Accounting Problem 21-6A, both images are the full problem
Car and the maximum income from opet part), determine been realised durinr the year. Verify you were in the who to cost-volume-profit analysis. 3. Construct a cost-volume- chart indicating the break-evene for year, assuming that a noncancellable contract is signed for the advertising. No changes are expected in the unit selling price or other your answer, using the break-even equation 4. Using the cost volume-profit chart prepared in part (3), determine the that could be realized during the year. Verify your answers using the wat operations if sales total 2.000 units and (b) the maximum come from me approach to cost-volume-profit analysis. PR 21-5A Data related to the expected sales of laptops and tablets for Tech Products in the Sales mix and break-even sales current year, which is typical of recent years, are as follows: Unit Variable Cost Products Unit Selling Price Laptops Tablets Probl. units Sales M AN $1,600 $800 850 350 The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, Envece reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. 3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different? Hadise be PR 21-6A Contribution margin, break-even sales, cost-volume-profit chart, 0B). 2,3,4,5 su margin of safety, and operating leverage 3 the beginning of the year. The total of all production costs for the year is therefore as sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year to sang A summary report of these estimates is as follows: Estimated Variable Cost DOD 082 loss babe Estimated sin Fixed Cost (per unit sold) $ 46 40,000 Production costs: Direct materials. TO Direct labor o Factory overhead. $200,000 Selling expenses: ogno Sales salaries and commissions..... Cena 110,000 Advertising. Travel 12,000 Miscellaneous selling expense .......... no 7,600 Administrative expenses: Office and officers' salaries. 132,000 tot Supplies.. 10,000 Miscellaneous administrative expense 13,400 $525,000 Total.. ELI -Il. 88 - Chapter 21 Cost-Volume-Profit Analysis 1065 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Instructions 1. Prepare an estimated income statement for 2018. 2. What is the expected contribution margin ratio? DES 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales 6. Determine the operating leverage. as: Series B PR 21-1B Classify costs Cromwell Furniture Company manufactures sofas for distribution to seve chains. The following costs are incurred in the production and sale of sof- a. Fabric for sofa coverings b. Wood for framing the sofas id in attorneys in defense of the company in a paten
