Question

Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The...

Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000 The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is:

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro...
Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales                                                             $1,500,000 Cost of Sales:    Direct Material                $250,000    Direct labor                       150,000    Variable Overhead                75,000     Fixed Overhead                 100,000             575,000 Gross Profit                                                    925,000 Selling and General & Admin. Exp.      Variable                            200,000       Fixed                               250,000               450,000 Operating Income 475,000 For the coming year, the management of Gardner Corporation anticipates a 10 percent...
Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009.  It sells...
Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009.  It sells a single product for $20 a unit.  Sales are 25% cash and 75% credit.  The credit sales are collected 30% in the month of the sale and the remaining 70% is collected in the next month.  No credit sales occurred in December 2008. The December 31 inventory of finished goods is 15,000 units and projected sales are 20,000, 55000, 65,000, 75,000, and 85,000 units for the first  months...
Yun Company is in the process of preparing its budget for the next fiscal year. The...
Yun Company is in the process of preparing its budget for the next fiscal year. The company has had problems controlling costs in prior years and had decided to adopt a flexible budgeting system this year. Many of its costs contain both fixed and variable cost components. A method that can be used to separate costs into fixed and variable components is A. Linear programming. B. Simulation. C. Time series or trend analysis. D. Regression analysis. Given actual amounts of...
The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year....
The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is factory depreciation. If the budgeted cash disbursements for manufacturing overhead for December total $105,000, then the budgeted direct labor-hours for December must be: Multiple Choice 6,000 direct labor-hours 21,000 direct labor-hours 9,000 direct labor-hours 3,000 direct labor-hours The usual starting point...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Krepps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Direct materials $ 180,000 Direct labor $ 120,000 Variable manufacturing overhead $ 210,000 Fixed manufacturing overhead $ 250,000 Sales totaled $850,000 for the year, variable selling and administrative expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There...
The Frosty Corporation manufactures and sells snow rakes. The rakes sell for $20 each. Information about...
The Frosty Corporation manufactures and sells snow rakes. The rakes sell for $20 each. Information about the company’s costs is as follows: Variable manufacturing cost per unit- $6 Variable selling and administrative cost per unit- $2 Fixed manufacturing overhead per month- $300,000 Fixed selling and administrative cost per month- $600,000 1.Determine the company’s monthly breakeven point in units 2. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000. 3. Compute the company’s margin of safety...
EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and...
EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production. Direct materials per bag 1.70 yard cotton at $4.70 per yard 0.90 yards canvas finish at $12.70 per yard Direct labor per bag 1.20 hour at $18.70 per hour Overhead per bag Indirect labor $ 1.30 Indirect materials 0.90 Power 1.10 Equipment costs 2.00 Building occupancy 1.60 Total overhead per...
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $37,800....
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $37,800. Cash receipts are expected to be $648,000 and cash payments for purchases are expected to be $612,000. Other cash expenses expected are $27,700 selling and $34,200 general and administrative. The company desires a minimum cash balance at the end of each month of $37,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note. The amount Webster must borrow...
Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic...
Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $57,500, the accumulated depreciation is $23,000, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $119,600. The automatic machine has an estimated useful life...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 113,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 114,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 124,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT