College SpiritCollege Spirit

Calendars imprints calendars with college names. The company has fixed expenses of

$ 1 comma 065 comma 000$1,065,000

each month plus variable expenses of

$ 3.50$3.50

per carton of calendars. Of the variable? expense,

7575?%

is cost of goods?sold, while the remaining

2525?%

relates to variable operating expenses. The company sells each carton of calendars for

$ 13.50$13.50.

Read the

requirements

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Requirement 1. Compute the number of cartons of calendars that

College SpiritCollege Spirit

Calendars must sell each month to breakeven.??

Begin by determining the basic income statement equation.

Using the basic income statement equation you determined above solve for the number of cartons to break even.

Requirement 2. Compute the dollar amount of monthly sales

College SpiritCollege Spirit

Calendars needs in order to earn

$ 304 comma 000$304,000

in operating income.??

Begin by determining the formula.

?(Round the contribution margin ratio to two decimal? places.)

Requirement 3. Prepare the? company's contribution margin income statement for June for sales of

460 comma 000460,000

cartons of calendars.

??

Requirement 4. What is? June's margin of safety? (in dollars)? What is the operating leverage factor at this level of? sales?

Begin by determining the formula.

What is the operating leverage factor at this level of? sales? Begin by determining the formula.

?(Round the operating leverage factor to three decimal? places.)

Requirement 5. By what percentage will operating income change if? July's sales volume is

1111?%

?higher? Prove your answer. ?(Round the percentage to two decimal? places.)

Prove your answer. ?(Round the percentage to two decimal? places.)

Choose from any list or enter any number in the input fields and then continue to the next question.

Required information

[The following information applies to the questions displayed below.]

Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at Four Corners Airlines, which is based in Santa Fe, New Mexico. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewhat set in its ways and could probably use some “new blood,” as the most recent hire to the firm’s executive team was 12 years ago.

In Lopez’s first meeting with the team, the airline’s chief executive officer commented that “all that mattered in this industry were load factors—the percentage of seats sold on scheduled flights. If load factors were adequate, everything else would take care of itself.” Lopez noted that while this measure was important, other, broader facets of operation were significant as well. She asked if any of the management team had heard of the balanced scorecard, and received dead silence as a response.

Based on her experiences with other engagements, including two that involved airlines, Lopez was convinced that the balanced scorecard could provide benefits in helping to solve the airline’s woes. After a presentation about the philosophy of the balanced scorecard, Four Corners Airlines’ management team accepted her idea, feeling that a shift in operating philosophy was needed for survival.

3. Identify the type of measure used to evaluate the key elements below. (Hint: There are 6 financial measurements, 6 customer-satisfaction measures, 8 internal business process measures, and 5 Learning and growth measures.)

table

Aircraft turnaround time between flights

Average age of aircraft in fleet

Average trip length (in miles)

Average wait time when calling reservations center

Cost per meal served

Earnings per share

Employee satisfaction scores

Employee training programs

Employee turnover

Enhancements to product line (new class of service)

Load factors

Market shareNet income

New unique features of frequent-flier club

Number of aircraft in fleet

Number of bags lostNumber of cities/new cities served

Number of passenger complaints

Operating expenses per seat mile

Passenger revenue per seat mile

Percentage of on-time arrivals

Percentage of on-time departures

Percentage of tickets sold through travel agents, reservation agents, and the Internet

Response time for resolving customer problems

Revenue growth

Required

Prepare a vertical analysis of both the balance sheets and income statements for 2019 and 2018.

Prepare a vertical analysis of the balance sheets for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Prepare a vertical analysis of an income statements for 2019 and 2018. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

The Blandings Home Construction Company purchased a new crane for $350,000 this year. It sold the old crane for $50,000. At the time it had a net book value of $20,000. Assume any profit on the sale of old equipment is taxed at 21%. These were the only transactions that affected investing activities this year. Construct the Cash Flow from Investing Activities section of the statement of cash flows to concisely convey the maximum information to readers of the company's financial statements. Use a minus sign, to indicate any decreases in cash or cash outflows.

1. Darth Vader has taken over the hiring of workers at the construction of the Death Star. When the hourly wage of a worker is 30 Republic Credits (RC 30), he’s willing to hire 100 workers. When the wage increases to 35 Republic Credits, he decides to hire 60 workers.

1. What is the own-wage elasticity of demand for workers? Is it elastic or inelastic?

2. What are two reasons that the elasticity you found might be elastic or inelastic? Reference 2 Hicks-Marshall laws of derived demand.

A construction company in Naples, Florida, is struggling to sell condominiums. In order to attract buyers, the company has made numerous price reductions and better financing offers. Although condominiums were once listed for $350,000, the company believes that it will be able to get an average sale price of $245,000. Let the price of these condominiums in the next quarter be normally distributed with a standard deviation of $16,000.

a. What is the probability that the condominium will sell at a price (i) below $234,000?, (ii) above $271,000? (Round final answers to 4 decimal places.)

b. The company is also trying to sell an artist’s condo. Potential buyers will find the unusual features of this condo either pleasing or objectionable. The manager expects the average sale price of this condo to be the same as others at $245,000, but with a higher standard deviation of $22,000. What is the probability that this condo will sell at a price (i) Below $234,000?, (ii) Above $271,000? (Round your answers to 4 decimal places.)

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2020, the general ledger for Case Inc. contains the following data.

Subsidiary data for Work in Process Inventory on June 1 are as follows.

During June, raw materials purchased on account were $4,700, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred on account.

A summary of materials requisition slips and time tickets for June shows the following.

Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $19,900. Each customer paid in full.

Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)