(1) Introduction: The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year. To compute: The cost to revenue ratio of the company for the year 2017.

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Answer 1

Question

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

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APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company’s product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a…

The contribution margin income statementa. reports expenses based on cost behavior pattern rather than cost function.b. unitizes fixed costs.c. shows contribution margin rather than operating income as the bottom line.d. is sometimes used for financial reporting purposes.e. none of the above.Use the following information for Questions 9 and 10.O’Brien, Inc.’s, 2013 contribution margin income statement shows thefollowing:Sales @ $10 per unit . . . . . . . . . . . . . $ 160,000Less: Variable expense . . . . . . . . . . . (128,000)Contribution margin. . . . . . . . . . . . . . $ 32,000Less: Fixed expenses . . . . . . . . . . . . (44,000)Operating income (loss) . . . . . . . . . . . $ (12,000)

Baxter Corporation has been using FIFO during a period ofrising costs. Explain whether you would expect each of the following measurements to be higher or lower if the com-pany had been using LIFO. a. Net income.b. Inventory turnover rate.c. Income taxes expense.

Answer 2

Question

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Expert Solution & Answer

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See solution

Answer 5

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Answer 6

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

Answer 7

Chapter 4, Problem 3AA

To determine

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

Answer 8

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

Answer 9

To determine

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

Answer 10

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Answer 11

To determine

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - Prob. 1MCQ Ch. 4 - Prob. 2MCQ Ch. 4 - All of the following are examples of batch-level...Ch. 4 - Prob. 4MCQ Ch. 4 - Prob. 5MCQ Ch. 4 - Why are overhead costs allocated to products and...Ch. 4 - What are three common methods of assigning...Ch. 4 - Why are direct labor hours and machine hours...Ch. 4 - What are the advantages of using a single plant...Ch. 4 - The usefulness of a single plant wide overhead...

(1) Introduction: The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year. To compute: The cost to revenue ratio of the company for the year 2017.

Solution Summary: The author explains how the cost to revenue ratio can be determined by dividing cost by revenues generated in that year. The cost-to-revenue ratio indicates opportunities for activity-based costing to reduce costs and improve efficiency.

Videos

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Want to see the full answer?

Chapter 4 Solutions

(1) Introduction: The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year. To compute: The cost to revenue ratio of the company for the year 2017.

Solution Summary: The author explains how the cost to revenue ratio can be determined by dividing cost by revenues generated in that year. The cost-to-revenue ratio indicates opportunities for activity-based costing to reduce costs and improve efficiency.

Videos

(1) Introduction: The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year. To compute: The cost to revenue ratio of the company for the year 2017.

(2) Introduction: The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year. To compute: The cost to revenue ratio of the company for the year 2016.

(3) Introduction: The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency. To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

Want to see the full answer?

Chapter 4 Solutions

(1)

Introduction:

The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2017.

(2)

Introduction:

The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.

To compute:

The cost to revenue ratio of the company for the year 2016.

(3)

Introduction:

The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.

To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.