Homework Answers
Contribution margin ratio = (Sales-Variable cost) /Sales
= (540,000-378,000)/540,000
= 30%
Breakeven sales = Fixed cost/Contribution margin ratio
= 120,000/30%
= 400,000
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valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales...
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Blossom Company estimates that variable costs will be 70.00% of sales, and fixed costs will total $474,000. The selling price of the product is $5. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety (2) Margin of safety ratio
Delta Corporation’s production and sales data provided below:
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6
Reid Company is considering the production of a new product. The expected variable cost is $30 per unit. Annual fixed costs are expected to be $875,000. The anticipated sales price is $80 each. Required Determine the break-even point in units and dollars using each of the following: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. (Do not round intermediate calculations. Round "Contribution margin ratio" to 1 decimal...
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