In: Accounting
Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below:
| Flight Café Planning Budget For the Month Ended July 31 |
||
| Budgeted meals (q) | 26,000 | |
| Revenue ($4.30q) | $ | 111,800 |
| Expenses: | ||
| Raw materials ($2.00q) | 52,000 | |
| Wages and salaries ($6,300 + $0.20q) | 11,500 | |
| Utilities ($2,000 + $0.05q) | 3,300 | |
| Facility rent ($3,800) | 3,800 | |
| Insurance ($2,400) | 2,400 | |
| Miscellaneous ($700 + $0.10q) | 3,300 | |
| Total expense | 76,300 | |
| Net operating income | $ | 35,500 |
In July, 27,000 meals were actually served. The company’s flexible budget for this level of activity appears below:
| Flight Café Flexible Budget For the Month Ended July 31 |
||
| Budgeted meals (q) | 27,000 | |
| Revenue ($4.30q) | $ | 116,100 |
| Expenses: | ||
| Raw materials ($2.00q) | 54,000 | |
| Wages and salaries ($6,300 + $0.20q) | 11,700 | |
| Utilities ($2,000 + $0.05q) | 3,350 | |
| Facility rent ($3,800) | 3,800 | |
| Insurance ($2,400) | 2,400 | |
| Miscellaneous ($700 + $0.10q) | 3,400 | |
| Total expense | 78,650 | |
| Net operating income | $ | 37,450 |
1. Compute the company’s activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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In: Accounting
Outside of main declare two constant variables: an integer for number of days in the week and a double for the revenue per pizza (which is $8.50). Create the function prototypes.
Create main
Inside main:
Submit the .cpp file and a screen shot in Canvas
Screen Shots:
please write the code for c++
In: Computer Science
Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 224 numerical entries from the file and r = 49 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.
(i) Test the claim that p is less than 0.301. Use ? = 0.10.
(a) What is the level of significance? State the null and alternate hypotheses.
H0: p = 0.301; H1: p > 0.301
H0: p = 0.301; H1: p < 0.301
H0: p < 0.301; H1: p = 0.301
H0: p = 0.301; H1: p ? 0.301
(b) What sampling distribution will you use?
The Student's t, since np > 5 and nq > 5.
The standard normal, since np < 5 and nq < 5.
The Student's t, since np < 5 and nq < 5.
The standard normal, since np > 5 and nq > 5.
What is the value of the sample test statistic? (Round your answer to two decimal places.)
(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)
(i) Sketch the sampling distribution and show the area corresponding to the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ??
At the ? = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.
At the ? = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant.
At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant.
At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.
(e) Interpret your conclusion in the context of the application.
There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.
There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.
(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.
No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.
No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.
Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.
Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.
(iii) Comment on the following statement: If we reject the null hypothesis at level of significance ?, we have not proved Ho to be false. We can say that the probability is ? that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.
We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited
In: Statistics and Probability
Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 215 numerical entries from the file and r = 47 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. (i) Test the claim that p is less than 0.301. Use ? = 0.10. (a) What is the level of significance? State the null and alternate hypotheses. H0: p < 0.301; H1: p = 0.301 H0: p = 0.301; H1: p < 0.301 H0: p = 0.301; H1: p ? 0.301 H0: p = 0.301; H1: p > 0.301 (b) What sampling distribution will you use? The standard normal, since np > 5 and nq > 5. The Student's t, since np < 5 and nq < 5. The standard normal, since np < 5 and nq < 5. The Student's t, since np > 5 and nq > 5. What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find the P-value of the test statistic. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ?? At the ? = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant. At the ? = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant. At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant. At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) Interpret your conclusion in the context of the application. There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301. There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301. (ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits. No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts. No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts. Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. (iii) Comment on the following statement: If we reject the null hypothesis at level of significance ?, we have not proved Ho to be false. We can say that the probability is ? that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud? We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited. We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited. We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited. We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
In: Statistics and Probability
Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 216 numerical entries from the file and r = 49 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.
(i) Test the claim that p is less than 0.301. Use α = 0.10.
(a) What is the level of significance?
State the null and alternate hypotheses.
H0: p = 0.301;
H1: p > 0.301H0:
p = 0.301; H1: p <
0.301 H0: p <
0.301; H1: p = 0.301H0:
p = 0.301; H1: p ≠ 0.301
(b) What sampling distribution will you use?
The standard normal, since np > 5 and
nq > 5.The Student's t, since np < 5 and
nq < 5. The standard normal, since
np < 5 and nq < 5.The Student's t, since
np > 5 and nq > 5.
What is the value of the sample test statistic? (Round
your answer to two decimal places.)
(c) Find the P-value of the test statistic.
(Round your answer to four decimal places.)
Sketch the sampling distribution and show the area corresponding to the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?
At the α = 0.10 level, we reject the null hypothesis
and conclude the data are statistically significant.At the α = 0.10
level, we reject the null hypothesis and conclude the data are not
statistically significant. At the α = 0.10
level, we fail to reject the null hypothesis and conclude the data
are statistically significant.At the α = 0.10 level, we fail to
reject the null hypothesis and conclude the data are not
statistically significant.
(e) Interpret your conclusion in the context of the application.
There is sufficient evidence at the 0.10 level to
conclude that the true proportion of numbers with a leading 1 in
the revenue file is less than 0.301.There is insufficient evidence
at the 0.10 level to conclude that the true proportion of numbers
with a leading 1 in the revenue file is less than
0.301.
(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.
No. The revenue data file does not seem to include
more numbers with higher first nonzero digits than Benford's law
predicts.Yes. The revenue data file seems to include more numbers
with higher first nonzero digits than Benford's law
predicts. Yes. The revenue data file does
not seem to include more numbers with higher first nonzero digits
than Benford's law predicts.No. The revenue data file seems to
include more numbers with higher first nonzero digits than
Benford's law predicts.
(iii) Comment on the following statement: If we reject the null hypothesis at level of significance α, we have not proved Ho to be false. We can say that the probability is α that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?
We have not proved H0 to be false.
Because our data lead us to reject the null hypothesis, more
investigation is merited.We have not proved H0 to
be false. Because our data lead us to accept the null hypothesis,
more investigation is not merited. We have
not proved H0 to be false. Because our data lead
us to reject the null hypothesis, more investigation is not
merited.We have proved H0 to be false. Because
our data lead us to reject the null hypothesis, more investigation
is not merited.
In: Statistics and Probability
Recall that Benford's Law claims that numbers chosen from very
large data files tend to have "1" as the first nonzero digit
disproportionately often. In fact, research has shown that if you
randomly draw a number from a very large data file, the probability
of getting a number with "1" as the leading digit is about 0.301.
Now suppose you are an auditor for a very large corporation. The
revenue report involves millions of numbers in a large computer
file. Let us say you took a random sample of n = 215
numerical entries from the file and r = 47 of the entries
had a first nonzero digit of 1. Let p represent the
population proportion of all numbers in the corporate file that
have a first nonzero digit of 1.
(i) Test the claim that p is less than 0.301. Use
α = 0.05.
(a) What is the level of significance?
State the null and alternate hypotheses.
H0: p < 0.301; H1: p = 0.301H0: p = 0.301; H1: p > 0.301 H0: p = 0.301; H1: p < 0.301H0: p = 0.301; H1: p ≠ 0.301
(b) What sampling distribution will you use?
The Student's t, since np > 5 and nq > 5.The Student's t, since np < 5 and nq < 5. The standard normal, since np > 5 and nq > 5.The standard normal, since np < 5 and nq < 5.
What is the value of the sample test statistic? (Round your answer
to two decimal places.)
(c) Find the P-value of the test statistic. (Round your
answer to four decimal places.)
Sketch the sampling distribution and show the area corresponding to
the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or
fail to reject the null hypothesis? Are the data statistically
significant at level α?
At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.
(e) Interpret your conclusion in the context of the
application.
There is sufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.
(ii) If p is in fact less than 0.301, would it make you
suspect that there are not enough numbers in the data file with
leading 1's? Could this indicate that the books have been "cooked"
by "pumping up" or inflating the numbers? Comment from the
viewpoint of a stockholder. Comment from the perspective of the
Federal Bureau of Investigation as it looks for money laundering in
the form of false profits.
No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.
(iii) Comment on the following statement: If we reject the null
hypothesis at level of significance α, we have not proved
Ho to be false. We can say that the probability
is α that we made a mistake in rejecting
Ho. Based on the outcome of the test, would you
recommend further investigation before accusing the company of
fraud?
We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited. We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
In: Statistics and Probability
Recall that Benford's Law claims that numbers chosen from very
large data files tend to have "1" as the first nonzero digit
disproportionately often. In fact, research has shown that if you
randomly draw a number from a very large data file, the probability
of getting a number with "1" as the leading digit is about 0.301.
Now suppose you are an auditor for a very large corporation. The
revenue report involves millions of numbers in a large computer
file. Let us say you took a random sample of n = 219
numerical entries from the file and r = 47 of the entries
had a first nonzero digit of 1. Let p represent the
population proportion of all numbers in the corporate file that
have a first nonzero digit of 1.
(i) Test the claim that p is less than 0.301. Use
α = 0.05.
(a) What is the level of significance?
State the null and alternate hypotheses.
H0: p = 0.301; H1: p > 0.301H0: p = 0.301; H1: p ≠ 0.301 H0: p = 0.301; H1: p < 0.301H0: p < 0.301; H1: p = 0.301
(b) What sampling distribution will you use?
The standard normal, since np > 5 and nq > 5.The standard normal, since np < 5 and nq < 5. The Student's t, since np > 5 and nq > 5.The Student's t, since np < 5 and nq < 5.
What is the value of the sample test statistic? (Round your answer
to two decimal places.)
(c) Find the P-value of the test statistic. (Round your
answer to four decimal places.)
Sketch the sampling distribution and show the area corresponding to
the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or
fail to reject the null hypothesis? Are the data statistically
significant at level α?
At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.
(e) Interpret your conclusion in the context of the
application.
There is sufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.
(ii) If p is in fact less than 0.301, would it make you
suspect that there are not enough numbers in the data file with
leading 1's? Could this indicate that the books have been "cooked"
by "pumping up" or inflating the numbers? Comment from the
viewpoint of a stockholder. Comment from the perspective of the
Federal Bureau of Investigation as it looks for money laundering in
the form of false profits.
No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.
(iii) Comment on the following statement: If we reject the null
hypothesis at level of significance α, we have not proved
Ho to be false. We can say that the probability
is α that we made a mistake in rejecting
Ho. Based on the outcome of the test, would you
recommend further investigation before accusing the company of
fraud?
We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited. We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.
In: Statistics and Probability
Income statement preparation On December 31,
20192019,
Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she charged her clients
$ 366 comma 000$366,000
for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of
$ 8 comma 050$8,050,
Ms. Chen paid annual salaries of
$ 48 comma 500$48,500
and
$ 35 comma 800$35,800
to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled
$ 34 comma 300$34,300
for the year. Expenses for office supplies, including postage, totaled
$ 10 comma 900$10,900
for the year. In addition, Ms. Chen spent
$ 17 comma 000$17,000
during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax-deductible expense) were
$ 2 comma 730$2,730
per month. Depreciation expense on the office furniture and fixtures was
$ 15 comma 200$15,200
for the year. During the year, Ms. Chen paid interest of
$ 14 comma 600$14,600
on the
$ 121 comma 000$121,000
borrowed to start the business. She paid an average tax rate of
30 %30%
during
20192019.
a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31,
20192019.
b. Evaluate her
20192019
financial performance.
a. Prepare an income statement for Cathy Chen, CPA, for the year ended December 31,
20192019.
Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)
|
Cathy Chen, CPA |
||||||
|
Income Statement |
||||||
|
for the Year Ended December 31, 2019 |
||||||
|
$ |
366000 |
||||
Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)
|
Less: Operating expenses |
||||||
|
$ |
|||||
|
Total operating expense |
$ |
|||||
|
Operating profits (EBIT) |
$ |
Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)
|
Net profits before taxes |
$ |
Complete the fragment of the income statement for Cathy Chen below: (Select the correct account from the drop-down menu and round to the nearest dollar.)
|
Net profits after taxes |
$ |
b. Evaluate her
20192019015
financial performance. (Select the best answer below.)
A.In her first year of business, Cathy Chen covered all her operating expenses and earned a net profit of
$ 60 comma 340$60,340
on revenues of
$ 366 comma 000$366,000.
B.In her first year of business, Cathy Chen covered all her operating expenses and earned a net profit of
$ 42 comma 238$42,238
on revenues of
$ 366 comma 000$366,000.
C.In her first year of business, Cathy Chen did not cover all her operating expenses, which resulted in a net loss of
$ 60 comma 340$60,340
on revenues of
$ 366 comma 000$366,000.
D.In her first year of business, Cathy Chen did not cover all her operating expenses, which resulted in a net loss of
$ 42 comma 238$42,238
on revenues of
$ 366 comma 000$366,000.
In: Accounting
1. You have been asked to assist Brandon Manufacturing Inc. prepare for an upcoming end-of-year meeting, since its accountant quit without notice. The following information for the year ended December 31, 2020 was prepared by the President’s secretary, who, trying to be helpful, has alphabetized the list:
Administrative staff salaries 52,000
Advertising and promotion 31,000
Bad debt expense 4,000
Commission expense - salespersons 88,000
Depreciation - factory buildings 16,850
Depreciation - sales office 7,700
Finished goods inventory - start of year 8,500
Finished goods inventory - end of year 6,100
Indirect materials used 4,800
Insurance expense – factory buildings 3,400
Insurance expense – sales vehicles 6,300
Property taxes - factory 21,900
Property taxes - sales office 4,100
Purchases - raw materials 87,000
Raw materials inventory - start of year 5,000
Raw materials inventory - end of year 3,500
Rent - production equipment 26,070
Repairs & maintenance - factory equipment 2,800
Repairs & maintenance - sales office equipment 3,060
Salaries - factory supervisor 92,000
Travel and entertainment expenses 112,000
Utilities – factory 14,600
Utilities – sales office 9,850
Wages and benefits - factory workers 169,000
Work-in-process inventory - start of year 14,200
Work-in-process inventory - end of year 18,900
Required:
12 a) Prepare EITHER a combined schedule of cost of goods manufactured and cost of goods sold for the year ended December 31, 2020 OR separate schedules for cost of goods manufactured and cost of goods sold, in good form. Use actual manufacturing overhead costs incurred.
4 b) What would the cost of goods manufactured be if manufacturing overhead was applied using a predetermined overhead rate of $11.75 per machine hour, and total machine hours were 16,000 during the year? Prepare the journal entry to dispose of the over- or under-applied overhead, assuming it is all allocated to Cost of Goods Sold and two separate T accounts are used for Manufacturing overhead.
1 c) What would the ending work-in-process inventory be if cost of goods manufactured was $180,000 and all other information remained the same?
|
Sales revenue |
$540,000 |
|
Variable expenses |
360,000 |
|
Contribution margin |
180,000 |
|
Fixed costs |
100,000 |
|
Operating income |
$ 80,000 |
2. Bradjoli Inc. produces a single product. The results of operations for a typical month are as follows:
The company produced and sold 120,000 kgs of product during the month, and there were no beginning or ending inventories. Bradjoli pays income tax at a rate of 25%.
Required:
a) At the typical sales volume, calculate:
3 i) the breakeven point is units sold and in sales dollars.
2 ii) the margin of safety as a percentage.
3 iii) the operating leverage. Using the operating leverage, determine the operating profit that Bradjoli would report if sales were to increase 40%.
4 b) Compute the target sales in units and sales dollars if Bradjoli wants to earn an after-tax profit of $162,000.
1 i) At this sales volume, what is the operating leverage?
1 ii) At this sales volume, determine the operating profit that Bradjoli would report if sales were to increase 40%.
4 c) Using the typical month’s operating results as the starting point, calculate the breakeven point if Bradjoli plans to invest in automation with a monthly fixed cost of $25,000 and expects this will reduce variable expenses by $0.50 per unit. Do you recommend the company undertake this investment? Why or why not?
In: Accounting