Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20. Nimoy, Inc. needs a forecast (budget) income statement for July 2020. The company sells one product at a single price per unit. Instructions: a)

image text in transcribed
20. Nimoy, Inc. needs a forecast (budget) income statement for July 2020. The company sells one product at a single price per unit. Instructions: a) Prepare a forecast Income Statement using the following format. Make up your own numbers. Total Sales Revenue (???? units) $???? -Variable Costs $???? =Contribution Margin $???? -Fixed Costs $???? =Net Income $2222 b) Calculate your Contribution Margin (CM) Ratio (round to 0.00 or 00.0%). c) Calculate your break-even point in Sales Units (round to the nearest unit). d) Calculate the required Sales Units to achieve a Target Profit of $????. Make up your own Target Profit different than your Net Income in part a)(round to the nearest unit). e) Calculate the Margin of Safety percentage (ratio) at your forecast Sales Revenue (round to nearest 00.0%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

External Audit Auditing Business Functions And Assets

Authors: Bart Rohman

1st Edition

B0B5NR6TB6, 979-8839201767

More Books

Students also viewed these Accounting questions

Question

Find F(s) if f (t) = te-at u(t-4)

Answered: 1 week ago

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago