Question
Bedco makes high quality beds. Each bed sells for $1,000. They sold 750 beds in 2020 and 900 beds in 2019. Their costs for both
Bedco makes high quality beds. Each bed sells for $1,000. They sold 750 beds in 2020 and 900 beds in 2019. Their costs for both years are presented below:
2019:
Cost of Goods Sold: $360,000
Operating Expenses: $220,000
Factory Rent: $60,000
2020:
Cost of Goods Sold: 300,000
Operating Expenses: 190,000
Factory Rent: 60,000
A. PROVIDE BEDCOS CONTRIBUTION MARGIN INCOME STATEMENT FOR 2020 AND 2019.
B. PROVIDE THE BEDCOS 2020 VARIABLE COST RATIO AND VARIABLE COST/UNIT.
C. PROVIDE THE BEDCOS 2020 CONTRIBUTION MARGIN RATIO AND CONTRIBUTION MARGIN/UNIT.
D. PART D: USING BREAK-EVEN ANALYSIS, DETERMINE THE BEDCOS 2020 BREAK-EVEN POINTS IN TERMS OF SALES DOLLARS AND NUMBER OF UNITS SOLD.
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