Sales | 1,250,000.00 | |
Variable cost : | ||
Cost of Goods Sold | 675,000.00 | |
Selling expenses | 105,000.00 | |
Administrative expenses | 45,000.00 | |
Total Variable cost | 825,000.00 | |
Contribution Margin | 425,000.00 | |
Fixed Cost : | ||
Cost of Goods Sold | 225,000.00 | |
Selling expenses | 145,000.00 | |
Administrative expenses | 67,500.00 | |
Total Fixed cost | 437,500.00 | |
Net profit | - 12,500.00 |
Contribution Margin ratio = 425,000/1,250,000 = 34%
Break even point in total sales Dollars = 437,500/34% = 1,286,765
b.
Sales | 1,640,625.00 | |
Variable cost : | ||
Cost of Goods Sold | 921,875.00 | |
Selling expenses | 131,250.00 | |
Administrative expenses | 56,250.00 | |
Total Variable cost | 1,109,375.00 | |
Contribution Margin | 531,250.00 | |
Fixed Cost : | ||
Cost of Goods Sold | 225,000.00 | |
Selling expenses | 145,000.00 | |
Administrative expenses | 67,500.00 | |
Total Fixed cost | 437,500.00 | |
Net profit | 93,750.00 |
Contribution Margin ratio = 531,250/1,640,625 = 32.3810%
Break Even Point = 437,500/32.3810 % = 1,351,101
c.
Sales | 1,900,000.00 | |
Variable cost : | ||
Cost of Goods Sold | 1,080,000.00 | |
Selling expenses | 236,000.00 | |
Administrative expenses | 72,000.00 | |
Total Variable cost | 1,388,000.00 | |
Contribution Margin | 512,000.00 | |
Fixed Cost : | ||
Cost of Goods Sold | 225,000.00 | |
Selling expenses | 290,000.00 | |
Administrative expenses | 67,500.00 | |
Total Fixed cost | 582,500.00 | |
Net profit | - 70,500.00 |
Contribution Margin = 512,000/1,900,000 = 26.9474%
Break even point in dollars = 582,500/26.9474% = 2,161,619
DIJUMI Turny Income Statement For the Year Ended December 31, 2020 Sales (250,000 units) $1,250,000 Cost...
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 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 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 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...
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)...
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 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,...
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...
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...
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...