Data Table The budgets of four companies yield the following information: (Click

Question

Data Table The budgets of four companies yield the following information: (Click the icon to view the budget information for the four companies.) Read the requirements Requirement1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest Company Nantz Smith Eastman Whitman $(d) S 720,000 44,000504,000 171,000 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per UnitS Contribution Margin Ratio $ 2,030,000 $ 0) Nantz Smith Whitman (a) 358,400 Eastman $720,000 504,000 171,000 (b) 208,000 $ (e) 8,000 S 2,030,000 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low Begin by showing the formula and then entering the amounts to calculate the breakeven point in saes dollars for each company. (Complete all answer boxes. Round the breakeven point the required sales in 228,600 140,000 2.90 4,000 358,400 $ (9) S81,400 208,000 s( S 72.00 S 80% 16.00 S 228,600 $81,400 20% 140,000 8,000 2.90 $ 72.00$ 16.00 80% | |% 20 % PrintDone dollars -up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CMcontribution margin.) Required sales in dollars Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

Nantz Smith Eastman Whitman Net Sales Revenue 2030000 220000 720000 448000 Variable Cost 1624000 44000 504000 358400 Contribution Margin 406000 176000 216000 89600 Fixed Cost 177400 208000 171000 8200 Operating Income(Loss) 228600 -32000 45000 81400 Units Sold 140000 8000 3000 5600 Contribution Margin Per Unit 2.90 22.00 72.00 16.00 Contribution Margin Ratio 20.00% 80% 30.00% 20% Answer to Nantz Answer to Smith Answer to Eastman A Contribution Margin 140000*2.90 D Contribution Margin Ratio 80% G Operating Income=CM-Fixed Cost Contribution Margin 406000 Variable Cost 44000 216000-171000 Net Sales Revenue 2030000 Variable Cost=1-CM Ratio=20% 45000 Net Sales Revenue-CM 1624000 Net Sales Revenue 220000 B Operating Income=CM-Fixed Cost E Operating Income=CM-Fixed Cost H Unit Sold=CM/CM PU Fixed Cost=CM-Operating Income 176000-208000 Unit Sold=216000/72 Fixed Cost 406000-228600 -32000 3000 Fixed Cost 177400 F Contribution Margin Per Unit CM/Units I Contribution Margin Ratio CM/Sale C Contribution Margin Ratio CM/Sale Rev Contribution Margin Per Unit 176000/8000 Contribution Margin Ratio 216000/720000 20.00% Contribution Margin Per Unit 22.00 Contribution Margin Ratio 30.00% Answer to Whitman J Contribution Margin Ratio 20% Variable Cost 358400 Variable Cost=1-CM Ratio=80% Net Sales Revenue 448000 K Operating Income=CM-Fixed Cost Fixed Cost=CM-Operating Income Fixed Cost 89600-81400 Fixed Cost 8200 L Unit Sold=CM/CM PU Unit Sold=89600/16 5600 (Fixed Cost/CM Ratio) Break Even in $ Nantz 177400/20% 887000 Smith 208000/80% 260000 Eastman 171000/30% 570000 Whitman 8200/20% 41000 Whitman has the Lowest BEP, primarily due to Low Fixed Cost

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