A company is using the breakeven chart to evaluate the decision of buying new machinery that will increase its fixed costs by $200,000 Below is the information of the company Variable cost per unit = $60 Total revenue = $1,360,000 Units sold = 8,500 units Total Cost = $710,000

a. Total fixed costs after increase of $200,000 is:

b. Total variable cost of the company:

c. New total costs after addition of $200,000

d. Breakeven point is equal to (after increase of fixed costs):

e. What is the margin of safety at an output level of 5,000 and the new TC after addition of $200,000? (Profit = Total revenue - Total costs)

f. If the company decided to lease a more advanced machine instead of buying the older one, the fixed cost will increase by $300,000 but the variable cost will decrease to be $40 per unit. Calculate the new break-even point (approximate)

ABC Catering is putting on a charity dinner. The average selling price for a ticket is $170. The variable

cost for the dinner is $110. ABC will also incur fixed costs such as room rental fees and other fixed costs,

totalling $30,000.

a. How much sales revenue must ABC Catering generate in order to break even?

b. How many tickets must ABC Catering attract in order to break even? Explain your answer.

c. What is ABC Catering’s profit or loss at each of the following possible ticket sales

levels: 450 tickets? 500 tickets? 525 tickets?

d. If variable costs increase by 5 % per dinner guest, what is the new breakeven point in terms of sales

revenue and tickets? Compare it to your answers to questions a and b, and explain the difference.

NOTE: Use simple income statements to support your explanations

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $75 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Kalamazoo Paper Company has three divisions: Recycling, Cardboard, and Paper. In order to determine the profit provided by each division, the company allocates all costs to the three divisions. As a result, for the year ended December 31, 2015, Kalamazoo reported a profit of $50,000 for Recycling, a profit of $60,000 for Paper, and a loss of $30,000 for Cardboard. If Cardboard has avoidable costs of $40,000 and unavoidable costs of $50,000 which of the following actions should be taken by the company? Select one:

a. Eliminate the Cardboard Division because the division's unavoidable costs exceed the amount of the loss.

b. Continue the Cardboard Division because the revenue generated by the division exceeds the avoidable costs.

c. Continue the Cardboard Division because the revenue generated by the division exceeds the unavoidable costs.

d. Eliminate the Cardboard Division because the company's total net income would increase by $30,000.

Ferntree Experiences has two operating divisions, Winery and Restaurant. The two divisions have a marketing agreement to provide incentives to customers. The Winery division offers coupons good for meals at the restaurant and the restaurant division offers coupons good for wine tasting and purchases. Annual profits are $12 million. The two divisions meet the requirements for segment disclosures.

Before the transactions are considered, revenues and costs (in thousands of dollars) for the two divisions are as follows.

After adjusting appropriately for the effect of the marketing agreement, the revenues and costs are as follows.

The value of the coupons issued by the Restaurant Division was double the value of the coupons issued by the Winery Division.

What was the value of the coupons issued by the Winery Division? What was the value of the coupons issued by the Restaurant Division?

Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the following questions.?

Round answers to two places after the decimal where applicable.

Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 2.10 .

Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67 %.

Abe must have prices. Abe's prices

must have changed by %

Therefore, Abe's total revenue

At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 75 %.

If Webs-R-Us has a price elasticity of demand at 0.70 , we can expected the number of websites designed to The number of websites will change by % Therefore, Webs-R-Us's total revenue will

The following information was taken from the records of Vega Inc. for the year 2015: income tax applicable to income from continuing operations R$119,000, income tax applicable to loss on discontinued operations R$25,500, and unrealized holding gain on non-trading equity securities R$15,000.

Ordinary shares outstanding during 2015 were 100,000.

Requirement:

1. Prepare a comprehensive income statement for 2015 using the one statement approach

2. Prepare a retained earnings statement for 2015.