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? > C ?v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMando?invoker=assignments&takeAssignmentSessionLocator;= assignment take&inprogress;=false CHAPTER 16 eBock Calkusto Break-Evan Units and Sales Ravanua: Margin of Safsty 1. CEX16.01 ALGO 2. CEX 16 02 ALGO 3. ??? 16 03 ALGO 4. CEX 16.04 ALGO Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimares it will copy 2.930,000 pages at a price of so.1 each in the coming year. Product costs include Direct materials Direct labor ariable overhead Total fixed overheasd $0.015 0.005 $0.002 $166.020 5. CEX 16 05 ALGO 6. CEX 16.06 7. EX.16.08 . EX.16.09 9. EK.16.12 ALGO 10. EX 16.15 There is no variable seling axpense; fixed seling and administrative expenses cocal $36,000. Requiredi In your computations that invalve the contribution margin ratio, do not round the ratio. 1. Caloulste the break-even point in units 2. Celoulete the break-even point in seles revenue 3. Celoulete the mergin of safety in units for the coming year 4. Celoulete the mergin of safety in sales revenue for the coming year 5. Whet if the totsl selling and administretive expenses are reduced to $12.600? Recalculete the following a. Break-even poit in uni b. Break-even point in sales revenue c. Wargin of safety in units for the coming yeer d Margin of safety in ses revenue for the coming year units Check My Work 2 more Check My Work uses remaining. PreviousNext Propress: 6/10 items sgnment Soore: 604456 Seve and Exit Submit Assignment for Grading 646 PM O Type here to search 4/18/2018Explanation / Answer
Solution:
1) Break Even Point in Units
Total Fixed Cost (166,020 + 36,000)
$202,020
Contribution Margin Per Unit (Refer Note 1)
$0.078
Break Even Point in Units (Fixed Cost / Unit CM)
2590000
Units
Note 1 --
Unit Selling Price
$0.100
Less: Unit Variable Costs
Direct materials
$0.015
Direct Labor
$0.005
Variable Overhead
$0.002
Total Variable Cost per unit
$0.022
Contribution Margin Per Unit
(Selling Price - Total VC)
$0.078
CM Ratio
(CM Per Unit / Unit Selling Price x 100)
78.00%
2) Break Even Point in Sales Revenue
Total Fixed Cost (166,020 + 36,000)
$202,020
CM Ratio (Refer note 1)
78%
Break Even Point in Sales Revenue
(Fixed Cost / CM Ratio)
$259,000
3) Margin of Safety in units
Total Sales Units
2930000
Break Even Point in Units
2590000
Margin of Safety
(Sales - Break Even Units)
340000
Units
4) Margin of Safety in sales revenue
Total Sales Revenue (2,930,000*$0.1)
$293,000
Break Even Point in Sales Revenue
$259,000
Margin of Safety
(Sales Revenue - Break Even Sales)
$34,000
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Pls ask separate question for remaining parts.
1) Break Even Point in Units
Total Fixed Cost (166,020 + 36,000)
$202,020
Contribution Margin Per Unit (Refer Note 1)
$0.078
Break Even Point in Units (Fixed Cost / Unit CM)
2590000
Units
Note 1 --
Unit Selling Price
$0.100
Less: Unit Variable Costs
Direct materials
$0.015
Direct Labor
$0.005
Variable Overhead
$0.002
Total Variable Cost per unit
$0.022
Contribution Margin Per Unit
(Selling Price - Total VC)
$0.078
CM Ratio
(CM Per Unit / Unit Selling Price x 100)
78.00%
2) Break Even Point in Sales Revenue
Total Fixed Cost (166,020 + 36,000)
$202,020
CM Ratio (Refer note 1)
78%
Break Even Point in Sales Revenue
(Fixed Cost / CM Ratio)
$259,000
3) Margin of Safety in units
Total Sales Units
2930000
Break Even Point in Units
2590000
Margin of Safety
(Sales - Break Even Units)
340000
Units
4) Margin of Safety in sales revenue
Total Sales Revenue (2,930,000*$0.1)
$293,000
Break Even Point in Sales Revenue
$259,000
Margin of Safety
(Sales Revenue - Break Even Sales)
$34,000
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