Question

Perry Corporation produces a molded plastic casing, M&M101, for many cell phones currently on the market. Summary data from its 2017 income statement follows. Gilda Cooke, Perry's president, is very concerned about Perry Corporation's poor profitability. (Click the icon to view the summary data.) (Click the icon to view the additional information.) Read the requirements Requirement 1. Calculate Perry Corporation's breakeven revenues for 2017. Begin by determining the formula to calculate Perry Corporation's 2017 contribution margin percentage. Contribution margin % Perry Corporation's 2017 contribution margin percentage is %. Now determine the formula to calculate Perry Corporation's breakeven revenues for 2017 = Breakeven revenues Perry Corporation's breakeven revenues amount for 2017 is $ Requirement 2. Calculate Perry Corporation's breakeven revenues if variable costs are 60% of revenues. Perry Corporation's breakeven revenues will be $ if variable costs are 60% of revenues. Requirement 3. Calculate Perry Corporation's operating income for 2017 if variable costs had been 60% of revenues. Revenues Variable costs Fixed costs Operating income/(loss) Requirement 4. Given Daryl Holcomb's comments, what should Kirk Hyde do? O A. Following Daryl Holcomb's recommendation would be unethical but, should be done since it might keep the company from having to shut down. O B. Following Daryl Holcomb's recommendation would be ethical since it i the best interest of the company and its employees. O C. Following Daryl Holcomb's recommendation would be unethical. Estimates of environmental costs and liabilities should be included in the analysis. If Daryl still insists on modifying the numbers and reporting lower environmental costs, Kirk should raise the matter with one of Daryl's superiors. OD. Following Daryl Holcomb's recommendation would be ethical. Estimates of environmental costs and liabilities should not be included in the analysis since the company would not be violating any laws.

Answer 1

Breakeven Revenue Fixed cost Contribution matzin Ratio در ایران و Condos Conbibition margin contribution margin sales CY,00 Ratio contribution margin= sales-variable cost = 4200,00 o - 2730,000 $1470,000 contributton margin $1470,000 Ration 4209000 Lisbranog 2. dio) all PRO swallo rivisto prip? Do 10-35 boris of Break even Revenue 3 od 1619,000 in Dollars s 0-35 pelaantjensiar sat no 2121212 rue = $4600,000 rix 270 Lotnigniorivers rewol renodroga bive 2 2 2llest oro chics ottom and 9289 4900,000 - (4 900,000 V604.) sorrosi a $1680,000 ) لا ) contribution margin ( Brentono contribution margin Ratio 1680,000 4200,000 looy 1610,000 Break EvenRevenue (in Pollars) 04 1 4025ooo

Operating Income provon Sivan Particulars Amount (s) sales Revenue 4200,000 less: variablecost. Badia (9520,000) 4 200,000 X 60.) contribution margin 16 80,00 less fixed cost cut sich divine (1610,000) Toperating Income » 70,000 a pe Following Daryl Holo comb's Recommendation would be unethical. Estimate of Environmental costs and liabilities should be included in analysis If Daryl still Insists on the modifying the Numbers and Reporting lower enviromental costs. kirk should Rise the matter with one of pasyl's superspors -robyoooop) 000,00AM Hence ophon 6 is correct Thank COQUEN you