Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Alternate problem D Complete the requested information presented below in each independent situation. a. Determine the contribution margin per unit and the break-even point in
Alternate problem D Complete the requested information presented below in each independent situation. a. Determine the contribution margin per unit and the break-even point in sales units for Cowboys Company that has fixed costs of $63,000, variable cost of $24.50 per unit, and a selling price of $35.00 per unit. b. Wildcats Company has fixed costs of $56,000. In March, sales were $670,000, and variable costs were $536,000. Compute the contribution margin ratio and the break-even point in sales dollars. c. Hoosiers Company had sales in June of $84,000; variable costs of $46,200; and fixed costs of $50,400. At what level of sales, in dollars, would the company break even? d. What would the break-even point in sales dollars have been in (c) if variable costs had been 10% higher? e, what would the break-even point in sales dollars have been in (c) if fixed costs had been 10% higher? f Which option would you suggest for Hoosiers- keep pricing the same, increase variable costs by 10%, or increase fixed costs by 10%? Why
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started