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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?
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
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