Waitstaff at restaurants typically do what?

Hudson Co. reports the contribution margin income statement for 2019.

Studentka2010 [4]

Answer:

1. Contribution Margin = $576,000

2. Contribution Margin ratio = 25%

3. Break-even point = 5,400 units

4. Break-even point in sales dollars = $1,296,000

Explanation:

Requirement 1

If Hudson Company raises its selling price to $240 per unit, the contribution margin format income statements will be as follows:

HUDSON CO.

Contribution Margin Income Statement

For Year Ended December 31, 2019

Sales Revenue ($240 × 9,600 units) = $2,304,000

less: variable expense = $(1,728,000)

($180 × 9,600 units)

Contribution Margin = $576,000

It increases due to the rise in sales price.

Requirement 2

We know,

Contribution Margin ratio = (contribution margin ÷ sales revenue) x 100

Given,

From requirement 1, we get, Contribution Margin = $576,000

And total sales revenue = $2,304,000

Putting the value into the above formula, we can get-

Contribution Margin ratio = ($576,000 ÷ $2,304,000) × 100

or, Contribution Margin ratio = 0.25 × 100

Therefore, Contribution Margin ratio = 25%

Requirement 3

We know,

Break-even point (in Units) = Fixed costs ÷ contribution margin per unit.

Given,

Fixed costs = $324,000

contribution margin per unit = sales price per unit - variable cost per unit

contribution margin per unit = $240 - $180

contribution margin per unit = $60

Putting the value into the above formula, we can get-

Break-even point (in Units) = $324,000 ÷ $60

Break-even point (in Units) = 5,400 units

It means, if Hudson company sells 5,400 units, there will be no loss or no profit.

Requirement 4

We know,

Break-even point in sales dollars = Break-even point sales in units × sales price per unit

Given,

From requirement 3, we get the break-even point sales in units = 5,400 units

Sales price per unit = $240

Putting the value into the above formula, we can get-

Break-even point in sales dollars = 5,400 units × $240

Therefore, Break-even point in sales dollars = $1,296,000

It means, if the total sales of Hudson company is $1,296,000, the company will receive no profit. It will not incur any loss too.

8 0

3 years ago

Which of the following is true of variances? a.Unfavorable variances occur whenever actual prices or actual usage of inputs are

Marysya12 [62]

Answer:

B) Favourable Variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.

Explanation:

Variances refer to the difference between actual and standard or budgeted costs. Standard cost is also referred to as budgeted cost. Budgeted costinh can be used by a food nutritionist to determine the food quantity he can cook as well as the ingredient amount which consists of the budgeted costs and the actual cost of preparing the food. Budgeted costchas a major advantage which is its ability to determine the pricing policy even before the product or service is delivered. When favourable or unfavourable variances are mentioned, it refers to the greater of budgeted or actual price or quantity. Favourable goes with a greater actual price or quantity while unfavorable or adverse goes with a greater standard price or quantity.

5 0

3 years ago

Read 2 more answers

Prices enable a market economy to adjust to unexpected events bya.maintaining consumption and production at stable levels.b.gove

baherus [9]

Prices enable a market economy to adjust to unexpected events by adjusting consumption and production.

Option: D

Explanation:

The Government commands significant aspects of economic activity in a centrally planned economy. The government determines the factors of production and owns the enterprises which produce public goods and services. The government is pricing and manufacturing products and services which it believes help individuals. The unexpected events may be like the ongoing corona-virus pandemic, during this phase of economy the states are regulated by adjusting the production and consumption in market, either by decreasing the price of some commodities or by maintaining supply in market.

3 0

3 years ago

The term _____ can be used to refer to the totality of a firm's organization, includingits organizational structure, control sys

melamori03 [73]

Answer:

B. organization architecture

Explanation:

Organization architecture refers to one of the most comprehensive terms in organizational sciences. It includes a thorough organizational structure with defined roles and processes, taking into consideration the human capital. Also, it describes the existing control mechanisms that ensure that processes are well maintained, as well as the incentives that drive motivation and set organizational goals.

8 0

3 years ago

The Director of Information Technology for the city of Tampa, Florida formed a company to sell computer supplies and software. A

yanalaym [24]

Answer:

1. Recording

2. Authorization

Explanation:

Based on the scenario described above, it can be concluded that the control issue, in this case, arose because the Director had both RECORDING and AUTHORIZING duties.

This is because, for the Director of Information Technology for the city of Tampa, Florida not to have been convicted by a jury regardless of what she did, she must have followed the Segregation of Duties accordingly. This is a means of reducing the errors or fraudulent activities of employees.

And given she has a RECORD of transactions to prove her innocence and at the same time, she has AUTHORIZATION or the approval to supply the software, and hence, she is not guilty of the accusation.

3 0

3 years ago