Question

References MailingsReview View Help Tell me what you want to do ntain viruses. Unless you need to edit, its safer to stay in Protected View. Enable Editing Problem 7 (35 points) Henry Hawkins Industries income statement for the most recent year is given below. Sales (40,000 units) Less variable expenses Contribution margin Less fixed expenses Net income $800,000 560,000 240,000 192,000 $ 48,000 A. Compute the contribution margin per unit. B. Compute the contribution margin ratio. C. Compute the break-even point in units. D. Compute the break-even point in sales dollars. E. Compute the margin of safety in units.
media%2Ffc6%2Ffc612c64-61eb-4f7b-9f62-3c
media%2F226%2F2266ba84-d33d-4c74-bdb2-46
media%2F7ff%2F7ff09b80-3b77-4c49-8040-df
0 0
Add a comment Improve this question Transcribed image text
Answer #1

A)

Total Contribution margin = 240000

Number of units sold = 40000

Contribution margin per unit = Total Contribution margin/ Number of units sold

= 240000/40000 = 6

B)

Sales per unit = 800000/40000 = 20

Contribution margin ratio = [Contribution margin per unit/Sales] *100

= [6/20] *100 = 30%

C)

Break even points in units = Fixed expenses/ Contribution margin per unit

= 192000/6 = 32000 units

D)

Break even points in sales dollars = Break even points in units*Sale price per unit

= 32000*20 = 640000

Add a comment
Know the answer?
Add Answer to:
References MailingsReview View Help Tell me what you want to do ntain viruses. Unless you need...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • s Mailings Review View Help Tell me what you want to do viruses. Unless you need...

    s Mailings Review View Help Tell me what you want to do viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Worksheet 3-2: Digestion, Absorption, and Transport DAT For each of the nutrients listed below, indicate the mechanism of action for each of the processes identified above. Nutrient Absorption Transport Hormonal Regulation Insulin, glucagon Carbohydrates Digestion/Enzyme Activation Mouth + salivary amylase Stomach no active process Small intestine pancreatic amylase Large intestine-fiber action Primary site...

  • Enable Editing (0) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need...

    Enable Editing (0) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected view K19 DK 1 CD5 - EXCEL Tutorial 3 CURRENT DESIGNS 4 Bill Johnson, sales manager, and Diane Buswell, controller at Current Designs are beginning to analyze the cost 5 considerations for one of the composite models of the kayak division. They have provided the following production 6 and operational costs necessary to produce one composite...

  • et can contain viruses. Unless you need to edit, it's safer to stay in Protected View...

    et can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Case: Cost Structures for Global Shippers Inc. Management from Global Shippers Inc, an interational shipping business, is in the process of assessing the choice between two different cost structures for the business. Option A has relatively higher variable costs per unit shipped but lower annual fixed costs, while Option B has the opposite relatively lower variable costs in its cost structure but...

  • ontain viruses. Unless you need to edit, it's safer to stay in Protected View. ntain viruses....

    ontain viruses. Unless you need to edit, it's safer to stay in Protected View. ntain viruses. Unlessyou need to edit ftstcted View. Enable Editing Editing These problems are from Parallel exercises group B at the end of Ch. 2. A rocket moves through outer space at 12,000 m/s. At this rate, how much time would be required to travel the distance from Earth to the Moon, which is 380,000 km? A rifle is fired straight up, and the bullet leaves...

  • Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View...

    Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing 2) Is this an n-tree? If so, for what integer n? IN Vg Figure HW 7

  • but References Mailings Review View Help Internet can contain viruses. Unless you need to edit, it's safer...

    but References Mailings Review View Help Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing LO 2-1, 2-3, 2-4 Exercise 2-6B Effect of collecting accounts payable on financial statements Kendall Company carned $20,000 of cash revenue, Kendall Coincurred S10.000 of utility expense on account during Year 1. The company made cash payments of $5.000 to reduce its accounts payable during Year 1 Required Based on this information alone, determine the following...

  • hep Tell me Be careful- files from the Internet can contain viruses. Unless you need to...

    hep Tell me Be careful- files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. PROTECTED VIEW Enable Editing X 5 Problem 5 (4 Points) a According to a study conducted for Gateway Computers, 60% ofmen and 70% ofwomen say that weight is an extremely/very important factor in purchasing a laptop computer. Suppose this survey was conducted using 374 men and 481 women. Do these data show enough evidence to declare...

  • Hile D Home Insert Page Layout Formulas Data Review ViewHelpDYMO Label QuickBooks PROTECTED VIEW Be careful--files...

    Hile D Home Insert Page Layout Formulas Data Review ViewHelpDYMO Label QuickBooks PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing C D E F G H 1 E5-9 Compute break-even point 2 The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at 3 $60 a night. Operating costs are as...

  • or Design Layout References Mailings Review View Help Tell me what you want to do files...

    or Design Layout References Mailings Review View Help Tell me what you want to do files from the Internet can contain vituses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Plane Suppose that the block were made to move along the inclined plane upward with uniform velocity by an applied force (F.) parallel to the incline. Derive an equation for the coefficient of kinetic friction for this case in terms of (A free body...

  • Hanlon P3.59.docx (Protected View) - Word Mailings Review View Help Tell me what you want to...

    Hanlon P3.59.docx (Protected View) - Word Mailings Review View Help Tell me what you want to do viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing cash this REY 10.000 month PPOA 8000 Cash 8000 PPDA 8.000 8,000 Cash +8,000 Prepaid Advertising 4. The company purchased advertising for $8,000 cash, the ads will run next month Cash 8.000 1.200 1.200 +1,200 Cash AR Cash 1200 - 1,200 Accounts Receivable 5 The company TOCoved $1.200...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT