Learning Objective 15-4 1) The current ratio is widely used to measure a company's ability to pay current liabilities. 2) The inventory turnover ratio is a measure of the company's ability to pay all of its current liabilities if they come due immediately. 3) The inventory turnover ratio indicates how rapidly inventory is sold. 4) Days' sales in receivables is a measure of a company's ability to collect receivables. 5) Rate of return on net sales is a measure of a company's profitability. 6) The times-interest-earned ratio shows a creditor the firm's ability to pay interest on debt. 7) The […]
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11 ldr manufacturing produces a pesticide chemical and uses process costing there ar 4311344
11) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. At the end of January, the equivalent unit data for the Mixing Department were as follows: EQUIVALENT UNITS Equivalent […]
11 becky 39 s bakery sells three large muffins for every two small ones a small muff 4311332
11) Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. What is the weighted-average contribution margin? A) $1.93 B) $1.75 C) $1.25 D) $1.90 12) Becky's Bakery sells three large muffins for every two small ones. A small muffin sells for $3, with a variable cost of $2.00. A large muffin sells for $5 with a variable cost of $2.50. Fixed costs are $3,000 per month. How much is the breakeven in terms of […]
11 chambers company sells glass vases at a wholesale price of 2 50 per unit variable 4311331
11) Chambers Company sells glass vases at a wholesale price of $2.50 per unit. Variable cost is $1.75 per unit. Chambers' fixed costs are $6,500 per month. If Chambers wishes to make operating income of $2,500, how many units must be sold? A) 11,500 B) 11,750 C) 12,000 D) 12,500 12) Chambers Company sells glass vases at a wholesale price of $2.50 per unit. Variable cost is $1.75 per unit. Chambers' fixed costs are $6,500 per month. Chambers is currently selling 15,000 units per month. If Chambers wants to increase operating income by 20%, how many more units, over and […]
learning objective 20 2 1 special sales orders increase operating income if the reve 4311301
Learning Objective 20-2 1) Special sales orders increase operating income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order. 2) In deciding whether to accept a special sales order, management should consider the quantitative data ONLY and disregard qualitative factors. 3) Fixed costs are relevant to a special sales order decision if those fixed costs are subject to change as a result of the special order. 4) Origami Company is a price-taker and uses target pricing. Please refer to the following information: Production volume 500,000 Units per year Market price $24.00 […]
