Question

What are the calculation needed to find the answer? Thank you!

Fall-2019 14. Camia Co. contribution margin is $200, after-tax income is $96, and the tax rate is 40%. What are the fixed costs? a. $60 b. $50 c. $40 d. None of the above 15. Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above 16. Layne Inc. has a contribution margin ratio of 40% and a breakeven point of $100,000 in sales. If the firm reports net income of $140,000 after taxes of 60%, what were total sales for the year? a. $975,000 b. $156,000 c. $450,000 d. None of the above Use the following information for the next 3 questions. Ferraro Motor Works uses a process costing system. Direct materials are added at the beginning of the process. During January, Department Q had a beginning inventory of 2000 units, 25% complete for conversion costs. During the month 14,000 units were started and there were 1000 units in ending inventory, 60% complete for conversion costs. 17. Using FIFO process costing, the equivalent units for direct materials for the month were a. 13,600 b. 14,000 C. 16,000 d. None of the above 18. Using weighted average process costing, the equivalent units for direct materials for the month were a. 13,600 b. 14,000 c. 16,000 d. None of the above

Answer 1

As per HOMEWORKLIB POLICY we are required to solve the first 4 parts only. For remaining parts you have to post separate question.

Answer 2 Part 14) 3 Fixed Cost = Contribution Margin - (after tax income /(1-tax rate)) = 200 - (96/(1-40%)) 5 = 200 - 160 5 = $ 40 3 Thus the correct answer is c) $40 o Part 15) 1 Sales = (Fixed cost + Net income before tax)/ contribution margin ratio 2 = ((200000*40%)+100000)/40% 3 = (80000+100000)/40% 4 = $ 450000 6 Thus the correct answer is a) $450000

Part 16) Sales = (Fixed cost + Net income before tax)/ contribution margin ratio = ((100000*40%) +(140000/(1-60%)}}/40% = ( 40000+350000)/40% = $ 975000 Thus the correct answer is a) $975000 Part 17) The correct answer is b) 14000 Units Explanation Since material are added at the beginning of the process, sso it means the units already in the beginning inventory already has 100 % material and units started during the period are the only units for material cost has been incurred so the correct answer is 14000 units As per HomeworkLib policy we are required to solve the first 4 parts only. For remaining parts you have to post separate question. Thank You