The budgets of four companies yield the following information EEB Click the icon

Question

The budgets of four companies yield the following information EEB Click the icon to view the budget information for the four companies.) Read the requirements Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus s Baker Carey Doren Everest $ 1,425,000 $ 792,000 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold 210,000 396,000 290,400 150,000 270,000 214,000 64,800 150,000 15,000 Contribution Margin per Unit3.80S 72.00 S 11.00 Contribution Margin Ratio Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. (C 60 % 20 % contribution margin.) Required sales in dollars Baker Carey Doren Everest Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? 0 Vhas the lowest breakeven point, primarily due to

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Baker Carey Doren   Everest Net Sales revenue Carey = 210,000/(100%-60%) Everest = 290400/(100%-20%)            1,425,000.00               525,000.00                     792,000.00              363,000.00 Variable costs Baker = (9.50-3.80) *150,000               855,000.00               210,000.00                     396,000.00              290,400.00 Fixed costs Baker = 1425,000 - 855,000 - 214,000 Everest = 363000 - 290400 - 64800               356,000.00               150,000.00                     270,000.00                   7,800.00 operating income (loss) Doren = 792000 - 396000 - 270000               214,000.00               165,000.00                     126,000.00                 64,800.00 Units sold Doren = (792000 - 396000)/72 Everest = (363000-290400)/11               150,000.00                  15,000.00                         5,500.00                   6,600.00 Contribution margin per unit Carye = 525000*60%/15000                            3.80                          21.00                               72.00                         11.00 Contribution margin ratio Baker = 3.80/9.50 Doren = 72/144 40.00% 60.00% 50.00% 20.00% Selling price per unit = Sales/ No of units                            9.50                          35.00                             144.00                         55.00 Variable cost per unit= Variable costs/No of units                            5.70                          14.00                               72.00                         44.00 FC +   Zero profit CM Ratio =   Required Sales Baker               356,000.00                                 -   40.00%              890,000.00 Carey               150,000.00                                 -   60.00%              250,000.00 Doren                 270,000.00                                 -   50.00%              540,000.00 Everest                    7,800.00                                 -   20.00%                 39,000.00 Everest has lowest BEP due to lower fixed costs

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