Question
1. Consider the income statement for Pickbury Farm: Sales $500,000 Variable Costs 350,000 Contribution margin 150,000 Fixed costs 80,000 Net Income 70,000 Q: At what
1. Consider the income statement for Pickbury Farm:
Sales | $500,000 |
Variable Costs | 350,000 |
Contribution margin | 150,000 |
Fixed costs | 80,000 |
Net Income | 70,000 |
Q: At what sales level does Pickbury achieve net income of $100,000?
2. The Blue Saints Bank is holding a concert in Toronto. Fixed costs relating to staging a concert are $350,000. Variable costs per patron are $5. The selling price for a ticket is $25. The Blue Saints Bank has sold 23,000 tickets so far. How many tickets does the Blue Saints Bank need to sell to achieve net income of $50,000 after income tax, assuming the income tax rate is 20%
3. Franklin Company manufactures bikes. During the year a new line is developed. The break even point for this line of bikes is $300,0000 of sales with a contribution margin of 30%. Assuming that the profit for the line during the year amounted to $150,000, total sales during the year must have been:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started