A corporation reports sales of $3,000,000, variable costs of
$1,000,000, fixed operating costs of $750,000, and...
A corporation reports sales of $3,000,000, variable costs of
$1,000,000, fixed operating costs of $750,000, and interest expense
of $250,000. The corporation's EBIT is $2,250,000 and its marginal
tax rate is 30%. If the corporation is able to increase its sales
by 25%, then
a. its EBIT will increase by 25% and its EPS will increase by
25%.
b. its EBIT will increase by more than 25% and its EPS will
increase by less than 25%.
c. its EBIT and...
Information for Garland Construction for last
year:
Sales
$2,000,000
Variable costs
$1,200,000
Traceable fixed costs
$200,000...
Information for Garland Construction for last
year:
Sales
$2,000,000
Variable costs
$1,200,000
Traceable fixed costs
$200,000
Average invested capital (assets)
$3,000,000
Current liabilities
$200,000
Required rate of return
15%
Marginal tax rate
36%
Weighted average cost of capital
12%
Solve
1. residual income.
2. return on investment.
3. Calculate the economic value added
In 2019, Alafaya had sales of $950,000 and paid taxes of
$84,000. Because of the low...
In 2019, Alafaya had sales of $950,000 and paid taxes of
$84,000. Because of the low interest rate environment, the firm
also borrowed some money from the local bank and paid $40,000 in
interest expense. In addition, the firm incurred Variable Costs and
Fixed Costs of $270,000 and $400,000 respectively. If operating
income increases by 7%, what should be the increase in earnings per
share?
7.0%
8.17%
19.83%
17.0%
2.83%
Sunland Corp. had total variable costs of $193,800, total fixed
costs of $133,300, and total revenues...
Sunland Corp. had total variable costs of $193,800, total fixed
costs of $133,300, and total revenues of $340,000.
Compute the required sales in dollars to break even.
Required sales
$
Amanda Company reports the following total costs at two levels
of production.
Classify each cost as variable, fixed, or mixed.
5,000 Units
10,000 Units
Indirect labor
$ 3,000
$ 6,000
Fixed CostsMixed CostsVariable Costs
Property taxes
7,000
7,000
Fixed CostsMixed CostsVariable Costs
Direct labor
28,000
56,000
Fixed CostsMixed CostsVariable Costs...
(Related to Checkpoint 4.3) (Profitability analysis) Last
year the P. M. Postem Corporation had sales...
(Related to Checkpoint 4.3) (Profitability analysis) Last
year the P. M. Postem Corporation had sales of $443,000, with a
cost of goods sold of $114,000. The firm's operating expenses were
$126,000, and its increase in retained earnings was $97,630. There
are currently 22,000 shares of common stock outstanding, the firm
pays a $1.56 dividend per share, and the firm has no
interest-bearing debt
.a. Assuming the firm's earnings are taxed at 35 percent,
construct the firm's income statement.
b. ...
Last year, a company had total sales of 2,200 units at $500 each
with Net Income...
Last year, a company had total sales of 2,200 units at $500 each
with Net Income amounted to $45,000. The total fixed costs were
$450,000 and variable costs were $275 per unit. The selling price
will remain the same for this year. Yet, the company is planning to
invest in new facilities that would increase fixed costs by 25%,
while decreasing variable costs per unit by 20%. The company’s
breakeven point in units for this year is …..
Select one:...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages,...
The Alexander Company reported the following income statement
for 2016:
Sales $15,000,000
Less: Operating expenses
Wages, salaries, benefits $6,000,000
Raw materials 3,000,000
Depreciation 1,500,000
General, selling, and administrative expenses 1,500,000
Total operating expenses 12,000,000
Earnings before interest and taxes (EBIT) $3,000,000
Less: Interest expense 750,000
Earnings before taxes $2,250,000
Less: Income taxes 1,000,000
Earnings after taxes $1,250,000
Less: Preferred dividends 250,000
Earnings available to common stockholders $1,000,000
Earnings per share—250,000 shares outstanding $4.00
Assume that all depreciation and 75 percent...
Eastland Corp. had total variable costs of $150,000, total fixed
costs of $120,000, and total revenues...
Eastland Corp. had total variable costs of $150,000, total fixed
costs of $120,000, and total revenues of $250,000.
(a1)
Your answer is correct.
Calculate contribution margin ratio.
Contribution margin ratio
%
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(a2)
Compute the required sales in dollars to break even.
Required sales
$
ACME, Inc. reported the following income statement for 2009:
Sales
$2,500,000
Variable Costs
900,000
Fixed Operating...
ACME, Inc. reported the following income statement for 2009:
Sales
$2,500,000
Variable Costs
900,000
Fixed Operating Costs
700,000
EBIT
900,000
Interest Expense
200,000
EBT
700,000
Taxes (30%)
210,000
Net Income
$490,000
Earnings Per Share
$4.90
If ACME's sales next year increase by 20%, what will ACME's
earnings per share be?
show work so i can understand how you got each answer
For the fiscal year ended December 31, 2019, a company reported
Net Income of $7,000,000. The...
For the fiscal year ended December 31, 2019, a company reported
Net Income of $7,000,000. The Dillie company had 3,000,000 shares
of $1 par value common stock outstanding all year. In addition, the
company had $500,000 par value of 10% cumulative, non-convertible
preferred stock outstanding all year. In December 2019, the company
declared and paid a preferred dividend of $50,000, as well as a
$0.10 per share dividend to common shareholders. Furthermore, on
January 1, 2019 the company issued at...