Questions from Managerial Accounting


Q: Jagswear Inc. earned operating income of $100,000 during

Jagswear Inc. earned operating income of $100,000 during 2020. The company wants to earn operating income of $140,000 during 2020. Its fixed costs are expected to be $56,000, and variable costs are ex...

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Q: Trail King manufactures mountain bikes. Its sales mix and contribution margin

Trail King manufactures mountain bikes. Its sales mix and contribution margin information per unit are as follows: Calculate the break-even point in units for a company with more than one product. I...

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Q: The Richibouctou Inn is trying to determine its breakeven point. The

The Richibouctou Inn is trying to determine its breakeven point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows: Calculate the break-even point and margi...

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Q: In 2019, Demuth Company had a break-even point of

In 2019, Demuth Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2020, the selling price and the variable cost per unit did not change...

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Q: Lisah Inc. manufactures golf clubs in three models. For the

Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fixed costs $30,000. If the Big Bart lin...

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Q: In the month of June, New Day Spa served 560 clients

In the month of June, New Day Spa served 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Calculate the contribution margin and...

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Q: Johansen Company had $210,000 of operating income in 2020

Johansen Company had $210,000 of operating income in 2020, when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per-uni...

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Q: Moran Company reports the following operating results for the month of August

Moran Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following i...

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Q: Friendly Airways Inc., a small two-plane passenger airline,

Friendly Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Frie...

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Q: Current Designs manufactures two different types of kayaks: rotomoulded kayaks

Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $820,...

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