Questions from General Accounting

Q: Scrushy Company sells a product for $150 per unit. The

Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the break-even point in...

Q: SungSam Enterprises reports the following data: / Determine

SungSam Enterprises reports the following data: Determine SungSam Enterprises’s operating leverage

Q: Westminster Co. reports the following data: / Determine

Westminster Co. reports the following data: Determine Westminster Co.’s operating leverage.

Q: Liu Inc. has sales of $48,500,000

Liu Inc. has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000. Determine the company’s margin of safety as a percent of current sales

Q: During May, Bergan Company incurred factory overhead costs as follows:

During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; utilities cost, $4,800; and factory depreciation, $9,000. Journalize the ent...

Q: Junck Company has sales of $550,000, and the

Junck Company has sales of $550,000, and the break-even point in sales dollars is $385,000. Determine the company’s margin of safety as a percent of current sales.

Q: Melinda Stoffers owns and operates ABC Print Co. During February,

Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the o...

Q: Renaissance Capital Group is considering allocating a limited amount of capital investment

Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash...

Q: The capital investment committee of Ellis Transport and Storage Inc. is

The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows...

Q: Social Circle Publications Inc. is considering two new magazine products.

Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows: Each product requires an investment of $125,000. A rate of 10%...