Category: Uncategorized

Aspire Appliances desires to earn a target net income of $500,000 for next year. If it has fixed costs of $2,000,000 and variable costs are 60% of sales, what are the required sales?

Fancy Footwear is a premier designer and manufacturer of designer shoes for women. Over the past two years, they have concerted a lot of effort into both their boots and heels divisions. The results of their efforts are shown here:Management is interested in analyzing this data. What is the percent change in gross profit for both the Boots and Heels divisions from Year 1 to year 2? (Use parentheses around a number to indicate a negative value or loss.)

Wilson Racquet Manufacturers produces three different types of tennis racquets: Control Racquet, Tweener Racquet, and a Power Racquet. Financial information for the three racquet product lines is shown below: Control Tweener Power Total Sales$450,000$250,000$65,000 $765,000 Variable expenses 325,000 140,000 58,000 523,000 Contribution margin125,000 110,0007,000 242,000 Fixed expenses 75,000 35,000 22,000 132,000 Oper. income (loss)$ 50,000$ 75,000$(15,000) $110,000If the fixed expenses for the Power Racquet line are not avoidable since they are allocated fixed costs, what will be total operating income be if the Power Racquet line is dropped?

Sarah works for a mid-size law firm as a staff accountant. Sarah wants to develop her skills into something more valuable to her organization and more marketable in general. She knows data analytics is an incredibly popular new area for high-demand skills. What are some ways that Sarah can add some data analytics perspective to support her goals?

Counters and Black, CPAs, LLP had service revenues last month of $70,000. Their variable labor costs consisted of 100 hours of partner-level labor at $150 per hour and 400 hours of staff labor at $50 per hour. Other variable costs were $2,000 for the month, and fixed costs are $336,000 on an annual basis. The firm anticipates a 10% increase in service revenues next month and expects that its cost structure will remain consistent with last month’s levels. Based on this information, which of the following statements is correct?

Trevor is about to enter his third year of a pre-med program and knows the program will continue to become more competitive. He needs to ensure that his GPA will be on par with that of his classmates. He has earned the following GPAs in his courses to date: 4, 3, 3, 2, 2, 4, 4, 4, 4, 3, 3, 3, 3, 4, 2, 2, 3, 4, 4, and 3. The average GPA for pre-med students is 3.75. Using Excel, determine how close Trevor’s GPA is to that average. (Round intermediate calculations to two decimal places.)

Which of the following items would not appear on a CVP graph?

Which of the following statements regarding fixed costs and degree of operating leverage (DOL) is correct?

Benson Company is a retailer that specializes in the e-commerce sale of small office supplies including decorative file folders, personalized desk calendars, and trendy desk accessories. As part of their annual review, management decided to perform some analysis on trends over the past five years. One manager suggested they use data visualization for this purpose. If management would like to analyze how well the company achieved their sales targets over the past five years, then what type of chart would be the best to use to do this?

Saturn Industries has three product lines. Management is concerned about the Jupiter product line, which experienced an operating loss of $(40,000) last year as result of sales of $240,000, variable expenses of $150,000, and fixed expenses of $130,000. If this product line is eliminated, 60% of the fixed expenses can be eliminated, but the remaining 40% will have to be allocated to other product lines. If management decides to eliminate this product line, the company’s net income will