1) Exercise 7-23 Fill in Blanks; Basic CVP Relationships (LO 7-1, 7-2) Fill In the missing data for each of the following Independent cases. (Ignore income taxes.) (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required.) Variable Total Contribution Fixed Net Income Break-Even Sales Sales Revenue Expenses Margin Expenses Revenue 1 S 465,000 $ 40,000 S 30,000 40,000 2 80 000 15,000 80,000 3 40,000 80,000 50,000 110,000 22,000 38,000Exercise 7-24 Pizza Delivery Business; Basic CVP Analysis (LO 7-1, 7-2, 7-4) College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company's annual fixed expenses are $40,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.) Required: 1. Using the contribution-margin approach, compute the company's break-even point in units (pizzas). 2. What is the contribution-margin ratio? (Round your answer to 1 decimal place.) 3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. 4. How many pizzas must the company sell to earn a target profit of $65,000? Use the equation method. 1 . Break-even point pizzas 2. Contribution-margin ratio 0.5 3. Break-even point sales dollars 4. Number of pizzasExercise 7-25 Ma nufacturing; Using CVP Analysis (LO 7-1, 7-4) Rosario Company. which is located in Buenos Aires. Argentina. manufactures a component used in farm machinery. costs are 4,000,000 ,0 per year. The variable cost of each component is 2.000 p, and the components are sold for 3 company sold 5.000 components during the prior year. {p denotes the peso. Argentina's national currency. Several peso as their monetary unit. 0n the day this exercise was written, Argentina's peso was worth 0.104 US. dollar. In th requirements. ignore Income taxes.) Required: 1. Compute the break-even point in units. 2. What will the new break-even point be if xed costs increase by 10 percent? 3. What was the company's net income for the prior year? 4. The sales manager believes that a reduction in the sales price to 2,500 pwill result in orders for 1.200 more com What will the breakeven point be ifthe price ls changed? 5. Should the price change discussed in requirement 4 be made? WWW I ;i_ II New area-em pom i a Shouid the price change discussed in requirement 4 be made? Exercise 8-20 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4) Manta Ray Company manufactures diving masks with a variable cost of $25. The masks sell for $34. Budgeted fixed manufacturing overhead for the most recent year was $792,000. Actual production was equal to planned production. Required: State whether operating income is higher under variable or absorption costing and the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case. (Do not round intermediate calculations.) 1. Production 110,000 units Sales 108,000 units 2. Production 90,000 units Sales 95, 000 units 3. Production 79, 200 units Sales 79, 200 units Income Higher Under Amount of (Method) Difference 1Exercise 8-25 Variable Costing and Cost-Volume-Prot Analysis [LO 8-5] Blanca Bicycle Company manufactures mountain bikes with a variable cost of $200. The bicycles sell for $350 each. Budgeted xed manufacturing overhead for the most recent year was $2.200.000. Planned and actual production for the year were the same. Required: 2. Calculate Bianca Bicycle Company's breakeven point in units. {Round your answer no the nearest whole number.)