Question

The budgets of four companies yield the following information: E: (Click the icon to view the budget information for the four companies.) 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 pl 650,000 130,000 380,000 Target sales.................. $ Variable expenses........ Fixed expenses..... ........ Operating income (loss) ...........$ Units sold..... 140,000 U T ILS DUI . . . . . . . . . . . . . . . . . . . . 6.40 Contribution margin per unit .... $ Contribution margin ratio .......

Answer 1

Particulars Target Sales Variable expenses Fixed expenses Operating income Units sold | CM per Unit CM Ratio Q 650000 130000 380000 140000 81250 6.40 0.80 R 400000 140000 1560001 104000 125000 2.08 0.65 S T 190000 76000 90000 24000 12000 9.50 0.60| 900000 270000 490000 140000 15750 40 0.70 Operating Income = Sales - variable cost - Fixed cost CM Ratio = Contribution margin / sales Contribution margin = sales - variable cost