Question

131730 252%58P700 P7-61A Find missing data in CVP relationships (Learning Objectives 1 & 2) The budgets of four companies yield the following information Company T Target sales $680,000 $445,000 $224,000 Variable expenses 170,000 270,000 Fixed expenses $159.000 $.93.000 www m Operating income (loss) $150.000 $133.000 18,000 106,800 12,500 Units sold $ 8.96 $6.25 $35.00 Contribution margin per unit 0,60 Contribution margin ratio wwwww 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?

I need the answer to T collum

Answer 1

	Company
	Q	R	S	T
Target Sales	$6,80,000	$4,45,000	$2,24,000	$9,00,000
Variable expenses	$1,70,000	$1,78,000	$1,12,000	$2,70,000
Fixed expenses	$3,60,000	$1,59,000	$93,000	$4,97,000
Operating income/(Loss)	$1,50,000	$1,08,000	$19,000	$1,33,000
Units sold	81,600	1,06,800	12,500	18,000
Contribution margin per unit	$6.25	$2.50	$8.96	$35.00
Contribution margin ratio	0.75	0.60	0.50	0.70
Contribution margin	$5,10,000	267000	$1,12,000.00	$6,30,000.00
Break even point	$4,80,000	$2,65,000	$1,86,000	$7,10,000
(Fixed cost / Contribution margin ratio)
As we can see that Company S has the lowest Break even point as its Contribution margin ratio is the lowest