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
Answer:
117,000 adjusted COGS
Explanation:
35,000 + 136,000 = 48,000 + COGS
COGS = 123,000 before adjustment
overapplied overhead for 6,000
This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS
123,000 - 6,000 = 117,000 adjusted COGS
Merck provides an example of what can happen if a company deviates from its : Core values
<h3>What are core values?</h3>
The core values of an organization are those values we hold, which form the foundation on which we perform work and conduct ourselves.
The core value of a company are those enduring principles that govern it's fundamental conduct towards attainment of it's goals. It is usually a passionate pledge on the principles that the organization stands for.
Hence, Merck provides an example of what can happen if a company deviates from its core values.
Learn more about core values here : brainly.com/question/14595106
Answer:
- 8,000: $30
- 13,000: $32.50
- 17,000: $42.50
Explanation:
<u>8,000</u>
This amount is below the quantity for which additional charges accrue. The base charge applies: $30.
<u>13,000</u>
This is 1000 gallons more than you get for $30, so costs an additional $2.50. The total water cost is ...
$30 +2.50 = $32.50
<u>17,000</u>
This is 5,000 gallons more than you get for $30, so costs an additional 5×$2.50 = $12.50. The total water cost is ...
$30 +12.50 = $42.50
_____
<em>Comment on the water charges</em>
$30 is the same as the cost of 12,000 gallons at $2.50 per thousand. So, the total bill can be figured at $2.50 per thousand, with a $30 minimum.
8 × $2.50 = $20, so the charge is the minimum, $30
13 × $2.50 = $32.50
17 × $2.50 = $42.50
Answer:
The Multi-step income statement is attached, Please find it
Explanation:
The multi-step income statement is attached with this answer please find it.
Gain On Disposal will appear in the other income section of the multi-step income statement
Cost of goods sold will appear in the cost of goods sold section of the multi-step income statement
Depreciation expense will appear in the operating expense section of the multi-step income statement
Sales returns and allowances will appear in the sales / net sales section of the multi-step income statement
