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Virty [35]
2 years ago
15

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm

has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given below:
Required:
1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.)
1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.)
1-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points?
Greater than
Less than
Equal to
2. By how much would the company’s net operating income increase if Minneapolis increased its sales by $48,750 per year? Assume no change in cost behavior patterns.
3. Refer to the original data. Assume that sales in Chicago increase by $32,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.
a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e.1234 should be entered as 12.3)
Business
1 answer:
loris [4]2 years ago
5 0

Answer:

Explanation:

1a

Break-even point in dollar sales 406957 =(109200+78000)/46%

1b

Break even point

Chicago office 72429 =50700/70%

Minneapolis office 146250 =58500/40%

1c

Greater than

2

Increase in sales 48750

X CM ratio 40%

Net operating income increase 19500

3

Total company Chicago Minneapolis

Amount % Amount % Amount %

Sales 520000 100.0% 130000 100.0% 390000 100.0%

Variable expenses 273000 52.5% 39000 30.0% 234000 60.0%

Contribution margin 247000 47.5% 91000 70.0% 156000 40.0%

Traceable fixed expenses 109200 21.0% 50700 39.0% 58500 15.0%

Office segment margin 137800 26.5% 40300 31.0% 97500 25.0%

Common fixed expenses not traceable 78000 15.0%

Net operating income 59800

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Kate is leasing some equipment from Ajax Leasing for a period of one year. Ajax pays the maintenance, taxes, and insurance costs
Vanyuwa [196]

Answer:

operating lease

Explanation:

In this scenario, it seems that Kate has an operating lease on the equipment. This type of lease is a contract that allows the customer to use the leased asset but does not transfer over ownership rights of that asset to the customer. The lease period varies on the company and its contract terms, but the customer is able to fully use the product during the time specified in the lease terms.

7 0
2 years ago
Audreys free-throw percentage so far this season is .875. If she makes only 13 of her next 20 free throws, her percentage will d
otez555 [7]

Answer:

245 free throws

Explanation:

x will be number of times Audreys makes a shot, and let y be total number of the shots.

x/y = .875

(x+13)/(y+20) = .860

Let solve for x in equation 1

x = .875y

We will plug the for x in the equation 2

(.875y+13)/(y+20)

= .860

.875y + 13

= .860y + 17.2

.015y = 4.2

y = 280

Audreys has taken 280 shots.

We will Plug that back into the equation 1 in order to find out how many Audreys made.

x/280 = .875

x = 245

Hence :

Audreys made 245 free throws

6 0
2 years ago
Daryl would like to open new checking and savings accounts. One of his primary concerns is avoiding bank fees. Which type of ban
nikdorinn [45]
I found the same question but it had choices. The choices were:
a) retail bank
b) commercial bank
c) savings and loans
d) credit union

The type of banking institution that is most suitable for Daryl is CREDIT UNION.

Credit Union is defined as a member-owned financial cooperative. They offer banking services but these are offered to their members. They grant loans and interest paid on those loans are also given to member-owners as dividends. 

Daryl will not only earn interest from his checking and savings accounts, he will also earn dividends. Any bank fees issued by the cooperative will be returned to them in the form of dividends.
5 0
2 years ago
Read 2 more answers
Instructions:Review the following graph. Then, answer the question below.
netineya [11]

the purple bar is the tallest which means it has the most growth potential:

answer is: B. There will be a growing demand for nurse practitioners in the coming years.

6 0
2 years ago
Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0
2 years ago
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