For each of the following independent situations, compute the required calculations. a. Basic Company has fixed costs
Question:
For each of the following independent situations, compute the required calculations.
a. Basic Company has fixed costs of $50,000 and breakeven sales of $250,000. What is the projected income at $400,000 sales?
b. Pride Company has sales of $500,000 and a margin of safety of $200,000. The contribution margin is 15%. What are fixed costs?
c. Fixed costs are $12,800. The sales price is $16 per unit and the variable cost percentage is 60%. What are sales dollars at breakeven, and how many units are required to break even?
d. Fixed costs are $6,600. The variable cost per unit is $7. At breakeven, there were 300 units sold. How much will the next unit sold, unit #301, contribute to operating income and what is the sales price per unit?
e. If the variable cost per unit of $15 represents a 30% variable cost percentage, what is the contribution margin per unit and the sales price per unit?
Step by Step Answer:
Managerial Accounting
ISBN: 9780137689453
1st Edition
Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope