Variable Cost, Break-Even, Net Income, Inventory Calculations
1. During 2005, the Latrex Corporation had cash and credit sales of $47,000 and $45,500 respectively. The company also collected accounts receivable of $26,700 and incurred expenses of $68,500, 80 percent of which were paid during the year. In addition, Latrex paid $24,000 for a 12-month building rental, beginning on July 1, 2005. What was Latrex's accrual-basis net income (loss) for 2005?
2. If a firm's beginning inventory is $70,000, goods purchased during the period cost $260,000, and the cost of goods sold is $300,000, what is the ending inventory?
3. During the year, Samson Company earned revenues of $228,000 and incurred $196,000 for various operating expenses. There are 2,500 shares of stock outstanding. What is Earnings per share?
4. Goliath Company had the following account balances: Sales Revenue, $150,000; Sales Returns and Allowances, $3,000; Sales Discounts, $3,600; and Bad Debts, $600. Given these balances, what is the amount of net sales?
5. If variable costs are $20 per unit, revenues are $40 per unit, and fixed costs are $10,000, what is the break-even point in units?
6. During June, Bezold Corporation produced 12,000 units and sold them for $20 per unit. Total fixed costs for the period were $154,000, and the operating profit was $26,000.What was the variable cost per unit in June?
7. If demand is 10,000 units, cost of carry is $2 per unit, and cost of placing an order is $100, what is the EOQ?
8. What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of $750 per order, and a carrying cost of $300 per automobile?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/variable-cost-break-even-net-income-inventory-calculations-3d1o