A contribution format income statement based upon the 72,000 projected sales units for the year has been prepared showing the contribution format income statement in total dollars for 72,000 units sold, per unit through contribution margin, and as a percentage through contribution margin (creates three columns). From the contribution format income statement, the cost structure percentages and the break-even point in volume of units and sales dollars have been computed. Discuss what the cost structure percentages, break-even point in units and break-even point in sales dollars means for Water Play.

09 H K M 4 Unit Cost Total Cost $ B c D F G 1 Appendix A-1 2 3 Water Play, Inc. Bill of Materials 5 January 1, 20XX 6 7 Quantity Part Number Part Name/Description 8 9 2 54689002 Base Pads 10 4 54689003 Suspension Connectors 11 4 54689004 Frame Connectors 12 1 54689005 Center Chassis 13 1 54689006 Rear Panel 14 1 54689007 Engine Block/Assembly 15 1 54689008 Rear Levelor/Platform 16 54689009 Seat Assembly 17 1 54689010 Propeller Platform/Attachment 18 1 54689011 Propeller 5162012 Staarina Dade Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste 800 480 500 $ 400 120 125 650 350 1,200 150 700 160 260 200 Selling & Gen. Admin. E 650 350 1,200 150 700 160 260 600 10 Display Settings Type here to search E e M N 700 H 700 160 260 300 200 1.250 NN + 160 260 600 400 1,250 $ 7,500 A B D E G 16 1 54689009 Seat Assembly 17 1 54689010 Propeller Platform/Attachment 18 1 54689011 Propeller 19 2 54689012 Steering Rods 20 54689013 Rudders 21 1 54689014 Diving Bell Suit 22 Total 23 * Note: The quantity standards are ideal. 24 25 Diving Bell Suit Subassembly: 26 27 1 Diving Suit Jacket 28 1 Diving Suit Pants 29 1 Diving Bell/Helmet 30 1 Face Mask 31 2 Spear Guns 32 33 34 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 2 Selling & Gen. Admin. E ... Display Settings Select destination and press ENTER or choose Paste Type here to search F A B 1 Appendix A-2 2 3 Water Play, Inc. 4 Labor Routing and Costs January 1, 20XX 6 7 8 Labor Operation/Description Time (in decimal hours Department Code Dept. Labor Rate Standard Cost 9 10 Arrange Base Pads on Platform Anchor 2 101 S 25.00 $ 50.00 11 Assemble Suspension Connectors to Pads 4 101 25.00 100.00 12 Weld Connectors to Pads/Inspect 4 101 25.00 100.00 13 Attach Frame Connectors to Suspension Conn 3 102 28.00 8.4.00 14 Weld Frame Connectors to Suspension Conn 3.5 102 28.00 98.00 15 Assemble Center Chassis to Base Pads 4 102 28.00 112.00 16 Weld Center Chassis to Base Pads 3.5 102 28.00 98.00 3 17 Assemble Rear Panel to Center Chassis 102 28.00 84.00 4 102 28.00 112.00 18 Weld Rear Panel to Center Chassis Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Selling & Gen. Admin E ... Select destination and press ENTER or choose Paste Type here to search EL Clipboard Formatting Format Font Alignment 5 Table Styles Styles Nurnber A5 fx January 1, 20xx c D A B 19 Assemble Engine Block & Rear Levelor to Chassi 10 20 Weld Engine Block & Rear Levelor to Chassis 5 21 Attach Seat Assembly to Rear Levelor & Block 4 22 Weld Seat Assembly to Levelor & Block 3 23 Attach Propeller Platform & Propeller to Seat Fra 4.5 24 Weld Propeller Platform to Seat Frame 2.5 25 Weld Propeller to Propeller Platform 2.5 26 Attach Steering Rods to Engine Block 4.5 27 Attach Rudders to Rear Suspension Connectors 4 28 Weld Rudders to Rear Suspension Connectors 3 29 Assemble Diving Bell Suit 10 Install Suit into Vehicle 6 31 90.0 32 33 * Note: The labor hour (quantity) standards are practical. 34 35 36 37 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste Type here to search O 103 103 104 104 105 105 105 105 105 105 106 106 35.00 35.00 32.00 32.00 30.00 30.00 30.00 30.00 30.00 30.00 42.00 42.00 E 350.00 175.00 128.00 96.00 135.00 75.00 75.00 135.00 120.00 90.00 120.00 252.00 2.889.00 s Selling & Gen. Admin. E ... + 1 Appendix A-3 2 3 H 4 Water Play, Inc. Manufacturing Overhead Budget January 1, 20XX 5 6 5 6 7 8 Account Number Cost Item Annual Cost Cost Code Variable Costs Fixed Costs 9 10 50,000,000 11 20,000,000 25,000,000 60,000,000 1 12 13 14 15 60.000.000 23-600130-2 Indirect Materials/Supplies S 50,000,000 1 23-600131-2 Factory Office Supplies 20,000,000 2 23-600132-2 Overtime: Direct Laborers 25,000,000 1 23-600133-2 Indirect Labor 60,000,000 23-600134-2 Plant Managers' Salaries 60,000,000 2 23-600135-2 Fringe Benefits: Indirect 30,000,000 1 23-600136-2 Fringe Benefits: Direct 150,000,000 1 23-600137-2 Fringe Benefits: Managers 25,000,000 2 23-600139-2 Rework Costs: Mat & Labor 30,000,000 1 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 30,000,000 150,000,000 16 25,000,000 17 18 30,000,000 Selling & Gen. Admin E Display Settings Select destination and press ENTER or choose Paste O Type here to search B D E F G H A 1 Appendix A-4 2 s Water Play, Inc. 4 Selling and General Administrative Expenses 5 January 1, 20XX 6 7 Account Number Cost Item Annual Cost Cost Code Variable Costs Fixed Costs 8 9 Selling Expenses: 10 23-700101-2 Advertising Expense $ 85,000,000 2 S 85,000,000 11 23-700102-2 Sales Managers Salaries 15.000.000 2 15,000,000 12 23-700103-2 Sales Commissions 118,800,000 1 118,800,000 13 23-700104-2 Fringe Benefits 55,000,000 2 55,000,000 14 23-700105-2 Sales Office Supplies 6,000,000 2 6,000,000 15 23-700106-2 Depreciation: Equipment 16 and Furniture 750,000 2 750.000 17 23-700107-2 Depreciation: Building 1.237,500 2 1.237.500 Research & Development 18 23-700108-2 25,000,000 25,000,000 2 19 23-700109-2 Warehousing costs 10,000,000 2 10,000,000 Utilities costs 20 23-700110-2 15,000,000 15.000.000 2 Manufacturing Overhead A-3 Labor Routing A-2 StandardCost Selling & Gen. Admin. Exp A-4 Select destination and press ENTER or choose Paste An Display Settir e Type here to search E B D 19 23-600140-2 Utilities 35,000,000 2 20 23-600140-2 Insurance: Plant & Equip 10,000,000 2 21 23-600142-2 Maintenance/Repairs 20,000,000 2 22 23-600143-2 Training of Direct Laborers 10,000,000 2 23 23-600144-2 Engineering/Tooling 20,000,000 2 24 23-600145-2 Depreciation: Building 6,400,000 2 25 23-600146-2 Depreciation: Equipment 15,000,000 2 26 Total Overhead $ 566,400,000 27 S 345,000,000 $ 28 Cost code 1 identifies variable overhead costs and cost code 2 identifies fixed overhead costs. 29 35,000,000 10,000,000 20. 000 10,000,000 20,000,000 6,400,000 15,000,000 221.400,000 30 31 32 7,866.67 33 Overhead Rate per unit 566,400,000 72,000 34 $ 345,000,000 Manufacturing Overhead A-3 $ 4,791.67 Selling & Gen. Admin E Display Settings 35 36 Variable OH rate per unit Bill of Materials A-1 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search A G 34 72,000 35 Variable OH rate per unit $ $ 4,791.67 36 37 38 345,000,000 72.000 Fixed OH rate per unit $ $ 3.075.00 39 40 221,400,000 72.000 + 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Bill of Materials A-1 Labor Routing A-2 Select destination and press ENTER or choose Paste Manufacturing Overhead A-3 Selling & Gen. Admin E Displ J26 ft NO A B 19 23-700109-2 D Warehousing costs 10.000.000 2 20 23-700110-2 Utilities costs 10.000.000 15,000,000 2 21 23-700111-2 Maintenance & Repairs 15.000.000 3,000,000 2 22 23-700112-2 3.000.000 Shipping Costs 32,400,000 1 32.400,000 23 23-700113-2 Customer Training Costs 21,600,000 1 21,600,000 24 $ 388,787,500 $ 172,800,000 $ 215,987,500 25 26 General Administrative 27 Expenses: 28 23-800201-2 Executive Salaries 60,000,000 $ $ 60,000,000 29 23-800202-2 Executive Fringe Benefits 28,000,000 28,000,000 30 23-800203-2 Accounting & MIS 15,000,000 15.000.000 Office Supplies 6.000.000 2 31 23-800204-2 6.000.000 Leased Computer System 2 5,000,000 32 23-800205-2 5.000.000 33 23-800206-2 Depreciation: Equipment 2 1,750,000 1,750.000 and Furniture 34 412.500 2 412.500 Depreciation: Building 35 23-800207-2 2 7.000.000 7,000,000 Clerical Wages 36 23-800208-2 2.200.000 2 2.200,000 Clerical Fringe Benefits 37 23-800209-2 2.000.000 2 2,000,000 Utilities cost 38 23-800210-2 StandardCost Selling & Gen. Admin. Exp A-4 Manufacturing Overhead A-3 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search Il cl Display Settings G H $ B D E F 37 23-800209-2 Clerical Fringe Benefits 2.200,000 2 2.200.000 38 23-800210-2 Utilities cost 2,000,000 2 2.000.000 39 23-800211-2 Maintenance & Repairs 2,400,000 2 2.400,000 40 23-800212-2 Insurance 6,000,000 2 6.000.000 41 23-800213-2 Property Taxes 12,000,000 2 12.000.000 42 $ 147,762,500 $ s 147,762,500 43 44 Total S&GA $ 536,550,000 $ 172.800,000 $ 363.750,000 45 46 47 Variable S&GA per unit $ 172,800,000 2.400.00 48 72.000 49 $ Fixed S&GA per unit 50 5.052.08 363,750,000 72.000 51 52 7,452.08 536,550,000 53 Total S&GA per unit 72.000 54 55 56 57 StandardCost Selling & Gen. Admin. Exp A-4 Manufacturing Overhead A-3 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search O IT H Number A5 Styles January 1, 20xx 1 Appendix A-5 G H w N 4 Water Play, Inc Standard Cost Card January 1, 20XX 5 6 7 8 Cost Component Cost per Unit Labor Hour Rate per DLH 9 $ 7,500.00 2.889.00 90 $ 32.10 10 Direct Material 11 12 Direct Labor 13 14 Manufacturing Overhead 15 7,866.67 90 87.41 5 16 $ 18,255.67 17 18 Selling & Gen. Admin. Exp A-4 StandardCostCard A-5 IndexShe Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste Displ Tyne here to search Appendix A-7 Water Play, Inc. Contribution Income Statement For Year Ended December 31, 20XX Total 2,160,000,000 $ S 540,000,000 208,008,000 345.000.000 172.800.000 Sales revenue Variable costs: Direct materials Direct labor Variable overhead Variable selling expenses Variable administrative expenses Total variable costs Contribution margin Fixed costs Fixed overhead Fixed selling expenses Fixed administrative expenses Total fixed costs Net operating income Break-even point in units Per Unit Percentage 30,000 100.0% 0.0% 7,500 25.0% 2.889 9.6% 4,792 16.0% 2.400 8.0% 0.0% 17,581 58.6% 12,419 41.4% 1,265.808,000 894,192,000 221,400,000 215,987,500 147,762,500 S 47.116 Break-even point in dollars Total fixed costs CM per unit Total fixed costs CM percentage Budgeted sales revenue 585.150,000 309,042,000 585,150,000 12,419 585,150,000 41.4% 2,160,000,000 1,413,481,668 Margin of safety in dollars Previous Next M 215,987,500 147,762,500 Fixed overhead Fixed selling expenses Fixed administrative expenses Total fixed costs Net operating income Break-even point in units $ 47.116 585,150,000 309,042,000 585,150,000 12,419 585,150,000 41.4% 2,160,000,000 1,413,481,668 1,413,481,668 Break-even point in dollars Total fixed costs CM per unit Total fixed costs CM percentage Budgeted sales revenue -Break-even sales Margin of safety Margin of safety Budgeted sales revenue otal contribution margi Net operating income Margin of safety in dollars 746,518,332 34.6% Margin of safety percentage 746,518,332 2,160,000,000 894,192,000 309,042,000 Operating leverage ratio 2.89 Cost structure: Total variable costs Total fixed costs Total costs 1,265,808,000 585,150,000 1.850,958.000 68.4% 31.6% 100.0% 09 H K M 4 Unit Cost Total Cost $ B c D F G 1 Appendix A-1 2 3 Water Play, Inc. Bill of Materials 5 January 1, 20XX 6 7 Quantity Part Number Part Name/Description 8 9 2 54689002 Base Pads 10 4 54689003 Suspension Connectors 11 4 54689004 Frame Connectors 12 1 54689005 Center Chassis 13 1 54689006 Rear Panel 14 1 54689007 Engine Block/Assembly 15 1 54689008 Rear Levelor/Platform 16 54689009 Seat Assembly 17 1 54689010 Propeller Platform/Attachment 18 1 54689011 Propeller 5162012 Staarina Dade Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste 800 480 500 $ 400 120 125 650 350 1,200 150 700 160 260 200 Selling & Gen. Admin. E 650 350 1,200 150 700 160 260 600 10 Display Settings Type here to search E e M N 700 H 700 160 260 300 200 1.250 NN + 160 260 600 400 1,250 $ 7,500 A B D E G 16 1 54689009 Seat Assembly 17 1 54689010 Propeller Platform/Attachment 18 1 54689011 Propeller 19 2 54689012 Steering Rods 20 54689013 Rudders 21 1 54689014 Diving Bell Suit 22 Total 23 * Note: The quantity standards are ideal. 24 25 Diving Bell Suit Subassembly: 26 27 1 Diving Suit Jacket 28 1 Diving Suit Pants 29 1 Diving Bell/Helmet 30 1 Face Mask 31 2 Spear Guns 32 33 34 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 2 Selling & Gen. Admin. E ... Display Settings Select destination and press ENTER or choose Paste Type here to search F A B 1 Appendix A-2 2 3 Water Play, Inc. 4 Labor Routing and Costs January 1, 20XX 6 7 8 Labor Operation/Description Time (in decimal hours Department Code Dept. Labor Rate Standard Cost 9 10 Arrange Base Pads on Platform Anchor 2 101 S 25.00 $ 50.00 11 Assemble Suspension Connectors to Pads 4 101 25.00 100.00 12 Weld Connectors to Pads/Inspect 4 101 25.00 100.00 13 Attach Frame Connectors to Suspension Conn 3 102 28.00 8.4.00 14 Weld Frame Connectors to Suspension Conn 3.5 102 28.00 98.00 15 Assemble Center Chassis to Base Pads 4 102 28.00 112.00 16 Weld Center Chassis to Base Pads 3.5 102 28.00 98.00 3 17 Assemble Rear Panel to Center Chassis 102 28.00 84.00 4 102 28.00 112.00 18 Weld Rear Panel to Center Chassis Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Selling & Gen. Admin E ... Select destination and press ENTER or choose Paste Type here to search EL Clipboard Formatting Format Font Alignment 5 Table Styles Styles Nurnber A5 fx January 1, 20xx c D A B 19 Assemble Engine Block & Rear Levelor to Chassi 10 20 Weld Engine Block & Rear Levelor to Chassis 5 21 Attach Seat Assembly to Rear Levelor & Block 4 22 Weld Seat Assembly to Levelor & Block 3 23 Attach Propeller Platform & Propeller to Seat Fra 4.5 24 Weld Propeller Platform to Seat Frame 2.5 25 Weld Propeller to Propeller Platform 2.5 26 Attach Steering Rods to Engine Block 4.5 27 Attach Rudders to Rear Suspension Connectors 4 28 Weld Rudders to Rear Suspension Connectors 3 29 Assemble Diving Bell Suit 10 Install Suit into Vehicle 6 31 90.0 32 33 * Note: The labor hour (quantity) standards are practical. 34 35 36 37 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste Type here to search O 103 103 104 104 105 105 105 105 105 105 106 106 35.00 35.00 32.00 32.00 30.00 30.00 30.00 30.00 30.00 30.00 42.00 42.00 E 350.00 175.00 128.00 96.00 135.00 75.00 75.00 135.00 120.00 90.00 120.00 252.00 2.889.00 s Selling & Gen. Admin. E ... + 1 Appendix A-3 2 3 H 4 Water Play, Inc. Manufacturing Overhead Budget January 1, 20XX 5 6 5 6 7 8 Account Number Cost Item Annual Cost Cost Code Variable Costs Fixed Costs 9 10 50,000,000 11 20,000,000 25,000,000 60,000,000 1 12 13 14 15 60.000.000 23-600130-2 Indirect Materials/Supplies S 50,000,000 1 23-600131-2 Factory Office Supplies 20,000,000 2 23-600132-2 Overtime: Direct Laborers 25,000,000 1 23-600133-2 Indirect Labor 60,000,000 23-600134-2 Plant Managers' Salaries 60,000,000 2 23-600135-2 Fringe Benefits: Indirect 30,000,000 1 23-600136-2 Fringe Benefits: Direct 150,000,000 1 23-600137-2 Fringe Benefits: Managers 25,000,000 2 23-600139-2 Rework Costs: Mat & Labor 30,000,000 1 Bill of Materials A-1 Labor Routing A-2 Manufacturing Overhead A-3 30,000,000 150,000,000 16 25,000,000 17 18 30,000,000 Selling & Gen. Admin E Display Settings Select destination and press ENTER or choose Paste O Type here to search B D E F G H A 1 Appendix A-4 2 s Water Play, Inc. 4 Selling and General Administrative Expenses 5 January 1, 20XX 6 7 Account Number Cost Item Annual Cost Cost Code Variable Costs Fixed Costs 8 9 Selling Expenses: 10 23-700101-2 Advertising Expense $ 85,000,000 2 S 85,000,000 11 23-700102-2 Sales Managers Salaries 15.000.000 2 15,000,000 12 23-700103-2 Sales Commissions 118,800,000 1 118,800,000 13 23-700104-2 Fringe Benefits 55,000,000 2 55,000,000 14 23-700105-2 Sales Office Supplies 6,000,000 2 6,000,000 15 23-700106-2 Depreciation: Equipment 16 and Furniture 750,000 2 750.000 17 23-700107-2 Depreciation: Building 1.237,500 2 1.237.500 Research & Development 18 23-700108-2 25,000,000 25,000,000 2 19 23-700109-2 Warehousing costs 10,000,000 2 10,000,000 Utilities costs 20 23-700110-2 15,000,000 15.000.000 2 Manufacturing Overhead A-3 Labor Routing A-2 StandardCost Selling & Gen. Admin. Exp A-4 Select destination and press ENTER or choose Paste An Display Settir e Type here to search E B D 19 23-600140-2 Utilities 35,000,000 2 20 23-600140-2 Insurance: Plant & Equip 10,000,000 2 21 23-600142-2 Maintenance/Repairs 20,000,000 2 22 23-600143-2 Training of Direct Laborers 10,000,000 2 23 23-600144-2 Engineering/Tooling 20,000,000 2 24 23-600145-2 Depreciation: Building 6,400,000 2 25 23-600146-2 Depreciation: Equipment 15,000,000 2 26 Total Overhead $ 566,400,000 27 S 345,000,000 $ 28 Cost code 1 identifies variable overhead costs and cost code 2 identifies fixed overhead costs. 29 35,000,000 10,000,000 20. 000 10,000,000 20,000,000 6,400,000 15,000,000 221.400,000 30 31 32 7,866.67 33 Overhead Rate per unit 566,400,000 72,000 34 $ 345,000,000 Manufacturing Overhead A-3 $ 4,791.67 Selling & Gen. Admin E Display Settings 35 36 Variable OH rate per unit Bill of Materials A-1 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search A G 34 72,000 35 Variable OH rate per unit $ $ 4,791.67 36 37 38 345,000,000 72.000 Fixed OH rate per unit $ $ 3.075.00 39 40 221,400,000 72.000 + 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Bill of Materials A-1 Labor Routing A-2 Select destination and press ENTER or choose Paste Manufacturing Overhead A-3 Selling & Gen. Admin E Displ J26 ft NO A B 19 23-700109-2 D Warehousing costs 10.000.000 2 20 23-700110-2 Utilities costs 10.000.000 15,000,000 2 21 23-700111-2 Maintenance & Repairs 15.000.000 3,000,000 2 22 23-700112-2 3.000.000 Shipping Costs 32,400,000 1 32.400,000 23 23-700113-2 Customer Training Costs 21,600,000 1 21,600,000 24 $ 388,787,500 $ 172,800,000 $ 215,987,500 25 26 General Administrative 27 Expenses: 28 23-800201-2 Executive Salaries 60,000,000 $ $ 60,000,000 29 23-800202-2 Executive Fringe Benefits 28,000,000 28,000,000 30 23-800203-2 Accounting & MIS 15,000,000 15.000.000 Office Supplies 6.000.000 2 31 23-800204-2 6.000.000 Leased Computer System 2 5,000,000 32 23-800205-2 5.000.000 33 23-800206-2 Depreciation: Equipment 2 1,750,000 1,750.000 and Furniture 34 412.500 2 412.500 Depreciation: Building 35 23-800207-2 2 7.000.000 7,000,000 Clerical Wages 36 23-800208-2 2.200.000 2 2.200,000 Clerical Fringe Benefits 37 23-800209-2 2.000.000 2 2,000,000 Utilities cost 38 23-800210-2 StandardCost Selling & Gen. Admin. Exp A-4 Manufacturing Overhead A-3 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search Il cl Display Settings G H $ B D E F 37 23-800209-2 Clerical Fringe Benefits 2.200,000 2 2.200.000 38 23-800210-2 Utilities cost 2,000,000 2 2.000.000 39 23-800211-2 Maintenance & Repairs 2,400,000 2 2.400,000 40 23-800212-2 Insurance 6,000,000 2 6.000.000 41 23-800213-2 Property Taxes 12,000,000 2 12.000.000 42 $ 147,762,500 $ s 147,762,500 43 44 Total S&GA $ 536,550,000 $ 172.800,000 $ 363.750,000 45 46 47 Variable S&GA per unit $ 172,800,000 2.400.00 48 72.000 49 $ Fixed S&GA per unit 50 5.052.08 363,750,000 72.000 51 52 7,452.08 536,550,000 53 Total S&GA per unit 72.000 54 55 56 57 StandardCost Selling & Gen. Admin. Exp A-4 Manufacturing Overhead A-3 Labor Routing A-2 Select destination and press ENTER or choose Paste Type here to search O IT H Number A5 Styles January 1, 20xx 1 Appendix A-5 G H w N 4 Water Play, Inc Standard Cost Card January 1, 20XX 5 6 7 8 Cost Component Cost per Unit Labor Hour Rate per DLH 9 $ 7,500.00 2.889.00 90 $ 32.10 10 Direct Material 11 12 Direct Labor 13 14 Manufacturing Overhead 15 7,866.67 90 87.41 5 16 $ 18,255.67 17 18 Selling & Gen. Admin. Exp A-4 StandardCostCard A-5 IndexShe Manufacturing Overhead A-3 Select destination and press ENTER or choose Paste Displ Tyne here to search Appendix A-7 Water Play, Inc. Contribution Income Statement For Year Ended December 31, 20XX Total 2,160,000,000 $ S 540,000,000 208,008,000 345.000.000 172.800.000 Sales revenue Variable costs: Direct materials Direct labor Variable overhead Variable selling expenses Variable administrative expenses Total variable costs Contribution margin Fixed costs Fixed overhead Fixed selling expenses Fixed administrative expenses Total fixed costs Net operating income Break-even point in units Per Unit Percentage 30,000 100.0% 0.0% 7,500 25.0% 2.889 9.6% 4,792 16.0% 2.400 8.0% 0.0% 17,581 58.6% 12,419 41.4% 1,265.808,000 894,192,000 221,400,000 215,987,500 147,762,500 S 47.116 Break-even point in dollars Total fixed costs CM per unit Total fixed costs CM percentage Budgeted sales revenue 585.150,000 309,042,000 585,150,000 12,419 585,150,000 41.4% 2,160,000,000 1,413,481,668 Margin of safety in dollars Previous Next M 215,987,500 147,762,500 Fixed overhead Fixed selling expenses Fixed administrative expenses Total fixed costs Net operating income Break-even point in units $ 47.116 585,150,000 309,042,000 585,150,000 12,419 585,150,000 41.4% 2,160,000,000 1,413,481,668 1,413,481,668 Break-even point in dollars Total fixed costs CM per unit Total fixed costs CM percentage Budgeted sales revenue -Break-even sales Margin of safety Margin of safety Budgeted sales revenue otal contribution margi Net operating income Margin of safety in dollars 746,518,332 34.6% Margin of safety percentage 746,518,332 2,160,000,000 894,192,000 309,042,000 Operating leverage ratio 2.89 Cost structure: Total variable costs Total fixed costs Total costs 1,265,808,000 585,150,000 1.850,958.000 68.4% 31.6% 100.0%