At the Virtual Cafe, the average price per meal sold is $20 with an average variable cost at 45% of the price. Fixed cos...
At the Virtual Cafe, the average price per meal sold is $20 with an average variable cost at 45% of the price. Fixed costs for July are expected to be $65,000. If the restaurant manager expects to sell 5,000 meals in July, the taxable income (EBT) of the month would be:
$5,000
$10,000
-$5,000 (loss)
-$10,000 (loss)
The University Golf Shop desires to make $10,000 on its taxable income (EBT). If the contribution margin is 50% of the revenues, and the fixed costs are $110,000; what is the required amount of revenues?
$20,000
$200,000
$220,000
$240,000
Homework Answers
| Q1) | Calculation Of taxable Income | ||||||||
| Sales | 100000 | ||||||||
| (5000 Meals *$20 per meal) | |||||||||
| Less: | |||||||||
| Variable Cost | 45000 | ||||||||
| ($100000*45%) | |||||||||
| Fixed Cost | 65000 | ||||||||
| Taxable Income | -10000 | ||||||||
| (loss) | |||||||||
| Therefore fourth option is correct. | |||||||||
| Q2) | Required Revenue = Desired Profit+ Fixed Cost/ Contribution Margin | ||||||||
| =($10000+110000)/50% | |||||||||
| =$240000 | |||||||||
| Therefore fourth option is correct. | |||||||||
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The 2019 Balance Sheet of the
Victoria Co. is as
follows:
Victoria
Co.
Balance
Sheet
As of
December 31, 2019
Cash
85,000
Notes Payable
150,000
Notes Receivable
34,590
Accounts Payable
125,000
Accounts Receivable
35,000
Unearned Revenue
1,000
Less: Allowance for Doubtful A/Cs
(2,930)
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0
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65,000
Interest Payable
3,500
Office
Supplies
0
Income Tax Payable...
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comment the next step is the trial balance. Can you please help me
with this. journal Entries are attached. If there are any mistakes
in the General Journal please let me know.
Victoria Co. Balance Sheet As of December 31, 2019 Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful A/Cs Inventories Office Supplies Prepaid Insurance Prepaid Rent Total Current Assets Long-term Investments Investments in securities Land for future development...
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The 2019 Balance Sheet of the
Victoria Co. is as
follows:
Victoria
Co.
Balance
Sheet
As of
December 31, 2019
Cash
85,000
Notes Payable
150,000
Notes Receivable
34,590
Accounts Payable
125,000
Accounts Receivable
35,000
Unearned Revenue
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Less: Allowance for Doubtful A/Cs
(2,930)
Property Tax Payable
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Inventories
65,000
Interest Payable
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Office
Supplies
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Income Tax Payable...
I just completed the Journal Entries and according to the
comment the next step is the trial balance. Can you please help me
with this. journal Entries are attached. If there are any mistakes
in the General Journal please let me know.
Victoria Co. Balance Sheet As of December 31, 2019 Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful A/Cs Inventories Office Supplies Prepaid Insurance Prepaid Rent Total Current Assets Long-term Investments Investments in securities Land for future development...
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