Current operating income for Bay Area Cycles Co. is $26,000. Selling price per unit is $100,...
Current operating income for Bay Area Cycles Co. is $26,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $104,000. Required: Calculate Bay Area Cycle’s per unit variable expense and contribution margin. How many units are currently being sold? How many additional unit sales would be necessary to achieve operating income of $65,000?
Homework Answers
a) Variable cost per unit = 100*75% = 75 per unit
Sales = (104000+26000)/.25 = $520000
Contribution margin = 520000*.25 = $130000
Current unit sold = 520000/100 = 5200 Units
b) Required unit sales = (104000+65000)/25 = 6760 Units
Additional unit sale to achieve operating income of $65000 = 6760-5200 = 1560 Units
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Current operating income for Bay Area Cycles Co. is $26,000.
Selling price per unit is $100,...
Current operating income for Bay Area Cycles Co. is $26,000. Selling price per unit is $100,...
Current operating income for Bay Area Cycles Co. is $26,000. Selling price per unit is $100, the contribution margin ratio is 25% and fixed expense is $104,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio 0 %
please complete the entire question, try and use the same format if possible Current operating income...
please complete the entire question, try and use the same format if
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Current operating income for Bay Area Cycles Co. is $26,000. Selling price per unit is $100, the contribution margin ratio is 25% and fixed expense is $104,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio 0 %
please complete the entire question, try and use the same format if
possible
Current operating income for Bay Area Cycles Co. is $44,000. Selling price per unit is $100, the contribution margin ratio is 20%, an fixed expense is $176,000. Required: 1. Calculate Bay Area Cycle's breakeven point in units and total sales dollars. Break-even units Break-even dollars 2. Calculate Bay Area Cycle's margin of safety and margin of safety ratio. Margin of safety Margin of safety ratio-
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