Alabama Corporation and California Corporation

Offered Price: $ 12.00 Posted on: 09/30/2016 02:13 AM Due on: 09/30/2016
Question # 00397635 Subject Accounting Topic Accounting Tutorials: 1
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Managerial accounting (4 easy questions)



1)Alabama Corporation and California Corporation have the same sales and profits as follows:

Alabama California


Sales $1,000,000 $1,000,000
Variable Costs 600,000 400,000
Contribution Margin 400,000 600,000
Fixed Costs 200,000 400,000
Profit 200,000 200,000

Using an operating leverage analysis, determine how much profits would increase for each company if each experienced a 10% increase in sales.

For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.


2) Virginia, LLC, sells its product for $20 and incurs variable costs in producing that product of $8 per unit and total fixed costs of $10,000. Using the contribution margin ratio approach, calculate the number of units of the product that Virginia, LLC must sell to generate a profit of $14,400.

For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.


3) Arkansas Company provided the following information at the end of 2010:

Beginning balance in Work-In-Progress $ 300,000
Ending balance in Work-In-Progress 350,000
Beginning balance in Finished Goods 400,000
Ending balance in Finished Goods 350,000
Direct materials costs 1,000,000
Direct labor costs 2,000,000
Manufacturing overhead 2,000,000
Selling expenses 300,000
General and administrative expenses 200,000
Sales 8,000,000

Prepare an income statement for fiscal year 2010.

For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.


4)

Mississippi Company produces and sells one product. Its sales and expenses for last month were:

Total Per Unit

Sales $17,600 $16.00
Variable costs 11,000 11.00
Contribution Margin 6,600 6.60
Fixed costs 6,000
Profit 600

Compute Mississippi Company’s margin of safety in dollars and as a percentage of sales.

For problems, be sure to answer all questions and provide all requested information. Your response should be at least 75 words in length.

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