Gross Margin

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A company's sales in Year 1 were $250,000 and in Year 2 were $287,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is: a. 115% b. 100% c. 15% d. 13%...
Firm W is a monopolist that faces market demand with elasticity equal to -3, and Firm W's profit maximizing price is $36/unit. Use the mark-up formula to infer Firm W's marginal cost per unit at it...
Given below are account balances for Charlie's Company. How much is the gross profit margin? (Enter the percentage as a decimal rounded to two decimal places.)
A store marks up a picture frame 70% from its wholesale price. In a clearance sale, the price is discounted by 40%. The sale price is $26.52. What was the wholesale price of the picture frame?
Given below are account balances for Charlie Company: How much is the gross profit margin? Write the percentage as a decimal rounded to two decimal places.
Nissan appliances bought two dozen camcorders at a cost of $4,788. The markup on the camcorders is 25% of the selling price. What was the original selling price of each camcorder?
- According to the information below, what is the company's total gross margin under absorption costing? Diego Company manufactures one product that is sold for $79 per unit in two geographic regio...
A reduction in the markup will cause a. a reduction in the natural level of employment. b. a reduction in the natural level of output. c. no change in the natural level of output. d. an increase in...
Sales revenue on the books was $175000. Unearned revenue at the end of the year was $12000 and unearned revenue at the beginning of the year was $4500. How much cash was received from revenue?
State true or false and justify your answer: Sales minus cost of goods sold is equal to earnings before taxes.
Winston & Company buys skateboards from the distributor for $49.60 each. If the skateboards are sold for $89.99, what is the percent markup based on selling price? (Round to the nearest tenth of a...
A company just published its 2014 income statement, which shows net income equal to $240,000. The statement also shows that operating expenses were 500,000, before including depreciation which was...
Solve the problem involving markdown or markup. A sport jacket that sells for $159 has a markup $83. Find the wholesale price.
Suppose that the manager of a small company that produces roof tile has determined that the overhead is $1000 and the variable cost for each unit of tile produced is $200. Each unit of tile sells f...
Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a) If the elasticity of demand for the product is -2, find the marginal cost of th...
A company has $7.20 per unit in variable costs and $3.10 per unit in fixed costs at a volume of 50,000 units. If the company mark up totals 0.41, what price should be charged if 55,000 units are ex...
Sosa Company has $39 per unit in variable costs and $1,900.00 per year in fixed costs. Demand is estimated to be 138,000 units annually. What is the price if a markup of 35% on total cost is used t...
Explain the difference between margin and markup.
If a monopolist claims her profit-maximizing markup factor is 6, what is the corresponding price elasticity of demand? a. -1.5. b. -1.2. c. -0.85. d. -0.2.
Planet View is considering production of a lighted world globe that the company would price at a markup of 20 percent above full cost. Management estimates that the variable cost of the globe will...
You are a price marker and you set your own price for your product. You believe that the elasticity of demand for your product is -4. By how much should you mark up your product price over your mar...
Markup would generally be highest under: a. monopoly. b. a cartel. c. an oligopoly. d. monopolistic competition. e. a competitive market
Sweetums Candy Co is a monopolist in suburban Pawnee. Given that the price elasticity of demand is currently -1.25 and the markup for Sweetums is 0.5 (or fifty percent) is the markup too high or to...
Fragment Company, Inc. is a wholesaler that sells merchandise in large quantities. Its catalog indicates a list price of $300 on a particular product and a 40% trade discount is offered for quantit...
A company purchased 10,000 pairs of men's slacks for $19.76 per pair and marked them up $22.43. What was the selling price of each pair of slacks?
A job has 10 cost code categories, half of which have a markup listed of 5%, three have a markup of 15%, and the remainder has no markup. If each category has $15,000 in cost, what is the price quo...
Morales Corporation produces microwave units. The following per unit cost information is available: Direct materials $33 Direct labor $21 Variable manufacturing overhead $19 Fixed manufacturing ove...
The following information has been provided by Evans Retail Stores Inc. for the first quarter of the year. | Sales | $350,000 | Variable selling expenses | 35,000 | Fixed selling expenses | 25,000...
If price (P), unit costs (C), and quantity (Q) are known, what is the markup of markup-cost pricing? a. (PQ - CQ)/Q b. P - C/Q c. (P - C)/Q d. (P - C)/C e. 1 - (P - C)/Q
In the absorption cost approach, the mark-up percentage covers the: a. Desired ROI only, b. Desired ROI and selling and administrative expenses, c. Desired ROI and fixed costs, d. Selling and admin...
Ashley Corporation provided the following list of cost data related to its manufacturing operations for the month of September 20X4. Beginning raw materials inventory $ 966,400 Raw materials purch...
On 2014 December 31, Lidowski Company, the accounting records showed: Net sales $105,000 Gross profit $57,000 Net income $21,000 Income tax expense $9,000 Selling, general, and administrative expe...
Financial information is presented below: Operating expenses $31,000 Sales returns and allowances 9,000 Sales discounts 5,000 Sales revenue 162,000 Cost of goods sold 108,000. What is the gross pro...
Rome Inc. owns 30% of Amber Co. and applies the equity method. During the current year, Rome bought inventory costing $66,000 and then sold it to Amber for $120,000. At year-end, only $24,000 of me...
Using the projected data based on the firm's current costing system, calculate gross profit per unit and gross profit percentage (with respect to selling price) for each product.
A company had sales of $695,000 and the cost of goods sold of $278,000. Its gross margin equals: a. $(417,000). b. $417,000 c. $695,000 d. $278,000 e. $973,000
Suppose that Danforth's marginal cost of a leather belt is $200, and at one of the firm's shops, the total fixed cost is $500 a day. The profit-maximizing number of leather belts sold in this shop...
Jake Green estimates the cost of future projects for a large contracting firm. Jake uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a s...
Large retailers like The Home Depot and Wal-Mart typically use gross margin ratio (gross margin/sales), inventory turnover (sometimes referred to as inventory turns), and gross margin return on inv...
You manage two locations for your firm selling products to consumers. In city A, you have lots of competition, therefore the consumer's price elasticity is -7.0. In city B, you face much less compe...
The consumer price elasticity of city 1 is -5, and the consumer price elasticity of city 2 is -2. The total cost of your location is the same: 60Q + 30. What is the mark up in city 2?
The Zel Company, a wholesaler, budgeted $150,000 of credit sales and $20,000 of cash sales for November 2019. All merchandise is marked up to sell at 125% of its invoice cost. The budgeted gross ma...
Microscape and Netsoft are the only two firms in the market for personal computers, which is a homogeneous product. The two firms choose their respective quantity, qi , simultaneously. The inverse...
Provide a numerical example showing how managers could use the contribution margin ratio to determine the total sales revenue needed to earn a target profit.
EagleEagle Company had a $28,000 beginning inventory and a $32,000 ending inventory. Net sales were $184,000; purchases, $76,000; purchase returns and allowances $4,000; and freight in, $3,000. Cos...
Sheridan Service sells oil at a markup of 37% of the selling price. Sheridan paid $0.82 per liter of oil. a) What is the selling price per liter? b) What is the rate of markup based on cost?
Stevie bought a stereo for $210 and put it on sale at his store at a 70% markup rate. What was the retail price of the stereo?
How does the method of COGS validation used affect the profit or loss that company will show on their income statement?
How does the sales returns and allowances accounting provide management with a measure of operating efficiency?
What account is when a company pays half and put half on an account?
If a product is purchased by a distributor for $100 and the distributor wants to earn 25% gross margin, what would be the selling price?
A company sells inventory and earns profit cash, what impact on flow?
How to compute cost per unit given gross margin and sales price?
If the store purchases a product at a wholesale cost of $1.65 and it is sold at $2.20. What is the gross profit percentage?
The seller of a watch marked up the price by 30%, and the new price is $338.00. What was the watch s original price before the markup?
A company's net sales were $683,900, its cost of goods sold was $238,000 and its net income was $37,850. What is its gross margin ratio?
A company had net sales of $809,400, its cost of goods sold was $573,110 and its net income was $30,200. The company's gross margin ratio equals?
A company's gross profit was $132,640 and its net sales were $512,500. Its gross margin ratio equals:?
A company had net sales of $784,800 and the cost of goods sold of $560,400. Its net income was $24,770. The company's gross margin ratio equals:?
A company's gross profit was $121,260 and its net sales were $475,900. Its gross margin ratio equals:?
A store manager paid $172 for an item and set the selling price at $258. What was the percent of the markup?
A car dealer sells an SUV for $39,000, which represents a 25% markup over the dealer's cost. What was the cost of the SUV to the dealer?
A pair of earrings has a 130% markup rate based on cost. the selling price is $77.77. What is the markup to the nearest cent?
The Berry's sold their house after paying the real estate agent a commission of 6% of the selling price, $1,486 in other costs, and $90,000 on the mortgage. If they received $49,514, what was the s...
Compute the Company's gross profit percentage using the following accounts: Inventory-December 31, 2013 $ 195,000 Sales-Gross 550,000 Cost of sales 200,000 Sales returns 15,000 Sales allowances 10...
Wedge Company had a $32,000 beginning inventory and a $35,000 ending inventory. Net sales were $149,000; purchases, $93,000; purchase returns and allowances, $5,000; and freight in, $7,000. Cost of...
What is the formula for cost of goods sold for a merchandising or manufacturing company?
Express the markup on cost formula in terms of the markup on price and use this relation to explain why a 100% markup on cost implies a 50% markup on price. The company has the following products a...
Use the given information to find the original price. Retail Price: $99 Markup percent: 80%
A retailer purchases 100 packets of melon seeds for $30. 25 packets are spoiled and discarded. If this retailer wants a 40% markup based on his overall cost, how much must he price each packet?
At the profit-maximizing quantity, the price elasticity of demand is 2.5. What is the markup? A. 1.67 B. 2.57 C. 0.71 D. 1.32
Mega skateboard supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 million. Its gross margin ratio equals: (blank).
Financial information is presented below: Operating expenses $30,000 Sales returns and allowances 6,000 Sales discounts 5,000 Sales revenue 168,000 Cost of goods sold 97,000 The gross profit rate...
If you are working (or worked in the past), has your company found ways to increase profits, other than by controlling costs?
Financial information is presented below: Operating expenses $23,000 Sales returns and allowances 5,000 Sales discounts 3,000 Sales revenue 148,000 Cost of goods sold 102,000 The gross profit...
Each month, Haddon Company has $300,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (75% fixed). Haddon's monthly sales are $500,000. The markup percentage o...
Dexter Inc. recorded net sales of $97,000 during the period, and its cost of goods sold amounted to $67,900. Compute the company's gross profit ratio.
Martin Corp. began the year with 2,000 units of inventory that had been purchased for $6 per unit. During the year, 5,000 units were purchased for $8 each and 8,000 units for $10 each. Martin sold...
Gross profit analysis could be of value for all but which of the following? 1. Projections of profitability. 2. Estimating administrative expenses. 3. Inventory for interim statements. 4. Estim...
UR Safe Systems Installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics: Design Specifications ICU 100 ICU 900 Cost Data Video cameras 1 3 $ 107...
S.M. Ltd. had sales of $400,000 in 2011 (70% of its sales are credit). The company's gross profit margin is 10%, its ending inventory is $80,000, and its accounts receivable is $25,000. What amount...
The Falling Snow Company is considering the production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the...
A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to...
The following information is available for Aikman Company. January 1, 2017 2017 December 31, 2017 Raw materials inventory $23,680 $31,650 Work in process inventory 16,120 18,470 Finished goods i...
If sales are $300,000 and cost of goods sold is $180,000, what is the gross profit and gross margin percentage?
A product with a high gross profit could be an unprofitable product. True False
Explain how to calculate gross profit ratio.
At the beginning of the year, Wildcat Athletic had an inventory of $300000. During the year, the company purchased goods costing $1200000. If Wildcat Athletic reported ending inventory of $450000 a...
Financial information is presented below: Operating expenses $21000 Sales returns and allowances 7000 Sales discounts 3000 Sales revenue 168000 Cost of goods sold 99000 The gross profit rate would...
What is Reed's Company's gross profit percentage (rounded) for the year, assuming the ending inventory totaled $685?
Beginning finished goods, 1/1/2015 $92,000, Ending finished goods, 12/31/2015 75,000, Cost of goods sold 300,000, Sales revenue 450,000, Operating expenses 95,000. What is the gross margin for 2015...
The following is Talley Company's income statement for the past year. Sales revenue $540,000 Cost of goods sold 324,000 Gross margin 216,000 Operating expenses 126,000 Operating income $90,000 1)...
The selling price of a refrigerator, is $644.40. If the markup is 20% of the dealer's cost, what is the dealer's cost of the refrigerator?
Calculate cost of merchandise inventories, Gross profit and operating income. Both in dollar terms and percentage. 2016 2015 Cost of goods sold $8,511,100 $7,787,500 Inventories $1,378,500 $1,306,...
What is the purpose of a sales order form and a sales journal?
Dell can be considered a good example of a 'Chinese restaurant' in the sense that it makes its money by having a high asset turnover with a relatively low net profit margin. If Dell were to increas...
For the year ended December 31, 2020, the job cost sheets of Cinta Company contained the following data. Other data: 1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,0...
1. What is gross profit margin and what is net profit margin? 2. What are in the between the two? 3. Give a few examples to explain the items between these margins, and show how to analyze these...
The markup over dealer's cost of a new car ranges from 13% to 24%. If the sticker price is $26,000, over what range will the dealer's cost vary?
Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition,...
Product T is produced for $5.90 per pound. Product T can be sold without additional processing for $7.10 per pound, or processed further into Product U at an additional cost of $0.74 per pound. Pro...
Company had the following account balances at the end of the current accounting period: Beginning inventory $73,000 Net purchases 58,250 Net sales revenue 87,500 The normal gross profit for the co...
The Baldwin Wholesale Company has begun 2013 with an inventory of $400,000 and ended the year with an inventory of $500,000. The company's gross profit ratio is 25%, the inventory turnover ratio is...
Shakespear's Pizza sells 1200 large veg Pizzas per week for $16 a pizza. When the owner offers a $5 discount, the weekly sales increases to 1,700. a) Assume a linear relation between the weekly sa...
The gross profit percentage decreased from 36.5% in 2014 to 24.8% in 2015. What is the trend in this change? a. This change represents a downward, or negative, trend. b. The trend cannot be deter...
Family Home and Security, Inc. sells super padlocks. It reported an increase in net sales from 5.0 billion in 2014 to 5.3 billion in 2015, and an increase in gross profit from 1.5 billion in 2014 t...
The following data was extracted from the records of Winsam Company: Sales Revenue 450 units at $35 per unit Beginning Inventory 100 units at $16 per unit Purchases 400 units at $20 per unit Wh...
A company had net sales of $788,500 and cost of goods sold of $562,260. Its net income was $25,640. The company gross margin ratio equals what?
Given below are account balances for Charlie Company: Gross sales $92,000 Sales returns and allowances $6,000 Selling expenses $12,000 Cost of goods sold $44,000 Interest expense $3,000 How much i...
Assume an item costs $2.00. If the firm wants a markup of 40% based on the selling price, what would be the final price?
Assume an item has an invoice cost of $15 and a selling price of $20. Compute the markup both as a percentage on selling price and percentage on cost.
Retailer selling price of a printer is $600 Retailer markup on selling price = 25% Wholesaler markup on selling price = 20% Manufacturer's cost is $200 What was the cost to the wholesaler?
On January 1, 2020, Jim Beam Company sold goods to a customer and received an installment note requiring payments of $15,000 annually for six years. The first payment was received by Jim Beam Compa...
Hat's accounting records showed the following: Inventory, January 1 $35,000 Purchases, January 1 through May 1 200,000 Sales, January 1 through May 1 250,000 Inventory not damaged by flood 30,000...
On March 31, a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,000 Net...
A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same period. Calculate its profit margin.
On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported a beginning inventory...
Swifty Corporation produces microwave ovens. The following per unit cost information is available: direct materials $28, direct labor $25, variable manufacturing overhead $12, fixed manufacturing o...
Your company provides a good to a customer and the customer pays you $150 in cash. To record this transaction you would Debit how much and credit how much?
Olly Company is a merchandising business that sells dog food. Based on the following information, what is the gross margin for Olly Company? Sales Revenue: $581,300 Cash: 119,700 Accounts Receivabl...
Based on this, what is per unit margin cost and Gross margin? MSRP: $5.29 Volume Discount: 30% Promotion Allowance: 15% Unit Cost: $1.18 MSP: 3.70
The adjusted trial balance of Carla Vista Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2020: Sales Revenue: $841,900 Freight-Out: $16,400 Sales Ret...
In accounting, do tax payments and withholding get included when finding gross income?
Calip Corporation, a merchandising company, reported the following results for October: Sales $410,800, Cost of goods sold (all variable) $173,100, Total variable selling expense $17,500, Total fix...
The rate of markup on the cost of a badminton racquet selling at $57.64 is 31%. a) What was the cost of the racquet to the retailer? b) What is the rate of markup on selling price?
A company shows the following balances: Cost of goods sold $900,000 Sales 2,000,000 Sales discounts 25,000 Sales returns and allowances 225,000 What is the gross profit margin? a. 49.3% b. 48.6% c....
The sales discount account is a contra-account to Sales. True False
A company reports the following amounts at the end of the year: Compute the company's gross profit ratio.
The selling price of a refrigerator is $838.75. If the markup is 25% of the dealer's cost, what is the dealer's cost of the refrigerator?
The G. Hobbs Company has determined that its return on equity is 15%. Management is interested in the various components that went into this calculation. However, one of the accountants has misplac...
A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used...
A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to...
Aster Computers received from Ring Manufacturers an invoice dated August 28 with terms 2/10 EOM. The list price of the invoice is 3,000 (freight not included). Ring offers Aster a 9/8/2 trade chain...
Bonnie's Bakery bakes 60 loaves of bread for 1.10 each. Bonnie estimates that 10% of the bread will spoil. Assume a 60% markup on cost. What is the selling price of each loaf? If Bonnie can sell th...
Bill's Furrier marks up mink coats $3,000. This represents a 50% markup on cost. What is the cost of the coats?
Assume that markup is based on selling price. Calculate the dollar markup and cost. Item = IBM scanner Selling price = $80 Markup percent = 30% Dollar markup = ? Cost = ?
Nikkel Corporation, a merchandising company, reported the following results for July: Sales $444,000 Cost of goods sold (all variable) $177,500 Total variable selling expense $22,400 Total fixed s...
Refer to the following mentioned data. in millions 2014 2013 2012 Net revenues $8,268 $8,052 $7,175 Cost of products sold 5,370 5,140 4,356 Gross margin $2,898 $2,912 $2,810 Required: a. Calcul...
A consumer products company reported a 5.4 percent increase in sales from 2011 to 2012. Sales in 2011 were $29,600. In 2012, the company reported cost of goods sold in the amount of $9,107. What wa...
A company earns a gross profit of 20% on cost. Its credit sales are thrice its cash sales. Its credit sales are Rs 400,000. Calculate the Gross Profit Ratio of the company.
Profit margin and turnover ratio vary from industry to industry, what differences would you expect to find between a grocery chain and steel company?
Your construction company recently bid against ABC Construction Company. Your construction costs were $1,125,572 and you added a 6% profit and overhead markup for a total bid of $1,193,106. ABC's b...
The percent-of-sales forecast is likely to be most accurate when used with cyclical companies. True or false.
If one unit of Product Z2 used $1.70 of direct materials and $3.70 of direct labor, sold for $10.00, and was assigned overhead at the rate of 22% of direct labor costs, how much gross profit was re...
Assume a company has fixed costs of 240,000, and the variable cost ratio is 20%. Compute the sales dollars, which give a profit of 50,000.
Sarker manufacturing company produces and sells 40,000 units of a single product. Variable costs total $80,000 and fixed costs total $120,000. If each unit is sold for $8, what markup percentage is...
Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax The entry in the general journal will include a credit to Sales for a) $2,250.00 b) $2,092.50 c) $2,452.50 d)...
A business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year. Calcu...
SportSupplies Corporation has budgeted purchases of inventory, for December, of $140,000. Expected beginning inventory on December 1, and ending inventory on December 31, are $90,000 and $120,000,...
Isaac Company has estimated the following costs for this year for 240,000 units: Manufacturing Selling and Administrative Variable $150,000 $65,000 Fixed 350,000 135,000 Total $500,000 $200,000 Cal...
Crespi Holdings has the following budgeted costs for 20,000 units: Variable Costs Fixed Costs Manufacturing $200,000 $150,000 Selling & Administrative 100,000 50,000 Total $300,000 $200,000 What i...
Ski Market sells snowboards. Ski Market knows that the maximum people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. What is the maximum t...
Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit to sales)?
A new software company wants to start selling DVDs with their product. The manager notices that when the price for a DVD is 15 dollars, the company sells 132 units per week. When the price is 27 do...
The wholesale cost of a hair dryer is $20. The original markup was 46% based on selling price. Find the final sale price after the following series of price changes: A. a markup of 32% B. a markup...
The Bubba Corp. had earnings before taxes of $202,000 and sales of $2,020,000. If it is in the 51% tax bracket, its after-tax profit margin is: a. 6.90% b. 7.40% c. 7.90% d. 4.90%
Perwin Corporation estimates that an investment of $700,000 would be needed to produce and sell 48,000 units of Product B each year. At this level of activity, the unit product cost would be $30. S...
Local Co. has sales of $10.4 million and cost of sales of $6.3 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.4 million. It has annual...
AutoPartsWarehouse.com purchases chrome rims for $710 (for a set of 4) and uses a markup of 55% on selling price. What will be the percent markup on cost? Give your answer as a percentage and round...
A company has $6.10 per unit in variable costs and $4.90 per unit in fixed cost at a volume of 50,000 units. if the company marks up the total cost by 0.52, what price should be charged if 57,000 u...
A company has $7.70 per unit in variable cost and $4.90 per unit in fixed costs at a volume of $50,000 units. If the company marks up total cost by 0.59, what price should be charged if 62,000 unit...
The management team at PSSS is looking toward the future. They want to maintain a gross profit margin of 50%. If the estimate for net sales in 2016 is $5 million, how much gross profit will be nece...
What is the gross development profit margin (rounded to the nearest percent) for a going in cap rate of 10 and a selling cap rate of 7 (round to the nearest whole percent; e.g.,18.18% is rounded to...
Tony works full time as a computer repair technician who makes onsite repairs for individuals and small businesses. He says his gross profit margin is 94% because last year his total revenues were...
If the price from the sale of x-units is given by p = 100 x - x^2, find the revenue function.
In the equation below: 46,000 = total revenue + 10,000 - 360,000 - 12,000 What is the total revenue? Show calculation.
The markup over dealer's cost of a new car ranges from 18\% to 24\%. If the sticker price is $14000 over.What range will the dealer's cost vary?
Net income is $44,400, administrative expenses are $5,500, and selling expenses are $3,700. Cost of merchandise sold is $27,800. How much is sales, assuming no returns or discounts?
Total vending machine sales were $2,300 for the month of May. What accounts are affected?
Lisa buys a cell phone that is on sale for 15 percentage off the original price.The original price is $180 more than the sale price. What is the original price of the cell phone?
Suppose the annual revenue for a company between 2000 and 2005 is approximated by R(t) = 18t^2 + 4t + 3, where t = 0 represents the year 2000. (a) Find the Average Value of R(t) between t = 1and t...
The unit selling price p (in dollars) and the quantity demanded x (in pairs) of a certain brand of women's shoes are given by the demand equation P (x) = 100 e^{-0.001 x} f or 0 less than or equal...
Answer the following questions: 1. The cost of a product is $150, markup is 50%, and markdown is 30%. What s the final selling price? 2. Men's Warehouse purchased black leather belts for $15.99 eac...
Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes gross profit percentage for this period? Round your answer to th...
Computing the gross profit percentage Edible Art earned net sales revenue of $63,000,000 in 2016. The cost of goods sold was $40,950,000, and net income reached $8,000,000, the company s highest ev...
A firm has a retention ratio of 33 percent and a sustainable growth rate of 8.80 percent. The capital intensity ratio is 1.25 and the debt-equity ratio is .68. What is the profit margin?
What is the formula for gross profit margin?
Is gross profit the same as revenue?
How can the gross profit margin be improved?
What are the benefits of strategically operating a company on negative gross margins? Is the risk ever worth it?
Can you become a trillionaire by selling a million-dollar product or service, millions of times?
Bob Nelson recently took over as the controller of Holder brothers Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray...
How are TAM and revenue calculated for a service company?
How do I calculate a markup with a cost price of $7 with a 30% margin?
A product is currently priced at $10. If it is discounted by 10%, the profit margin will be 10%. What is the cost of the product?
Why does Walmart have such a low-profit margin?
What companies have the smallest gap between revenue and profit (except for tech companies and companies that are online or similar like Google)?
What is the formula to generate an ascending list of margins and markups?
What are the main reasons that civilian aviation is still such a low profit margin industry?
Do profit margins always run parallel with demand vs supply?
What are some common products, sold at outrageously high prices, compared to their production costs?
What is the budgeted total direct cost for January 20X4? Use the following data to answer this equation Projected Sales first Quarter. January 4%, February 5%, March 6% a. $65,500 b. $40,000 c....
Rockland Shoe Company records Sales Returns and Allowances and Sales Discounts as contra revenues. Determining the Effects of Credit Sales, Sales Discounts, and Sales Returns and Statement Categor...
Key comparative figures for both Apples and Google follow. Required: 1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2....
Assume the perpetual inventory method is used. 1) The company purchased $13,000 of merchandise on account under terms of 2/10, n/30. 2) The company returned $2,500 of merchandise to the supplier...
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales 1. Crane Company enters sales and sales taxes separately on its cash registe...
The financial information for the two companies is presented below. Fill in the missing amounts. Sandhill Company Carla Vista Company Sales revenue $90,200 Sales returns and allowances $3,000 Net...
A company's marketing department has determined that if their product is sold at the price of P dollars per unit, they can sell q = 1800 - 100 p units. Each unit costs 5 dollars to make. What price...
The graph shows the annual demand for Sport Utility Vehicles SUVs in Poughkeepsie, New York. The current price of SUVs is $21, 100 vehicle. Choose the option that makes the statement below true:
1. The wholesale cost of a desk is $490. The original markup was 69% based on selling price. Find the final sale price after the following series of price changes: a markup of 30%, a markdown of 13...
Calculate the gross and operating margins for Kiwi Fruit. (Do not round intermediate calculations. Enter your answers rounded to 2 decimal places.)
Worldwide annual sales of cellphones were approximately -10p + 1,600 million phones when the wholesale price was 5p dollars. At what wholesale price should cellphones have been sold to maximize ann...
A Company had the following results last period. Units sold 150,000 Unit cost $40.00 Price $90.00 Advertising $1,200,000 Consumer promotion $1,600,000 Personal selling 5 salespeople @ $80,000 each...
During the months of January and February, Solitaire Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $220 to Wizard Inc. with terms 2/30, n/...
An electronics company produces a car stereo for which the variable cost is $5.60 and the fixed costs are $24,000. The product sells for $99.50. Write the total cost C as a function of the number o...
Monarch Company uses a weighted-average perpetual inventory system and has the following purchases and sales: January 1, 20 units were purchased at $10 per unit On January 12, 12 units were sold...
Use the following information to calculate the sales price of a boat under both GAAP and for internal decision purposes: Assume the company wants to sell each boat for 20% more than the cost to pro...
Record the following transactions on the books of Wildhorse Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)...
Gray Stevens and Mary James are production managers in the customer electronics division of General Electronics Company, which has several dozen plants scattered in locations throughout the world....
Shannon's Brewery has developed a super-premium craft beer to be marketed as Shannon's Irish Stout. The cost of production (brewing, canning, etc) is about $3.89 per six-pack. If Shannon's needs an...
A firm has net working capital of $393, net fixed assets of $2,364, sales of $6,000, and current liabilities of $800. How many dollars worth of sales are generated from every $1 in total assets?
A company has $6.00 per unit in variable costs and $3.60 per unit in fixed costs at a volume of 50,000 units. The company marks up total cost by 0.49. What price should be charged if 59,000 units a...
A firm's profit margin is less than its peer group's. Which of the following statements draws an incorrect implication from this comparison between asset utilization ratios? a. The firm may not be...
Bramble Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Huntswell Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year 2014.
Crescent Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $66 per unit, of which $33 is product cost and $33 is selling and administrative expenses. In additio...
Financial information is presented here for two companies. Fill the missing amounts. Calculate the margin and the gross profit rate for the each company. Round answer to 0 decimal place.
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance. The company desires a $37.00 profit margin per hour of labor...
The fitted regression is Sales = 920 - 27.5 Price. (a-1) If Price = 1 , what is the prediction for Sales? (a-2)Choose the correct statement. A. A decrease in price decreases sales. B. An i...
Lenovo (LNVGY) CS% Dell (DELL) CS% Hewlett Packard (HPO) CS % Fiscal year ended ($ in millions) Salas Revenue 16,605 61,494 126.033 COGS 14,815 50,098 96,089 Gross Profit 1,790 11,396...
1. Fill In the missing data for the retail organization. First Quarter Second Quarter Third Quarter Fourth Quarter Sales $10 $15 Gross margin $4 $5 Ending merchandise inventory $5 $5 Beginni...
Treble Inc. planned and manufactured 250,000 units of its single product in 2016, its first year of operations. Variable manufacturing costs were $.30 per unit of production. Planned and actual fix...
Buffalo Windows manufactures and sells custom storm windows for three-season porches. Buffalo also provides installation service for the windows. The installation process does not involve changes i...
On December 31, 2017 Felt Company's inventory burned. Sales and purchases for the year had been $1,500,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2017) was $170,000; in the pa...
Suppose that for a company manufacturing calculators, the cost, revenue, and profit equations are given by C= 70.000 + 40x. R = 200x- x^2/20. P = R-C where the production output in 1 week is x calc...
On May 10, 2017, Tamarisk Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2017. Greig agrees to pay the full contract price of $2,110 on July 15, 2017. The cost of the goo...
Define each of the following terms: a. Operating plan; financial plan. b. Spontaneous liabilities; profit margin; payout ratio. c. Additional funds needed (AFN); AFN equation; capital intensity...
Sep. 8: Sold merchandise inventory to Hilton Company. $6,200, on account. Terms 3 15, n 35. Cost of goods, $2,542. Begin by preparing the entry to journalize the sale portion of the transaction. Do...
Hummingbird Company uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows: Variable costs...
Transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $162,270). 297,000 b. Received merchandise returned by customers as unsatisfactory (but...
The rate of change in revenue for Under Armour from 2004 through 2009 can be modeled by {dR} / {dt} = 13.897 t + {284.653} / {t}, where R is the revenue (In millions of dollars) and t Is the time (...
A company has $6.70 per unit in variable costs and $3.80 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.53, what price should be charged if 66,000 unit...
The Sports Addition reports net sales of $2 million, cost of goods sold of $1 million, operating expenses of $500,000, and other expenses of $100,000. The Company's gross profit ratio is: a. 50%. b...
Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service charge for credit card sales is ass...
Accounting for credit card sales Levine Company uses the perpetual inventory system and allows customers to use two credit cards in charging purchases. With the Suntrust Bank Card, a 4% service ch...
Practice Assignment Gradebook ORION Downloadable eTextbook signment FULL SCREENPRINTER VERSION BACK Problem 4.08 Your answer is incorrect. Try again. The Cullumber Timber Company has the following...
Suppose Steel City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $35. Steel City projects sales of 525 10-inch skillets per month. The production costs are $12 per...
The price of crude oil during the period 2000-2010 can be approximated by P (t) = 6 t+ 18 dollars per barrel (0 less than or equal to t less than or equal to 10) in year t, where t = 0 represents 2...
Use the following account numbers and corresponding account titles to answer the following question. Account No. Account Title 1 Cash Merchandise inventory Cost of goods sold Transportation out Divi
Shannon Enterprises reports the following information on its year-end income statement: Net Sales 150,000 Operating Expenses $30,000 Cost of Goods Sold 90,000 Other Income 10,000 Required Calcu...
Vegas Company has the following unit costs: Variable manufacturing overhead $25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produ
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). | |2017 |2016 |N...
Lifetime Escapes generates an average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: Airfare $1,600 Hotel accommo...
A manufacturer sells $8/unit to wholesalers who mark up by 20% on the retailer purchase price. Afterward, the retailers mark up by 50.00% on wholesaler selling price. Here, after rounding to 2 deci...
A hotdog vendor must pay a monthly fee to operate a food cart in the city park. The cost in dollars of selling x hundred hotdogs in a month can be approximated by \\ C(x) = 200 + 75x. \\ a) Find th...
Glover Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Glover desires a profit equal to a 12% rate of return on assets. Assets of $785,000 are d...
A company using activity-based pricing marks up the direct cost of goods by 0.20 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are
A buyer purchased ties at $90 a dozen. What should the retail price for each tie in order to achieve a 48% markup?
The adjusted trial balance of Skysong Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $780,600, Delivery Expense $12,970, Sales R...
The following transactions were selected from the records of Evergreen Company: -July12 Sold merchandise to Wally Butler, who paid the $940 purchase with cash. The goods cost Evergreen Company $57...
Sandhill Co. provides this information for the month ended October 31, 2017: sales on credit $307,200; cash sales $154,800; sales discounts $5,990; and sales returns $22,030. Prepare the sales sec...
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Sandhill Co. enters sales and sales taxes separately on its cash registe...
Computing Markups The predicted 2009 costs for Osaka Motors are as follows: Manufacturing costs Seling and Administrative Costs Variable $100,000 Variable $300,000 Fixed 230,000 Fixed 200,000 Aver...
What do you predict will happen to the markup in the market for smart racquets?
The Tidewater State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be repriced with in the next 90 days. This bank also has $800 in total liabilities, $400 of...
A company has been trying to develop a reputation and perspective of a high quality item. The standard price for one dozen pierogis has been $5.99 per dozen. This price is a little higher than the...
Hey Chegg, I have 2 answers for each question highlighted in bold. I just don't know which answer is correct. I believe the correct answers are the first choices. Can you please tell me the correct...
Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts
Dean Grocers purchased goods with a list price of $50,000, subject to trade discount of 10%, with a 2% cash discount if payment is made within 10 days on the invoice date. Dean uses the gross metho...
Below are amounts found In the Income statements of three companies For each company calculate a gross profit b operating income c income before income taxes and d net income Negative amounts shoul...
A manufacturer has a monthly fixed cost of $45,000 and a production cost of $9 for each unit produced. The product sells for $40 per unit. What is the cost function? What is the revenue function? W...
The following information is available for October for Oak Leaf Company. A fire destroyed Oak Leaf's October 31 inventory, leaving undamaged inventory with a cost of $9,000. Using the gross profit...
The Nguyen Company sells beautiful oriental water fountains through wholesalers and retailers. They suspect that the retailer is taking an extra 15% more in markup than they should, but Nguyen Mana...
Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of the cookies will crack and be discarded. Angie wants a 60% markup on cost and produces 100 cooki...
Assume OMG uses the periodic method of accounting for inventory. A fire destroyed the retail store during June. Only the following information is available from the accounting records. OMG Company...
Describe and discuss the two methods of allocating revenues of a bundled package to the individual products in that package. Describe any special problems associated with the method.
Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $39,930. Purchases since January 1 were $93,790; freight-in, $3,800; purchase retu...
Cecil Green sells golf hats. He knows that most people will not pay more than $20 for a golf hat. Ceeil needs a 40% markup on cost. What should Cecil pay for his golf hats?
During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:...
Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $18, direct labor $7, variable manufacturing overhead $5, fixed manufacturing overhead $...
Largo. Inc., which uses a volume-based cost system, produces cot condos, and has a gross profit margin of 40%. Direct materials cost $24 per unit, and direct labour costs $15 per unit. Manufacturin...
1. On December 15, 2016, Rigsby Sales Co. sold a tract of land that cost $3,800,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms...
Presented below is information related to the Kevin Garnett Company for the current year: Beginning Inventory $600,000 Purchases 1,500,000 Total goods available for sale $2,100,000 Net Sales 2...
Alexis Co. reported the following information for May: Part A Units sold 5,000 units Selling price per unit $800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What...
A company has $6.70 per unit in variable costs and $4.00 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.44, what price should be charged if 69,000 unit...
a. Selected financial statement data for Schemitzer Inc. is shown below: 2016 2015 Balance sheet Inventories 60,000 48,000 Ratios Gross profit ratio for 2016 40% Inventory turnover ratio for...
The following is Talley Company's 2010 income statement. Sales revenue $571,300 Cost of goods sold 342,780 Gross margin 228,520 Operating expenses 102,300 Operating income $126,220 (a). What is th...
11. If a health plan covers 150,000 lives, expects 25 myocardial infartions (MIs) to occur each year within the covered lives, expects a length of stay of 4.5 days for each MI, and has to pay an av...
Comtel Electronics Company's predicted 2014 variable and fixed costs are as follows: Variable Costs Fixed Costs Manufacturing $400,000 $260,000 Selling and administrative 180,000 50,400 Total $580...
Managers in merchandising firms place a great deal of importance on the management of their gross margin. Describe what gross margin is and why its management or control is so important in merchand...
Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: 1) Purchased $12,000 of merchandise on account under terms 3/10, n/30. 2) Returned $1,200 (list...
A service business estimates its direct labor costs to be $3,250,000 for the year. The estimated direct labor hours are 50,000. Overhead is allocated based on direct labor hours, and estimated over...
Mademoiselle Company produces women's handbags. The cost of producing 1,210 handbags is as follows: Direct materials $15,900 Direct labor 8,100 Factory overhead 5,600 Total manufacturing cost $29,600
United importers reports net income $50,000 and COGS of $300,000. If the company's gross profit rate was 40%, net sales were? The answer is 500,000 but can you please explain how to get there?
Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $198,000 and Cost of Goods Sold of $68,300. Candy Electronics Corp. reported Net Sales of $56,000 and Cost of G...
Cynthia Inc. manufactures laptops. The following per unit cost information is available: direct materials $40, direct labor $15, variable manufacturing overhead $15, fixed manufacturing overhead $4...
John's Pet Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special or...
The opening inventory for the boys department on March 1 $150,0000 at cost and $260,000 at retail. During the month, the department received merchandise that cost $95,000 with a 51% markup. Find th...
The Estrada Company uses cost-plus pricing with a 0.32 markup. The company is currently selling 100,000 units. Each unit has a variable cost of $3.10. In addition, the company incurs $196,000 in fi...
Grodahl Electronics is a wholesaler that sells on terms of 2/10, n/30. Suppose it sold video equipment to Costco for $600,000 on open account on January 10. Payment (net of cash discount) was recei...
Calculate the total cost, total selling price and selling price per brownie. Item Total quantity bought Unit cost Total cost Percent markup on cost Total selling price Percent that will spoil Sell...
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total Direct materials $420 Direct labor $320 Va...
At the profit maximizing level of output for a monopolist: a. P = AR and AR = AC. b. P > MC and MR = MC c. P = MC and MR > MC. d. P = MR and AC = MC Holding supply conditions constant, the costs...
Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross prof...
Japes Rental, Inc. had inventory records with the following amounts: Beginning Inventory $10,000 Purchases $25,000 Japes had an unfortunate event occur causing severe destruction of his inventory...
The predicted 2014 costs for Osaka Motors are as follows: Average total assets for 2014 are predicted to be $5,000,000. (a) If management desires a 12 percent rate of return on total assets, what a...
Plover Corporation, a merchandising company, reported the following results for March: Sales $200,000 Cost of goods sold (all variable) $75,000 Total variable selling expense $12,500 Total fixed s...
On March 2, Kwang Company sold $846,000 of merchandise to Sensat Company, terms 3/10, n/30. The cost of the merchandise sold was $594,000. Record the journal entries for the transaction. Account...
Budgets Sunshine Corporation has found that 60% of its sales in any given month are credit sales, while the remainders are cash sales. Of theCredit sales, the company has experienced the following...
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $87,000 August 107,000 September 117,000 Cash sales are normally 30% of total sales and all credi
Emblems For You sells specialty sweatshirts. The purchase price is $10 per unit plus 10% tax and a shipping cost of 50 cents per unit. When the units arrive, they must be labeled, at an additional...
At a wholesale auction, a used car dealer wants to bid on a mint-condition 1972 Cadillac Eldorado convertible. She thinks that the car could be resold for $36,000 in her showroom. She typically
1.A retailer purchases goods that have a list price of $7,500. The manufacturer allows a trade discount of 40-25-10 and a cash discount of 2/10, net 30. If the retailer takes both discounts, how mu...
Horton Small Engine Repair charges $45 per hour of labor. It has a material loading percentage of 40%. On a recent job replacing the engine of a riding lawnmower, Horton worked 4 hours and used par...
Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows: Advertising Expense $14,000 Arthur Tatum, Capital 140,000 Arthur Tat...
Last year, Godinho Corp. had $250 million of sales, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company h...
Eakins Corporation has just developed a new product. At an expected sales level of 60,000 units per year, the company anticipates that the following costs will be incurred: Per Unit Total Variable...
A shoe company will make a new type of shoe. The fixed cost for the production will be $14,000. The variable cost will be $28 per pair of shoes. The shoes will sell for $98 for each pair. What is t...
I need help with part B. I got the first part. Plains Peanut Butter Company recently acquired a peanut-processing company that has a normal annual capacity of 3,000,000 pounds and that sold 2,700,...
In comparison of 2014 to 2013 performance, Weir Company's inventory turnover decreased substantially, although sales and inventory amounts were essentially unchanged. Which of the following stateme...
Lebo Company produces telephones. The following information is available for this product: -Fixed cost per unit $20.45 -Variable cost per unit 27.55 -Desired ROI per unit 12.48 What is the mark...
James Page works in a local music store where he sells guitars for $148.17 each. If he maintains a markup of 59.7% on selling price, what is the cost of a guitar to James? a) $236.63 b) $88.46 c...
A company has $7.80 per unit in variable costs and $3.30 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.47, what price should be charged if 60,000 units
Adams Corporation estimates that it lost $111,700 in inventory from a recent flood. The following information is available from the records of the company's periodic inventory system: beginning inv...
How I can determine the proper amount of service revenue to report for the month. Lindstrom Design Services billed a total of $245,100 for the month of August, including 9 percent federal excise t...
Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2014. The sales price includes an installation fee, which is valued at $40,000. The fair value of the goods...
The selling price of lumber at Home Depot is $4,740, percent markup on cost is 20%. Calculate the actual cost.
What amount, if any, must be included in gross income by the following individuals? 1. Ann received $2,500 from her insurance company when her car which cost $3,500 was stolen. 2. Barry received...
A company has net sales of $630,600 and cost of goods sold of $472,950. What is the company's gross profit percentage?
During 2014, Welch Manufacturing Company incurred $115,000,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the enti...
If using ABC, Toto Inc. calculates total overhead to be applied to Product X to be $3,000, while Sales of X was $9,900, Direct Materials for X was $3,000 and Direct Labor was $2,000. What is the to...
A manufacturing company produces and sells 40,000 units of a single product. Variable costs total $80,000 and fixed costs total $120,000. If unit is sold for $8, what markup percentage is the compa...
All- pages Book company reports the following inventory transaction during the current month. All- Pages uses the perpetual method for inventory. Required: Calculate Cost of goods Sold and Ending...
Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: Sales $2,300,000 Operating income $414,000 Total assets $718,750 Current liabilities $180,000 Target rate...
Excerpts from TPX Company's December 31, 2013 and 2012, financial statements are presented below: 2013 2012 Accounts receivable $86,000 $80,000 Inventory 87,000 71,000 Net sales 440,000 381,000 Cos...
Walter Company's multistep income statement shows cost of goods sold of $60,000, a gross margin of $42,000, operating income of $12,000 and a $20,000 loss on the sale of land. Based on this informa...
Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140 each. Direct materials cost $18 per unit, and direct labor costs $10 per unit. Manufacturing overhead is...
Trombatore Corporation provided the following budget information: UNIT SALES: August 12,000 ; September 16,000 ; October 21,000 ; November 20,000 ; a.The budget sales price for each unit is $20. b....
Net sales for the year were $450,000 and cost of goods sold was $261,000 for the company's existing products. A new product is presently under development and will have an expected selling price of...
Merchandise costing $2,300 is sold for $3,300 on terms 2/10, n/30. If the buyer pays within the discount period, prepare the journal entries needed at the time of sale and collection, assuming the...
Stubbs Company uses the perpetual inventory method. On January 1, 2016, Stubbs purchased 1,300 units of inventory that cost $11.00 each. On January 10, 2016, the company purchased an additional 600...
Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $193,000 and Cost of Goods Sold of $65,600. Candy Electronics Corp. reported Net Sales of $51,000 and Cost of Go...
The elasticity of sweaters for pet duck-billed platypus is -1.56 in the Canada. In Australia, the elasticity of these sweaters is -3.62. However, Canadian sweaters have to be warmer, so the margina...
AutoPartsWarehouse.com purchases chrome rims for 460 for a set of 4 and uses a markup of 45 of cost. What will be the percent markup on selling price? Write answer as a percentage and round to the...
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $36, direct labor $22, variable manufacturing overhead $14, fixed manufacturing...
ACME Corporation, a merchandising company, reported the following results for July: Sales: $270,000 Cost of goods sold (all variable): $127,300 Total variable selling expense: $21,400 Total fix...
Following are certain operating data for Durango Manufacturing Company for January 2016: Total sales were $1.800.000. On which the company earned a 40% gross profit. Durango uses a predetermined ma...
The following information pertains to the January operating budget for Casey Corporation, a retailer. |Budgeted sales are $200,000 for January |Collections of sales are 50% in the month of sale an...
On July 4, Susie's Restaurant accepts a Visa card for a $340 dinner bill. Visa charges a 4% service fee. Prepare the entry on Susie's books related to the transaction
The following account balances appeared on the company's trial balance at year-end: -Sales Returns and Allowances $630 -Accounts Receivable 10,300 -Sales Discounts 1,350 -Sales Revenue 70,200...
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $5,700 Net s...
At a sales volume of 37,500 units. Carne Company's sales commissions (a cost that is variable with respect to sales volume) total $611,250. To the nearest whole dollar, what should be the total sa...
For January, budgeted gross margin is _______. The following information pertains to the January operating budget for Casey Corporation, a retailer: Budgeted sales are $200,000 for January. Collect...
On January 1, JKR Shop had $650,000 of inventory at cost. In the first quarter of the year, it purchased $1,790,000 of merchandise, returned $25,100, and paid freight charges of $39,600 on purchase...
The markup on a birdcage is 44% of the selling price. If the birdcage sells for $45.71, what was the cost to the nearest cent?
If exactly 210 people sign up for a charter flight, Leisure World travel agency charges $308 a person. However, if more than 210 people sign up for the flight (assume this is the case), then each f...
The unit sell price p (in dollars) and the quantity demanded of a certain product is given by the demand equation p=80\ e^{-0.002x} a) How many units must be sold to maximize revenue? b) What price...
Given the following and Using the Gross Profit Method, fill in the missing numbers. Show all calculations
If an item has a cost of $12.00 and a selling price of $20.00, the percentage markup on selling is 40%. True or False.
Suppose that there are 10 identical firms in the industry, which are Cournot competitors. The inverse demand function is P(q_1 + q_2 + + q_10) = 4,000 - 4 (q_1 + q_2 + + q_10). Suppose that the tot...
Northgate Publishers, Inc., had sales of $900,000 during 20X1, 80% of them on credit and 20% for cash. During the year, accounts receivable increased from $60,000 to $90,000, an increase of $30,000...
Fortune Brands Home & Security, Inc.sells Master Lock padlocks. It reported an increase in net sales from $3.7 billion in 2011 to $4.0 billion in 2012, and an increase in gross profit from $1.2 bil...
Which of the following is commonly forecasted as a percent of sales? a) Common stock b) Gross profit c) Long-term debt d) Revolving credit
Winnebagel Corp. currently sells 40,000 motor homes per year at $78,000 each, and 17,000 luxury motor coaches per year at $115,000 each. The company wants to introduce a new portable camper to fill...
Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,390. Purchases since January 1 were $92,340; freight-in, $4,700; purchase retu...
A company has $45 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to...
The following information is from the 2016 accounting records of Oregon Company: Sales revenue $625,000 Beginning inventory (1/1/2016) $254,000 Purchases $366,000 Historical gross margin ratio...
Ross Sales had the following transactions for DVDs in 2010, its first year of operations. Date Transaction Description Amounts Jan. 20 Purchased 75 units @ $15 $1,125 Apr. 21 Purchased 450 units @...
You are given the following information for Smashville, Inc. Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter...
MBI, Inc., had sales of $39 million for fiscal 2013. The company's gross profit ratio for that year was 20%. Required: 1. Calculate the gross profit and cost of goods sold for MBI, Inc, for fiscal...
On May 31, Brunet Company has net sales of $370,000 and cost of goods available for sale of $260,000. Compute the estimated cost of the ending inventory, assuming that the gross profit rate is 35%.
MBI, Inc., had sales of $40 million for fiscal 2013. The company's gross profit ratio for that year was 23%. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2013. Assu...
Fill in the missing amounts. Yoste Company Noone Company Sales revenue $90,000 Sales returns and allowances $ 5,000 Net sales 84,000 100,000 Cost of goods sold 58,000 Gross profit 40,000 Opera...
A company has $7.00 per unit in variable costs and $4.10 per unit in fixed costs at a volume of 50,000 units. If the company markes up total cost by 0.57, what price should be charged if 67,000 uni...
The 2015 income statement for TeleTech is shown here: Net Sales $35,000,000.00 Cost of Goods Sold 15,000,000.00 Gross Profit 20,000,000.00 Selling and Admin. Expenses 1,000,000.00 Depreciating Expe...
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 : $480,000 Inventory, Janua...
A firm has $1,900,000 in sales, a Lerner index of 0.59, and a marginal cost of $40 and competes against 1,000 other firms in the relevant market. a. What price does this firm charge its customers?...
Target Costing: Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel estimate that the competitive selling price for the Camry in the upcoming model year will need t...
Wood-Mode Company is involved in the design, manufacture, and installation of various types of wood products for large construction projects. Wood-Mode recently completed a large contract for Stadi...
Reyes Company had a gross profit of $720,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year of operations as a retailer. Reyes's sales in its first year must h...
The following information for 2016 is available for Marino Company: The beginning inventory is $115,000. Purchases returns of $5,000 were made. Purchases of $287,000 were made on terms of 3/10,...
Morales Corporation produces microwave units. The following per unit cost information is available: Direct materials $38 direct labor $23 variable manufacturing overhead $12 fixed manufacturing ov...
When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate ending inventory. The following information is available for the 1st quarter of 2016: What was P...
Calculating Price Using a Markup Percentage of Cost : Grinnell Lake Gift Shop has decided to price the candles that it sells at cost plus 80%. One type of carved bear-shaped candle costs $12, and h...
Revolve Company's income statement information for 2013 and 2014 (a sole proprietorship) is as follows: 2013, 2014; Cost of goods sold, $(a), $59,300; Interest expense, 600, 0; Selling expenses, (b...
Presented below is information related to Metlock Corporation for the current year. Beginning inventory $606,400 Purchases $1,571,400 Total goods available for sale $2,177,800 Sales revenue $2,600...
Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 2,500 $60.00 $150,000 10 Puchase 7,500 68.00 510,000 28 Sale 3,750 120.00 450,000 30 Sale 1,250 120.00 150,000 Feb. 5 Sale 500 $120....
Minden Company estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually 40,000 ; Required investment in assets ;...
Presented below are two independent situations. a. On January 6, Brumbaugh Co. sells merchandise on account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16. Pryor Inc. pays the amount du...
Nicki is single and 46 years old. She sells her principal residence (adjusted basis $100,000) that she purchased five years ago for $435,000. What is the amount of Nicki's recognized gain on the sa...
On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available: Beginning inventory, July 1: $5,400 Net...
The selling price of lumber at Home Depot is $4,000, percent on cost is 30%. Calculate the actual cost.
Sutton's Electronic Repair Shop has budgeted the following time and material for 2017. Suttan's budgets 4,000 hours of repair time in 2017 and will bill a profit of $14 per labor hour along with a...
Eastport Company's Operating budget reveal the following information: Net Sales $400,000 Beginning Materials Inventory $23,000 Materials Purchased $185,000 Beginning Work In Process Inventory $64,...
Tony Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $36,900. Purchases since January 1 were $77,700; freight-in, $3,700; purchase ret...
Apr.1 Sold merchandise for $3,000, granting the customer terms of 2/10, EOM; invoice dated April 1. The cost of the merchandise is $1,800. Apr.4 The customer in the April 1 sale returned merchandi...
Presented below is information related to Waterway Company: cost retail - Beginning inventory: cost $57,390, retail $102,500 - Purchases (net): cost $123,320, retail $207,100 - Net markups $10,...
On May 10, Fillmore Company sold merchandise for $3,000 and accepted the customer's America Bank MasterCard. America Bank charges a 4% service charge for credit card sales. Prepare the entry on Fi...
Blossom's Agency sells an insurance policy offered by Capital Insurance Company for a commission of $116 on January 2, 2017. In addition, Blossom will receive an additional commission of $11 each y...
Kay's Beauty Supply uses the gross profit method to estimate the cost of ending inventory for in-house interim financial statements. Based on the following information for March, calculate Kay's Be...
The owner of Genuine Subs Inc.hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labour and materials costs (food, serving conta
Fosbre Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $175,650, and purchases for January through April totaled $585,500. Sales for the same period were $706,700. F...
XYZ Construction Company bid a project for $1,000,000 that had a budget of $820,000. Upon completion, XYZ?s minimum profit and overhead markup was $123,000; profit from estimating i.e. bidding and...
Thermal Rising, Inc., makes paragliders to sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has design
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $145 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost." a. What is the equ...
A forecast using a percentage of sales model expects sales to increase by 4.8% annually over the next 4 years. If costs are proportional to sales at 80%, and last year's sales were $2,200, the net...
Information from Abbot Corporation's most recent income statement appears below: Sales (all on account) $52,000 Cost of goods sold 36,000 Gross margin 16,000 Selling and administrative expense 12,8...
Pearson Company uses a periodic inventory system. During the first quarter of 2014, it sold 13,000 cases of Product A for $140,000. Facts related to its beginning inventory and purchases are as fol
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $130 for a comforter. Misu Sheet wants to advertise the comforter as percent markup on cost." a) what is the equi...
The following information is taken from the financial statements of a company for the current year: Current assets $408,000 Total assets 903,000 Cost of good sold 663,000 Gross Profit 213,000...
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