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Lynna [10]
3 years ago
12

Watson Company has monthly fixed costs.. Watson Company has monthly fixed costs of $91,000 and what dollar amount of sales must

be made to produce the target income? a 40% contribution margin ratio. If the company has set a target monthly income of a. $15,800, b. $267000 c. $106,800 d. $227500 e. $39.500
Business
1 answer:
asambeis [7]3 years ago
5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Watson Company has monthly fixed costs of $91,000.

Contribution margin ratio= 0.40

To calculate the dollar amount of sales, we need to use the following formula:

Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio

Break-even point (dollars)= 91,000/0.4= 227,500

A) Desired profit= 15,800

Break-even point (dollars)= (91,000 + 15,800) / 0.40= 267,000

B) Desired profit= 267,000

Break-even point (dollars)= (91,000 + 267,000) / 0.40= 895,000

C) Desired profit= 106,800

Break-even point (dollars)= (91,000 + 106,800) / 0.40= 494,500

D) Desired profit= 227,500

Break-even point (dollars)= (91,000 + 227,500) / 0.40= 796,250

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The amount of depreciation expense for the years ended December 31, 2012, 2013, 2014, and 2015, for Layton Company is determined as follows:

<h3>(a) the straight-line method:</h3>

2012:    $33,600

2013:   $33,600

2014:   $33,600

2015:   $0

<h3>(b) the units-of-output method:</h3>

2012:    $11,340 (1,350 x $8.40)

2013:   $35,280 (4,200 x $8.40)

2014:   $30,660 (3,650 x $8.40)

2015:   $23,520 (2,800 x $8.40)

<h3>(c) the double-declining-balance method:</h3>

2012:    $71,993 ($108,000 x 0.6666)

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2015:   $0

<h3>Data and Calculations:</h3>

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Straight-line depreciation rate = $33,600 per year ($100,800/3)

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Learn more depreciation methods at brainly.com/question/17102168

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