93

June 10 200 units 1,560 7.8

June 15 200 units 1,680 8.4

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$5,600

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The average method gives a measure in between FIFO and LIFO.

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3 years ago