eNOWv2 | Online teaching and take Chapter 4 Homework Break-Even Sales Under Pres
ID: 2462681 • Letter: E
Question
eNOWv2 | Online teaching and take Chapter 4 Homework Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 103,400 units at a price of $69 per un Battonkill Company, operating a full capacity, sold 103,400 units at a price of $69 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses: $7,134,600 2,530,000 $4,604,600 Selling expenses $1,265,000o Administrative expenses 759,000 Total expenses 2,024,000 Income from operations $2,580,600 The division of costs between fixed and varlable is as follows:Explanation / Answer
Answer: the unit variable costs =2378,200 / 103400 Units = $23 per unit
(b) the unit contribution margin.=69 sales price - 23 variable cost = $46 contribution margin
Answer:4 BEP(units)=Fixed cost/Contribution margin
=(2175800+73600)/46
=48900 units
Answer:5 (2175800+73600+2580600)/46
=105000 units
Answer:6 (7134600 + 552,000) sales - 2249400 fixed costs - (184,000 + 2378200) = $2875000
Answer:7 7134600 sales - 2249400 fixed costs -2378200 variable costs = $2507,000 net income
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