Question

Test: Quiz CVP Chapter 20 s 0) 182,000 2175000 (a) 147,000 456,000 (b) 138,000270,000 Fxed Costs 182,000 S(g) $ 68,300 s (e) 10 500 h) Units Sold Conthibution Magin per Unit 150 000 66 300 290 12.00 2 90 7600 1200

Answer 1

Rreq 1:
			Sunny	Rainy	Cloudy	Windy
Net sales revenue			2175000	367500	912000	260000
variable cost			1740000	147000	456000	182000
Fixed cost			180200	138000	270000	11700
Operating income			254800	82500	186000	66300
Units sold			150000	10500	6000	6500
CM per unint			2.9	21	76	12
CM ratio			20%	60%	50%	30%
Req 2:
		Fixed cost    /		CM ratio =	Required sales in $
Sunny		180200		20%	901000
rainy		138000		60%	230000
Cloudy		270000		50%	540000
Windy		11700		30%	39000
The factors for low break even:
Low Fixed cost
High CM ratio.