Analysis Summary Section Baylee Byrd Playsets, Inc. Income Statement For the Yea

Question

Analysis Summary Section Baylee Byrd Playsets, Inc. Income Statement For the Year Ended December 31, 2006 Sales $119.998.80 4 Number of Units Sold 5 Revenue Per Unit Variable Expenses $933 39 $30.000 00 $16 552 10 $729 54 Desired Target Income 7 Total Fixed Costs 8 Unit Marketing and Sales Variable Labor Vatiable avethead Variable Selling Variable Administrative $61766 40 $3,099 8O Variable Costs $2.850,00 $87,544.80 $32,454 00 10 11 Marketang and Sales 12 Vaiable Labor 13 Vaiable Overhead 14 Variable Seling 15 Vaiable Administrative 16 Total Variable Espenses 17 $15 24 $150 00 $514 72 $25:83 Total Variable Expenses Contribution Margin Fixed Expenses Fised Duethead Seling Expenses Administrative Expenses $4652 11 $2,500 00 $2.399.39 $7:000 00 23.75 $723 54 Fixed Costs $16,552·10 $15.90190 $5.565.67 $10.336.24 Total Fixed Expenses Operating Income 18 19 Fed Overbead 20 SelinigExpenses 21 Admiriatr stive Expenses $4.652.11 $2.500 00 $2.333 33 $7.000.00 Income Taxes Net Income 23 Ratios 24 61 BEP BEP With Target Income Contribution Margin Ratio Operating Margin Ratio Net Margin Ratio 27.05% 13 25% 8 6 27

Explanation / Answer

Target Income level 15000 20000 25000 30000 35000 40000 Fixed costs 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 Contribution/unit 999.99-729.54 999.99-729.54 999.99-729.54 999.99-729.54 999.99-729.54 999.99-729.54 ie. 270.45 270.45 270.45 270.45 270.45 270.45 Target Income Volume(TIV)= (Fixed Costs+Target Income)/Per Unit contribution TIV (16552.1+15000)/270.45 (16552.1+20000)/270.45 (16552.1+25000)/270.45 (16552.1+30000)/270.45 (16552.1+35000)/270.45 (16552.1+40000)/270.45 116.67 135.15 153.64 172.13 190.62 209.10 117 135 154 172 191 209 Contribution Margin Ratio= Per unit contribution/Per unit sellimg price 270.45/999.99 270.45/999.99 270.45/999.99 270.45/999.99 270.45/999.99 270.45/999.99 27.05 27.05 27.05 27.05 27.05 27.05 2..Per unit selling price 800 850 900 950 1000 1050 1100 1116 1150 1200 Less V.C 729.54 729.54 729.54 729.54 729.54 729.54 729.54 729.54 729.54 729.54 Contribution 70.46 120.46 170.46 220.46 270.46 320.46 370.46 386.46 420.46 470.46 Fixed costs 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 16552.1 BEP(Units) 235 137 97 75 61 52 45 43 39 35 For a target income of $ 30000 BEP(Units) (16552.1+30000)/70.46 (16552.1+30000)/120.46 (16552.1+30000)/170.46 (16552.1+30000)/220.46 (16552.1+30000)/270.46 (16552.1+30000)/320.46 (16552.1+30000)/370.46 (16552.1+30000)/386.46 (16552.1+30000)/420.46 (16552.1+30000)/470.46 661 386 273 211 172 145 126 120 111 99 Not want to sell more than 120 playsets, and wants to have $30,000 target income, As highlighted Selling price per unit must be between $ 1116 -$ 1200 to maintain the target income of $ 30000 & sell a maximum of 120 units

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.