Apportionment of cost | ||||
Variable | Fixed | |||
Cost of goods sold | 480000 | 320000 | ||
Seling expense | 126000 | 154000 | ||
Admin Expense | 55500 | 94500 | ||
Total | 661500 | 568500 | ||
Sales | 1200000 | |||
Total Variable Cost | 661500 | |||
Contribution | 538500 | |||
Number of units | 240000 | |||
Contribution per unit | 2.24375 | |||
CM ratio: Contribution/ Sales *100 | ||||
538500/1200000*100 = 44.875% | ||||
Break even in $: Fixed cost / CM ratio | ||||
$ 568500 /44.875% = $1266,852 | ||||
Break even in Units: Fixed cost / CM per unit | ||||
$ 568500 /2.24375 = 253,371 units |
Broadening Your Perspective 5-2 (Part Level Submission) The condensed income statement for the Peri and Paul...
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...
can anyone help me to solve this? CT5.2 The condensed income statement for Peri and Paul ple for 2020 is as follows. Peri and Paul ple 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,...
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