$ 13.31 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.27 1.09 0.28 $3,384.50 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $540 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 380 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate Cove's new break-even point under each of the following independent scenarios: (Round your answers to the nearest whole number.) a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $540 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.50 per cake. Show less 1a. Sales price increases by $1.50 per cake 1b. Fixed costs increase by $540 per month 1c. Variable costs decrease by $0.44 per cake. 1d. Sales price decreases by $0.50 per cake Break-Even Point cakes cakes cakes cakes Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.27 1.09 0.28 $3,384.50 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $540 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 380 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that Cove sold 380 cakes last month. Calculate the company's degree of operating leverage. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of Operating Leverage Cove's Cakes is a local bakery. Price and cost information follows: $ 13.31 Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month 2.27 1.09 0.28 $3,384.50 Required: 1. Calculate Cove's new break-even point under each of the following independent scenarios: a. Sales price increases by $1.50 per cake. b. Fixed costs increase by $540 per month. c. Variable costs decrease by $0.44 per cake. d. Sales price decreases by $0.50 per cake. 2. Assume that Cove sold 380 cakes last month. Calculate the company's degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, calculate the change in profit caused by a 7 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. i.e. 0.1234 should be entered as 12.34%.)) Effect on Profit % E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 500 560 720 Total costs Variable Costs $ 76.500 Fixed Costs 163,000 $ 239,500 $ 0 $ 0 Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ 0.00 $ 0.00 $ 0.00 E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) per Canoe Unit Contribution Margin Contribution Margin Ratio % E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.) SANDY BANK, Inc. Contribution Margin Income Statement For the Current Year Contribution Margin Income from Operations E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate Sandy Bank's break-even point in units and in sales dollars. (Round final answers to the nearest whole number.) Canoes Break-Even Units Break-Even Sales Revenue E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 780 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Suppose Sandy Bank wants to earn $73,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. (Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.) Target Sales Units Canoes E6-20 (Algo) Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales 25% Lens A Lens B Lens C Contribution Margin per unit $37 29 42 40 35 Required: 1. Determine the weighted average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $183,000. 3. Determine how many units of each product must be sold to generate a profit of $73,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the weighted average contribution margin per unit. (Round your intermediate calculations and final answer to 2 decimal places.) Weighted Average CM per unit E6-20 (Algo) Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Lens A Lens B Lens C Percentage of Unit sales 25% 40 35 Contribution Margin per unit $37 29 42 Required: 1. Determine the weighted average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $183,000. 3. Determine how many units of each product must be sold to generate a profit of $73,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the number of units of each product that Tiago must sell to break even if fixed costs are $183,000. (Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number. Round weighted- average contribution margin per unit to 2 decimal places.) Units of A Units of B Units of C Units Units Units E6-20 (Algo) Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales 25% Contribution Margin per unit $37 29 Lens A Lens B Lens C 40 35 42 Required: 1. Determine the weighted average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $183,000. 3. Determine how many units of each product must be sold to generate a profit of $73,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine how many units of each product must be sold to generate a profit of $73,000. (Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number. Round weighted average contribution margin per unit to 2 decimal places.) Units of a Units of B Units of C Units Units Units E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Inc., wants to earn a target profit of $980,000 this year. The company's fixed costs are expected to be $1,360,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $880,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $980,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. 5. When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate break-even sales for Erin Shelton, Inc. Break-Even Sales E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Inc., wants to earn a target profit of $980,000 this year. The company's fixed costs are expected to be $1,360,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $880,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $980,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. 5. When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement on the basis of break-even sales. Contribution Margin Income Statement Contribution Margin Profit E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3) Erin Shelton, Inc., wants to earn a target profit of $980,000 this year. The company's fixed costs are expected to be $1,360,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $880,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $980,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. 5. When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the required sales to meet the target profit of $980,000. Target Sales E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety (LO 6-2, 6-3] Erin Shelton, Inc., wants to earn a target profit of $980,000 this year. The company's fixed costs are expected to be $1,360,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $880,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $980,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. 5. When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. Contribution Margin Income Statement Contribution Margin Profit E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Inc., wants to earn a target profit of $980,000 this year. The company's fixed costs are expected to be $1,360,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Inc., earned $880,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $980,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $980,000. 5. When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 When the company earns $980,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? (Round your "Percentage Sales" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Margin of Safety Margin of Safety as a Percentage of Sales % Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 500 830 960 $121,500 $ $ Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit ? ? ? ? ? ? ? ? ? $ 516.75 ? ? Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $750. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.) 500 Units 830 Units 960 Units $ 121,500 Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 121,500 $ 0 $ 0 $ 0.00 $ 516.75 $ 0.00 Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 500 830 960 $ $ Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $121,500 ? ? ? ? ? ? ? ? ? ? ? ? ? $ 516.75 ? ? ? Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $750. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $750. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) 500 Units 830 Units 960 Units % % Contribution Margin Ratio Total Contribution Margin Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: 500 830 960 $ $ Number of bikes produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $121,500 ? ? ? ? ? ? ? ? ? ? ? ? > ? ? $ 516.75 Required: 1. Complete the table. 2. Calculate Hermosa's contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $750. 4. Calculate Hermosa's break-even point in units and sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Calculate Hermosa's break-even point in units and sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.) Bikes Break-Even Units Break-Even Sales Revenue