Homework Answers
a.
| Equation Method |
| At BEP = Revenue = Fixed Cost + Variable Cost |
| Let X be the units produced |
| 200 X = 720000 + 80 X |
| X = 9000 Units |
| BEP in Units = 9000 Units |
| Break Even in dollar Sales = 1800000 Dollars |
| (Selling Price * Break even units) |
b.
| Contributin Margin Per Unit Approach | ||
| Contributin Margin Per Unit | 80 | |
| Break Even in Unit Sales | ||
| (Fixed Cost / Contribution Margin Per Unit) | 9000 | Units |
| (Selling Price * Break even units) | ||
| Break Even in dollar Sales | 1800000 | Dollars |
| (Selling Price * Break even units) |
c.
| Contributin Margin Ratio Approach | ||
| Contribution Margin Ratio | 40% | |
| Break Even in dollar Sales | ||
| (Fixed Cost / Contribution Margin Ratio) | 1800000 | Dollars |
| Break Even in Unit Sales | ||
| (Dollar Sales / Selling Price Per Unit) | 9000 | Units |
d.
| Ritchie Manufacturing Company | |
| Contribution Margin Income Statement | |
| Sales | 1800000 |
| Less: Variable Cost | 1080000 |
| Contribution Margin | 720000 |
| Less: Fixed Costs | 720000 |
| Operating Income | 0 |
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Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1...
Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1...
Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie Manufacturing Company makes a product that it sells for $130 per unit. The company incurs variable manufacturing costs of $66 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $450,000, and fixed selling and administrative costs are $226,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the...
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Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs variable manufacturing costs of $61 per unit. Variable selling expenses are $16 per unit, annual fixed manufacturing costs are $380,000, and fixed selling and administrative costs are $281,500 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
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Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $101 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $464,000, and fixed selling and administrative costs are $256,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method....
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Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs variable manufacturing costs of $73 per unit. Variable selling expenses are $11 per unit, annual fixed manufacturing costs are $468,000, and fixed selling and administrative costs are $271,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company Incurs variable manufacturing costs of $78 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $350,000, and fixed selling and administrative costs are $149,800 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
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Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $70 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $496,000, and fixed selling and administrative costs are $274,400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
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Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $64 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $494,000, and fixed selling andd administrative costs are $237,400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
ercises Chapter One Saved 1 Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $100 per unit. Variable seling expenses are $17 per unit, annual fixed manufacturing costs are $460,000, and fixed selling and administrative costs are $195.200 per year Required Determine the break-even point in units and dollars using each of the...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs variable manufacturing costs of $73 per unit. Variable selling expenses are $11 per unit, annual fixed manufacturing costs are $468,000, and fixed selling and administrative costs are $271,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company Incurs variable manufacturing costs of $78 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $350,000, and fixed selling and administrative costs are $149,800 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
Help Problem 11-28 Determining the break-even point and preparing a contribution margin income stat LO 11-5 Ritchie Manufacturing Company makes a product that it sells for $170 per unit. The company incurs variable manufacturing cost $83 per unit Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $498,000, and fixed selling and administrative costs are $236,400 per year Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation...
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