ZuoTi.Pro
Question

The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows....

The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows.

Carla Vista and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (270,000 units) $1,350,000
Cost of goods sold 900,000
Gross profit 450,000
Operating expenses
Selling $270,000
Administrative 189,000
459,000
Net loss $(9,000 )


A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.Compute the break-even point in total sales dollars for 2020. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.)

Break-even point in dollars $
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Variable cost = 900000*75% + 270000*42% + 189000*40% = 864000

Fixed cost = 900000+459000-864000 = 495000

Contribution margin = (1350000-864000) /1350000 = 36%

Break even point in dollars = fixed cost / contribution margin

= 495000 / 36% = 1375000

Break even point in units = 270000*1375000 /1350000= 275000 units

1 0
Add a comment
Know the answer?
Add Answer to:
The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows....

    The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows. Carla Vista and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Operating expenses Selling $270,000 Administrative 189,000 459,000 Net loss $(9,000 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative...

  • Expand Your Critical Thinking 18-02 The condensed income statement for the Carla Vista and Paul partnership...

    Expand Your Critical Thinking 18-02 The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows. Carla Vista and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Operating expenses Selling $270,000 Administrative 189,000 459,000 Net loss $(9,000 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable,...

  • The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Blossom...

    The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Blossom and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) $1,250,000 Cost of goods sold 900,000 Gross profit 350,000 Operating expenses Selling $250,000 Administrative 112,500 362,500 Wet loss $(12,500) cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. Your...

  • Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole and Paul partnership for...

    Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (240,000 units) $1,200,000 Cost of goods sold 768,000 Gross profit 432,000 Operating expenses Selling $280,000 Administrative 156,000 436,000 Net loss $(4,000) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of...

  • The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales...

    The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Sales (240,000 units) $1,200,000 Cost of goods sold 800,000 Gross profit 400,000 Operating expenses Selling $280,000 Administrative 156,000 436,000 Net loss $(36,000 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. 1) Compute the break-even point in total sales dollars for 2020. 2)...

  • Cullumber and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units)...

    Cullumber and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Operating expenses Selling $315,000 Administrative 175,500 490,500 Net loss $(40,500 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. Cullumber has proposed a plan to get the partnership “out of the red” and...

  • The condensed income statement for the Peri and Paul partnership for 2020 is as follows. Peri Paul Company Income St...

    The condensed income statement for the Peri and Paul partnership for 2020 is as follows. Peri Paul Company Income Statement For the Year Ended December 31, 2020 Sales (240,000 units) $1,200,000   Cost of goods sold       800,000   Gross profit 400,000   Operating expenses Selling $280,000 Administrative   150,000       430,000   Net loss $    (30,000) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. Instructions...

  • Broadening Your Perspective 5-2 (Part Level Submission) The condensed income statement for the Peri and Paul...

    Broadening Your Perspective 5-2 (Part Level Submission) The condensed income statement for the Peri and Paul partnership for 2017 is as follows PERI AND PAUL COMPANY Income Statement For the Year Ended December 31, 2017 Sales (240,000 units) Cost of goods sold Gross profit $1,200,000 900,000 400,000 $280,000 150,000 Selling Administrative 430,000 Net loss $(30,000) A cost behavior analysis indicates that 60% of the cost of goods sold are variable 45% of the selling expenses are variable, and 37% of...

  • Break even point

    Expand Your Critical Thinking 18-02The condensed income statement for the Pharoah and Paul partnership for 2020 is as follows.Pharoah and Paul CompanyIncome StatementFor the Year Ended December 31, 2020Sales (270,000 units)$1,350,000Cost of goods sold900,000Gross profit450,000Operating expensesSelling$315,000Administrative175,500490,500Net loss$(40,500)A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.Your answer is incorrect.  Try again.  Compute the break-even point in total sales dollars for 2020. (Round intermediate...

  • The condensed income statement for the Crane and Paul partnership for 2020 is as follows.

    Sales (240,000 units)$1,200,000Cost of goods sold768,000Gross profit432,000Operating expensesSelling$280,000Administrative156,000436,000Net loss$(4,000)A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.Crane has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT