Questions from General Accounting

Q: Bloom Company management predicts that it will incur fixed costs of $

Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%. Use this information...

Q: Cooper Company expects to sell 200,000 units of its product

Cooper Company expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and...

Q: Refer to Simon Company’s balance sheets in Exercise 17-6.

Refer to Simon Company’s balance sheets in Exercise 17-6. Analyze its year-end short-term liquidity position at the end of 2015, 2014, and 2013 by computing (1) the current ratio and...

Q: Refer to the information in Exercise 21-16. Assume the

Refer to the information in Exercise 21-16. Assume the company is considering investing in a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 pe...

Q: Refer to the information in Exercise 21-16. If the

Refer to the information in Exercise 21-16. If the company raises its selling price to $240 per unit, compute its (1) contribution margin per unit, (2) contribution margin ratio, (3) break-even point...

Q: Refer to the information in Exercise 21-16. The marketing

Refer to the information in Exercise 21-16. The marketing manager believes that increasing advertising costs by $81,000 in 2016 will increase the company’s sales volume to 11,000 uni...

Q: Nombre Company management predicts $390,000 of variable costs,

Nombre Company management predicts $390,000 of variable costs, $430,000 of fixed costs, and a pretax income of $155,000 in the next period. Management also predicts that the contribution margin per un...

Q: Handy Home sells windows and doors in the ratio of 8:

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350....

Q: R&R Tax Service offers tax and consulting services to individuals

R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 5:3:...

Q: Company A is a manufacturer with current sales of $6,

Company A is a manufacturer with current sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company B is a consulting firm with current service revenues of $4,500,000...