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Divide the resulting figure by the expected life (also known as estimated useful life): 180,000 divided by 10 equals 18,000 depreciation per year for 10 years. Required

Divide the resulting figure by the expected life (also known as estimated useful life): 180,000 divided by 10 equals 18,000 depreciation per year for 10 years.
Required

1. In addition to the contribution margin figures already computed, now compute the PV ratio (also known as the CM ratio).
2. Add another column to your worksheet and compute the clinic’s per-visit revenue and costs.
3. Create a Cost-Volume-Profit chart. Refer to the chapter text along with Figure 7–6.
CHAPTER 8
Assignment Exercise 8–1: FIFO and LIFO Inventory
Study the FIFO and LIFO explanations in the chapter.

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Required
a1. Use the format in Exhibit 8–1 to compute the ending FIFO inventory and the cost of goods sold, assuming $90,000 in sales; beginning inventory 500 units @ $50; purchases of 400 units @ $50; 100 units @ $65; 400 units @ $80.
a2. Also compute the cost of goods sold percentage of sales.
b1. Use the format in E


 

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