Question
2) Information for 2019 is supplied below for five companies Company ABC Corp DEF Corp GHI Corp JKL Corp MNO Corp Sales 550,000 540,000 880,000
2) Information for 2019 is supplied below for five companies
|
|
|
| Company |
|
|
|
| ABC Corp | DEF Corp | GHI Corp | JKL Corp | MNO Corp |
| Sales | 550,000 | 540,000 | 880,000 |
| 1,248,750 |
| Variable Expenses | 375,000 |
|
| 247,500 |
|
| Fixed Expenses |
| 120,000 | 90,000 |
|
|
| Operating Income | 30,000 |
|
| 65,250 | (30,000) |
| Units sold | 10,000 | 45,000 | 110,000 | 5,500 | 67,500 |
| Conitrbuiton margin per unit | 17.50 | 4.00 |
| 75.50 |
|
| Contribution margin ratio |
|
| 16% |
| 11% |
- Fill in the blanks
- Find the break-even point, in sales dollars for each company. Which company has the lowest break-even point in sales dollars? Why?
- Find the break-even point in units. Which company has the lowest break-even point in units? Why?
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Financial Accounting
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin
7th Canadian Edition
0135433061, 9780135433065
