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) Ploeger Corporation has provided the following contribution format income S 24

ID: 2567676 • Letter: #

Question

) Ploeger Corporation has provided the following contribution format income S 240,000 Sales (4,000 units) Variable expenses Fixed expenses Net operating income The break-even point in dollar sales is closest to: A) SO B) $156,000 C) $234,000 D) $237,900 14%, its net operating income should increase by about A) 10.8% B) 151.296 C) 14.0% D) 77.1% 6) Sunnripe Corporation manufactures and sells two types of beach towels, standard and 6) Standard Deluxe S 450,000 50,000 s 360,000 20,000 Total variable expenses Sunnripe expects to have a total of $57,600 in fixed expenses next year. What is Sunnripe's overall break-even point next year in sales dollars? C) $240,000 A) S192,000 B) $144,000 D) $72,000

Explanation / Answer

Answer =1 Sales $                 2,40,000.00 Less: Variable Cost $                 1,56,000.00 Contribution                               84,000 Less: Fixed Cost                               81,900 Net operating income                                 2,100 Contribution margin = Contribtion / Sales 35.0% Break Even Point = Fixed Cost / Contribution margin Ratio Break Even Point = $ 81,900 / 0.35 Break Even Point = $ 234,000 Answer = Option C = $ 234,000 Answer =2 If the sales is increased by 14% then its net income also will increase by 14% Answer = Option c = 14% Answer =3) Standard Deluxe Total Sales                           4,50,000                        50,000 $             5,00,000 Less: Varaible Cost                           3,60,000                        20,000 $             3,80,000 Contribution margin $             1,20,000 Contribution margin % 24.00% Break Even Point = Fixed Cost / Contribution margin Ratio Break Even Point = $ 57,600 / 0.24 Break Even Point = $ 240,000 Answer =Option c = $ 240,000