Question

45. Determine the "total costs & profits in excess of billings" or the total on & profits in excess of billings" or the total billings in excess of costs & profits," as the case may be, with the following information: Current Contract Amount: $17,954 Total Estimated Cost at Completion: $14,567 Actual Costs to Date: $4,562 Total Billed: $6,000 A. C. Costs & profits in excess of billings =$5,623 Billings in excess of costs & profits = $377 Costs & profits in excess of billings = $1,061 Billings in excess of costs & profits = $3,387 D. 46. What is the break-even volume of work for a company with a fixed overhead of $63,000, a contribution margin ratio of 11.0%, and a required level of profit of $60,000? A. $63,000 $123,070 $835,410 $1,118,182

Answer 1

Answer 1 Option B Billing in excess of cost and profit $ 377.28 Particulars Actual cost to date Total estimated cost to completion Estimated Total cost Degree of completion (%) (a/b) Revenue recognized (31% of 17,954) Total foreseeable loss ($19,129 - $17954) Less : Loss for current year (e-a) Expected loss to be recognized Amount $ 4,562.00 $ 14,567.00 $ 19,129.00 31% $ 5,622.72 $ 1,175.00 1,060.72 $ 114.28 Total billed Cost and Profit (revenue recognized) Total Billing in excess of Cost and profit (a-b) b C $ $ $ 6,000.00 5,622.72

Answer 2 Option : D $ 11,18,181.82 Total fixed cost + Desired profit Break even volume of sale PV contribution margin ratio b c Fixed overhead Profit As per question Contribution margin ratio Break even volume of sale (a+b/c) $ 63,000.00 $ 60,000.00 11% $ 11,18,181.82