The budgets of four companies yield the following? information: Requirements 1.
ID: 2621151 • Letter: T
Question
The budgets of four companies yield the following? information:
Requirements
1.
Fill in the blanks for each company.
2.
Compute? breakeven, in sales? dollars, for each company. Which company has the lowest breakeven point in sales? dollars? What causes the low breakeven? point?
Requirement 1. Fill in the blanks for each company. ?(Round the contribution margin per unit and ratio calculations to two decimal? places.)
Q
Target sales. . . . . . . . . . . . . . . . . .
$757,500
Variable expenses. . . . . . . . . . . . .
242,400
Fixed expenses. . . . . . . . . . . . . . .
Operating income (loss). . . . . . . .
$175,100
Units sold. . . . . . . . . . . . . . . . . . . .
85,000
Contribution margin per unit. . . .
$6.06
Contribution margin ratio. . . . . . .
0.68
1.
Fill in the blanks for each company.
2.
Compute? breakeven, in sales? dollars, for each company. Which company has the lowest breakeven point in sales? dollars? What causes the low breakeven? point?
Company int in Target sales. Variable expenses Fixed expenses. Operating income (loss) Units sold Contribution margin per unit 6.06 Contribution margin ratio $ 757,500 S 418,750 $146,250 242,400 198,000 158,000 82,000 $ 175,100 S $ 133,000 13,000 16,500 9.00 S 38.00 134,000 0.64 Print DoneExplanation / Answer
Q
R
S
T
sales
757500
418750
418750
146250
(16500*38)+198000
825000
variable cost
242400
418750-(134000*.64)
332990
145250-82000-35000
28250
198000
fixed expenses
757500-242400-175100
340000
158000
158000
82000
825000-198000-133000
494000
operating income
175100
-72240
(13000*9)-82000
35000
133000
units sold
(757500-242400)/6.06
85000
134000
134000
13000
16500
contribution margin per unit
6.06
.64*(418750/134000)
2
9
38
contribution margin ratio
(757500-242400)/757500
0.68
0.64
0.64
9/(146250/13000)
0.8
38/(825000/16500)
0.76
Break even sales = fixed cost/sales
500000
246875
102500
650000
Company C has lowest level of break even sales level
Low amount of fixed income contributes to low degree of break even point
Q
R
S
T
sales
757500
418750
418750
146250
(16500*38)+198000
825000
variable cost
242400
418750-(134000*.64)
332990
145250-82000-35000
28250
198000
fixed expenses
757500-242400-175100
340000
158000
158000
82000
825000-198000-133000
494000
operating income
175100
-72240
(13000*9)-82000
35000
133000
units sold
(757500-242400)/6.06
85000
134000
134000
13000
16500
contribution margin per unit
6.06
.64*(418750/134000)
2
9
38
contribution margin ratio
(757500-242400)/757500
0.68
0.64
0.64
9/(146250/13000)
0.8
38/(825000/16500)
0.76
Break even sales = fixed cost/sales
500000
246875
102500
650000
Company C has lowest level of break even sales level
Low amount of fixed income contributes to low degree of break even point
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