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ACCT 2060- Chapter 5 In Class BP . At annual sales of S900,000, the Ebo product has the following unit sales price and costs: Sales

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ACCT 2060- Chapter 5 In Class BP . At annual sales of S900,000, the Ebo product has the following unit sales price and costs: Sales price om10L Prime cost Manufacturing overhead:Soles sPuxUts u SRu- $1 Variable Fixed qtok2on unit sales nit Sates- 900k o-IIb) Selling & admin. costs Variable Total costs Profit What is Ebo's breakeven point in units? Cmiono (cn 2. The following information pertains to Syl Co.: Soies Saies Revenues $800,000 $160,000 Variable costs Fixed costs What is Syl's breakeven point in revenues? 90o,000- 100,000 00,000 GE in $:50000 3. Comprehensive Problem Iron Decor manufactures decorative iron railings. In preparing for n management has developed the following estimates: Total Per Unit S1000,000 s50.00 $200,000 $10.00 s50,000 $2.50 Sales (20,000 units). Direct materials -Direct labor (variable) Manufacturing overhead: Variable.$70,000 $3.50 $80,000 $4.00 Selling&administrative: Variable ble $100,000 5.00 $30,000 $1.50 Fixed Required: Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. If the sales volume increases by 20 change in net operating income? d. Break-even in units e. Break-even in dollar sales. t. What would be the sales in units that will assure the company to gain its $325,000 profit? g. What would be the sales in dollars that will assure the company to gain its S165,500 pro h. Margin of safety i. What company? % with no change in total fixed expenses, what will be the fit? is the degree of operating leverage if the company? What is this number mean to the

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