Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(7 marks) The following data is related Dubai company's contribution format income statement for last month: Sales $900,000 Variable expenses 300.000 Contribution margin 600,000 Fixed

image text in transcribed
image text in transcribed
(7 marks) The following data is related Dubai company's contribution format income statement for last month: Sales $900,000 Variable expenses 300.000 Contribution margin 600,000 Fixed expenses 200,000 Net operating income $ 400.000 The company has no beginning or ending inventories and produced and sold 30,000 units during the month. Required: a. What is the company's contribution margin ratio? (2 marks) b. What is the company's break-even in units? (2 marks) c. How many units would the company have to sell to attain target profits of $80,000? (3 marks) Answer: (show your operating work): America with Alkhah Bhaa - Cod ACC Amm Name: Student ID : Problem Sharjah Company producing product modelling price $120 and write to per il Team monthly feed expenses 30,000 Romina 1. Solve the company's break-even point in the food (2) 2. Solve the company's hakee point in de wing the commar LLLLLLL Problem (2) marks) Ras Al Khaimah Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 60,000 to 100.000 units is given below Units Produced and Sold 60,000 $0.000 100.000 Total costs: 60.000 80.000 100.000 Variable cost $150,000 Fixed cost $360,000 Total cost $510.000 Costs per unit: Variable cost Fixed cost Total cost per unit ired: 1. Complete the above schedule of the company's total costs and costs per unit. (5 marks) 2. Assume that the company produces and sells 90,000 units during the year at a selling price of 57.50 per (3 marks) unit. Prepare a contribution format income statement for the year. en TE

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

More Books

Students also viewed these Accounting questions