The following incomplete (columns have missing amounts) pension spreadsheet is f
ID: 2352090 • Letter: T
Question
The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporation (FRC). Answer the 3 questions on the next page after completing this spreadsheet.AOCI Income
Stmt Asset Asset or
Liab
Note: ()s indicate credits;
debits otherwise PBO Plan
Assets Prior
Service
Cost Net
Loss Pension
Expense Cash Net Pension-
(Liab)/
Asset
Balance, Beginning of Year (700) 28 90
Service cost 62
Interest cost
49
Expected return on assets 68
Adjust for: Gain on assets (2)
Amortization of:
Prior service cost-AOCI (7)
Net loss-AOCI 3
Loss on PBO (8)
Prior service cost (new)
Contributions to fund (45)
Retiree benefits paid (65)
Balance, End of year 730 (81)
Explanation / Answer
follow thisTarget Sales Volume (in dollars) = Fixed Costs + Target Operating Income 10. Contribution Margin Ratio = $145,000 + $30,000 .35 = $500,000 per month 11. At the break-even point, a company earns a total contribution margin exactly equal to its fixed costs. By dividing the unit contribution margin into this required total contribution margin, we can determine the number of units that must be sold to enable the company to cover its fixed costs. 12. If the contribution margin ratio is 35%, variable costs must account for the other 65% of total revenue. If 65% of total revenue is equal to $26 per unit, the unit sales price must be $26
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