Question

Required information [The following information applies to the questions displayed below.] Solomon Company makes and sells products with variable costs of $24 each. Solomon incurs annual fixed costs of $413,400. The current sales price is $102. Note: The requirements of this question are interdependent. For example, the $312,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Determine the break-even point in units and in dollars. (Do not round intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) 5,300 Break-even point in units Break-even point in dollars $ 540,600
Please help me. I thought I was doing good but then idk what happened.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Solomon
Answer b 1	Amount $	Note
Sell price	102.00	A
Less: Variable costs	24.00	B
Contribution margin per unit	78.00	C
Total Fixed costs	413,400.00	D
Break even units	5,300.00	E=D/C
Break even $	540,600.00	F=E*A
Answer b 2	Amount $
Sales	540,600.00	See F
Less: Variable costs	127,200.00	G=B*E
Contribution margin	413,400.00	H=F-G
Total Fixed costs	413,400.00	See D
Net Income (Loss)	-	I=H-D
Answer c 1	Amount $
Total Fixed costs	413,400.00	See D
Add: Desired Profit	312,000.00
Desired Contribution margin	725,400.00	J
Contribution margin per unit	78.00	See C
Sales units	9,300.00	K=J/C
Sales $	948,600.00	L=K*A
Answer c 2	Amount $
Sales	948,600.00	See L
Less: Variable costs	223,200.00	M=K*B
Contribution margin	725,400.00
Less: Total Fixed costs	413,400.00
Net Income (Loss)	312,000.00
Answer e 1	Amount $
Revised Fixed costs	310,000.00
Add: Desired Profit	312,000.00
Desired Contribution margin	622,000.00	N
Contribution margin per unit	78.00	See C
Sales units	7,975.00	O=N/C
Sales $	813,450.00	P=O*A
Answer e 2	Amount $
Sales	813,450.00	See P
Less: Variable costs	191,400.00	Q=O*B
Contribution margin	622,050.00
Less: Revised Fixed costs	310,000.00
Net Income (Loss)	312,050.00
Answer g	Amount $
Total units sold	13,000.00	R
Less: Break even units	5,300.00	See E
Margin of safety	7,700.00	S=R-E
Margin of safety $	785,400.00	T=S*A
Margin of safety %	59%	U=S/R