B D E F 2 1 To aid in planning, Jay Corporation is preparing a contribution format income statement. 3 Budgeted information for Quarter 1 of Year 3: 4 Sales in units 17.000 5 Sales price per unit s 48.00 6 S 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of goods sold 29.00 per unit 9 Sales commissions 9.50% per dollar of sales 10 11 Administrative salaries S 45,000.00 per quarter Rent expense S 27,000.00 per quarter 13 Depreciation expense s 36,000.00 per quarter 12 15 Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the last eight quarters are: 16 17 Year Total Shipping Cost Units 18 Quarter 1 67,000.00 12,500 Quarter2 s 94,000.00 21,000 20 Quarter 3 s 89,800.00 13,800 21 Quarter 4 S 92,600.00 20,000 22 Year 2 23. Ouarter 72.500.00 13.700 Sheet1 19 s - READY 100% Attempt(s) 1. Analyze a mixed cost using a scattergraph plot and the high-low method. 2. Prepare income statements for a merchandising company using the traditional and contribution formats. FILE INSERT Sign In Calibri Paste High-Low Method: Contribution Format Income Statement - Excel 6 X HOME PAGE LAYOUT FORMULAS DATA REVIEW VIEW - A A BIU. Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Styles AI fe To aid in planning, Jay Corporation is preparing a contribution format income DE To aid in planning, Jay Corporation is preparing a contribution format income statement Font A B F 2 6 3 Budgeted information for Quarter 1 of Year 3: 4 Sales in units 17,000 5 Sales price per unit S 48.00 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of goods sold 29.00 per unit 9 Sales commissions 9.50% per dollar of sales 10 11 Administrative salaries 45,000.00 per quarter 12 Rent expense S 27,000.00 per quarter 13 Depreciation expense 36,000.00 per quarter S S 1. Determine the break-even point. 2. Compute the margin of safety and explain its significance. 3. Compute the degree of operating leverage at a particular level of sales and explain how it can be used to predict changes in net operating income. CVP Analysis - Excel ? - FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri Paste BIU. Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font F7 fx D E A B 1 Given the following information complete a CVP analysis 2 for JPL, Inc.: 3 4 Unit sales 11.200 units 5 Selling price per unit $75 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $210,000 8 Use the data to answer the following 10 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 12 Variable expenses ner unit per unit nervinit A B D E F i Given the following information complete a CVP analysis 2 for JPL, Inc.: 3 4 Unit sales 11,200 units 5 Selling price per unit $75 per unit 6 Variable expenses per unit $45 per unit 7 Fixed expenses $210,000 8 9 Use the data to answer the following. 10 per unit per unit 11 1. Compute the CM ratio and variable expense ratio 12 Selling price per unit 13 Variable expenses per unit 14 Contribution margin per unit 15 16 CM ratio 17 Variable expense ratio per unit 18 units 19 2. Compute the break-even point 20 Break-even in unit sales 21 Break-even in dollar sales 22 23 3. Compute the margin of safety 24 Margin of safety in dollars Sheetl ... READY 2 100% Attempts)
