For the Current Year Ending April 30,Philip Company Expects Fixed

question 45

Essay

For the current year ending April 30,Philip Company expects fixed costs of $70,000,a unit variable cost of $45,and a unit selling price of $95.

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Definitions:

Net Profit

The amount of money earned by a company after all expenses and taxes have been subtracted from total revenue.

Leverage Ratio

A financial ratio indicating the degree to which a company or individual is financing its operations through debt, compared to its equity.

LIFO

"Last In, First Out," an inventory management method where the most recently produced or acquired items are the first to be used or sold.

FIFO

An accounting and inventory method where the first items produced or acquired are the first ones to be sold or used, standing for "First-In, First-Out".