Applying ExcelData Unit sales 10,000 unitsSelling price per unit $70 per unitVariable expenses per unit $42 per unitFixed expenses $140,000Enter a formula into each of the questions below. If your formulas are correct, you should get the correct answers to the following questions. Show your work and formulas.(a) What is the break-even in dollar sales?Break-even in dollar _____(b) What is the margin of safety percentage?Margin of safety percentage _____(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)Degree of operating leverage _____3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%Percentage increase in the operating income _____4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like thisData Unit sales 12,000 unitsSelling price per unit $70 per unitVarable expenses per unit $42 per unitFixed expenses $140,000(a) What is the net operating income? (Negative amount should be indicated by a minus sign.)Net operating income (loss) _____(b) By what percentage did the net operating income increase?Percentage increase in net operating income _____%

Answer:

Please see solution below

Explanation:

a. Break even in dollar sales

= [ Fixed cost / Contribution margin ] × Selling price per unit

Fixed cost = $140,000

Selling price per unit = $70

Variable expenses per unit = $42

BEP in dollars = [$140,000 / $70 - $42] × $70

= $350,000

b. Margin of safety percentage

= [ Current sales level - Break even point / Current sales level ] × 100

Current sales level = 10,000 units

Break even point = Fixed cost / Contribution margin

= $140,000 / $70 - $42

= 5,000 units

Margin of safety = [10,000 - 5,0000/10,000 ] × 100

= 50%

C. Degree of operating leverage.

= Contribution margin / Net operating income

Contribution margin = $70 - $42 = $28

Net operating income

Sales ($70 × 10,000)

$700,000

Less Variable cost ($42 × 10,000)

$420,000

Contribution margin

$280,000

Less Fixed cost

$140,000

Net operating income

$140,000

Degree of operating leverage = $280,000 / $140,000

= 20%

D. Percentage in net income

Sales ($70 × 12,000)

$840,000

Less variable cost

$420,000

Contribution margin

$420,000

Less fixed cost

$140,000

Net operating income

$280,000

Percentage change in net income

= [$140,000 / $280,000] × 100

= 50%

Suppose you invest $1,600 for six years at an annual percentage rate of 9 percent. a. What is the future value if interest is compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value if interest is compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value if interest is compounded monthly? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the future value if interest is compounded continuously? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $23,000 per year to work as a potter for a competitor. He estimates he could use his talents to earn an additional $6,000 per year in consulting fees if he were working full time as a potter. Total annual revenue from pottery sales is $86,000.
Instructions:
A. Calculate the accounting profit for Gomez’s pottery firm.
B. Now calculate Gomez's economic profit.

The wages payable related to the factory workers for Larkin Company during the month of January are $76,000. The employer's payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $6,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor.
Prepare entries for factory labor.
Instructions
a. Prepare the entry to record the factory labor costs for the month of January.
b. Prepare the entry to assign factory labor to production.
(Weygandt, 12/2017, p. 20-31) Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2017). Accounting Principles, 13th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119411017 Always check citation for accuracy before use.

g A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n):

9.
How is nominal GDP converted into real GDP?
O by eliminating the effects of price increases on GDP growth
O by adding all incomes earned to total expenditures by consumers, businesses, and government
O by adding the contributions of American-owned factories in foreign countries
O by adding up all of the real purchases made in the economy

Suppose that you buy a 1-year maturity bond with a coupon of 7.2% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 2%? 4%? 8.30%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

___________________ includes the process, content, and outcome of refreshment or replacement of attributes that have the potential to substantially affect its long-term prospects in a company.a) vertical integrationb) general managementc) strategic renewald) corporate governance

If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability. A. True B. False

Which of the following is not an exemption from minimum essential coverage for health insurance:

a. the taxpayer had coverage for all but 1 month during the year
b. the taxpayer’s income is less than 200% of the federal poverty level
c. the taxpayer was in jail
d. the taxpayer spent 350 days out of the United States during the year

Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The tenant, Barbara Jones, paid one year's rent in advance, which Ivanhoe recorded as a credit to Unearned Rent Revenue. Ivanhoe reports on a calendar-year basis. The adjustment on December 31, 2020 for Ivanhoe should be:________.

If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $50 per share and 200,000 shares of stock F at $25 per share, what is the portfolio turnover rate?The composition of the Fingroup fund portfolio is as follows:Stock shares PriceA 200,000 $35B 300,000 40C 400,000 20D 600,000 25 The fund has not borrowed any funds but its accrued management fee with the portfolio manager currently totals 30,000. there are 4 million funds outstanding ? What is the net asset value of the fund?

Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 9,000 units per year for $8.00 each. Mohave has the following information about the cost of producing tote bags:

Direct materials $5.00
Direct labor 1.00
Variable manufacturing overhead 1.00
Fixed manufacturing overhead 2.00
Total cost per unit $9.00

Mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 70 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags.

Required:
a. Compute the difference in cost between making and buying the umbrella tote bag.
b. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them?

Selling and administrative expenses include all of the following except:____________. a. shipping document preparation. b. post-sale technical support. c. factory overhead. d. customer return processing.

theory of production​

The most recent price activity in this chart is a quadruple top breakout. The box size is $0.50 and the reversal size is three boxes. What is the price objective for the breakout using the horizontal count method?a. $19.00b. $21.50c. $12.50d. $22.00

Crawford Corporation incurred the following transactions.

1. Purchased raw materials on account $46,300.
2. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials.
3. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable.
4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor.
5. Manufacturing overhead costs incurred on account were $80,500.
6. Depreciation on the company's office building was $8,100.
7. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
8. Goods costing $88,000 were completed and transferred to finished goods.
9. Finished goods costing $75,000 to manufacture were sold on account for $103,000.

Requried:
a. Journalize the transactions.
b. Prepare entries for manufacturing and nonmanufacturing costs.

The Fremont Company uses the weighted-average method in its process costing system. The company recorded 43,500 equivalent units for conversion costs for November in a particular department. There were 7,400 units in the ending work-in-process inventory on November 30, 80% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 9,400 units, 50% complete with respect to conversion costs. A total of 39,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:________

Determine whether the following bonds payable will be issued at par​ value, at a​ premium, or at a discount. a. Evergreen Company issued bonds payable that pay stated interest of 6 1/4%. On the date of issuance, the market interest rate was 6 3/4%.b. Seven Hills, Inc., issued 3% bonds payable when the market rate was 3 3/4%. c. Flagstaff Corporation issued 5% bonds when the market interest rate was 5%. d. The market interest rate is 4%. Rainforest Corp. issues bonds payable with a stated rate of 5 1/2%.

In the country of Marzipana, total consumption in Year 1 was $56,000 million and in Year 2 was $60,000 million. It has been observed that each time disposable income changes in this country by $100, consumption changes by $70. Using this information compute the change in disposable income from Year 1 to Year 2.
A. Disposable income increased by $2,800 million in Year 2.
B. Disposable income decreased by $2,000 million in Year 2.
C. Disposable income increased by $2,000 million in Year 2.
D. Disposable income increased by $4,500 million in Year 2.
E. Disposable income decreased by $2,600 million in Year 2.

Larkspur, Inc. reports net income of $91,800 in 2022. However, ending inventory was understated $7,800. What is the correct net income for 2022?

Entity A supplies planed timber, paint, varnish, springs, upholstery, and cushioning to EntityB, which produces a ready to use furniture. Entity C is the marketing department of Entity B. In this context, ______.a. A is an upstream supply chain member, while C is the downstream chain memberb. C is an upstream supply chain member, while A is the downstream chain memberc. B is an upstream supply chain member, while A is the downstream chain memberd. C is an upstream supply chain member, while B is the downstream chain member

John wants to purchase a new motorcycle that costs $10,000 in five years. If John wants to have $10,000 in five years, how much would he have to deposit at the end of each of the next five years?

The Economy Tomorrow Suppose a person who is developing an app crowdfunds $20,000 and holds this as cash for future expenses. If this $20,000 comes from donors' checking accounts, by how much will the money supply fall of the reserve ratio is 10 percent? Instructions: Enter your response as a whole number The money supply will decrease by $___________.

Selected transactions for Windsor, Inc., an interior decorating firm, in its first month of business, are as follows.

Jan. 2

3

9

11

Invested $18,481 cash in the business in exchange for common stock.

Purchased used car for $10,103 cash for use in the business.

Purchased supplies on account for $616.

Billed customers $2,218 for services performed.

Paid $246 cash for advertising.

Received $961 cash from customers billed on January 11.

Paid creditor $370 cash on balance owed.

Declared and paid a $616 cash dividend.

16

20

23

28

Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent

manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the

account titles and enter o for the amounts.)

On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.

You decide to invest $20,500 in Bank of America and $14,500 in Twitter. What is the portfolioâs beta? Bank of America beta: 1.27 Twitter beta: 1.96

The debt-to-equity ratios for Firm 1, Firm 2, Firm 3, and Firm 4 are 0.2, 0.3, 0.35, and 0.4, respectively. The earnings per share for Firm 1, Firm 2, Firm 3, and Firm 4 are $4, $3, $2.5, and $2, respectively. Everything else equal, which firm is placing more burdens on its borrowing?A. Firm 1.B. Firm 2.C. Firm 3.D. Firm 4.

Leach Inc. experienced the following events for the first two years of its operations:

Year 1: Issued $10,000 of common stock for cash.
Provided $100,000 of services on account.
Provided $35,000 of services and received cash.
Collected $65,000 cash from accounts receivable.
Paid $14,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible.

Year 2: Wrote off an uncollectible account for $680.
Provided $120,000 of services on account.
Provided $25,000 of services and collected cash.
Collected $102,000 cash from accounts receivable.
Paid $30,000 of salaries expense for the year.
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible.

Required

a. Record the 2016 and 2017 events in general journal form and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2016 and 2017. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
c. What is the net realizable value of the accounts receivable at December 31, 2016 and Dec. 31. 2017?

At which stage of the business cycle would the economy be at when GDP begins to rise and the unemployment rate begins to fall?
A)
Peak
B)
Contraction
Trough
D)
Expansion

Which of the following are frequently mentioned goals of the Federal Reserve? Check all that apply.