Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio?

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

1. a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? If the contribution margin ratio is 30% for Swannanoa Company, sales are $900,000, and fixed costs are $200,000, what is the operating profit? b. 2. For the current year ending April 30, Hal Company expects fixed costs of $60,000, a unit variable cost of $70, and a unit selling price of $105. a a. b. Compute the anticipated break-even sales (units). Compute the sales (units) required to realize an operating profit of $8,000. I a 3. For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70 per unit is expected to remain the same. a. Compute the break-even sales (units) for the current year. b. Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed. 4. For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine (a) the break- even point in units of sales, (b) the unit sales required to realize operating income of $150,000, and (c) the probable operating income if sales total $500,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Government And Not For Profit Accounting Concepts And Practices

Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese

9th Edition

1119803896, 978-1119803898

More Books

Students also viewed these Accounting questions

Question

Illustrate the compensation structure.

Answered: 1 week ago

Question

Describe the steps in an effective performance management system.

Answered: 1 week ago

Question

Define a performance management system.

Answered: 1 week ago