Questions from General Accounting

Q: Isaac Corporation has collected the following information after its first year of

Isaac Corporation has collected the following information after its first year of sales. Sales were $1,800,000 on 100,000 units; selling expenses $400,000 (30% variable and 70% fixed); direct material...

Q: Mega Electronix carries no inventories. Its product is manufactured only when

Mega Electronix carries no inventories. Its product is manufactured only when a customer’s order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 201...

Q: McCure Corporation had a bad year in 2013, operating at a

McCure Corporation had a bad year in 2013, operating at a loss for the first time in its history. The company’s income statement showed the following results from selling 200,000 uni...

Q: Huber Corporation has collected the following information after its first year of

Huber Corporation has collected the following information after its first year of sales. Sales were $1,000,000 on 40,000 units; selling expenses $200,000 (30% variable and 70% fixed); direct materials...

Q: Keppel Corporation manufactures and sells three different models of exterior doors.

Keppel Corporation manufactures and sells three different models of exterior doors. Although the doors vary in terms of quality and features, all are good sellers. Keppel is currently operating at ful...

Q: The Eatery is a restaurant in DeKalb, Illinois. It specializes

The Eatery is a restaurant in DeKalb, Illinois. It specializes in deluxe sandwiches in a moderate price range. Michael Raye, the manager of The Eatery, has determined that during the last 2 years the...

Q: The following variable costing income statements are available for Lyte Company and

The following variable costing income statements are available for Lyte Company and Darke Company. Instructions: (a) Compute the break-even point in dollars and the margin of safety ratio for each c...

Q: Peaches and Cream Corporation manufactures cosmetic products that are sold through a

Peaches and Cream Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 16.25% of sales. The income statement for the year end...

Q: FAB produces fabrics that are used for clothing and other applications.

FAB produces fabrics that are used for clothing and other applications. In 2013, the first year of operations, FAB produced 500,000 yards of fabric and sold 400,000 yards. In 2014, the production and...

Q: Electricoil is a division of Meier Products Corporation. The division manufactures

Electricoil is a division of Meier Products Corporation. The division manufactures and sells an electric coil used in a wide variety of applications. During the coming year, it expects to sell 200,000...