budgets of four companies yield the following information:

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Requirements

1.	Fill in the blanks for each company.
2.	Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Question content area bottom

Part 1

Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.)

		Q
	Target sales. . . . . . . . . . . . . . . . . .	$800,000
	Variable expenses. . . . . . . . . . . . .	232,000
	Fixed expenses. . . . . . . . . . . . . . .
	Operating income (loss). . . . . . . .	$213,000
	Units sold. . . . . . . . . . . . . . . . . . . .
	Contribution margin per unit. . . . .	$6.40
	Contribution margin ratio. . . . . . . .

R

$400,000

156,000

125,000

0.65

S

$181,250

98,000

11,600

$10.00

T

645,000

$151,000

15,000

$43.00

Part 2

Requirement 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Begin by determining the formula, then compute the break even sales for each company one at a time. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.)

(

+

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=

Breakeven sales

Part 3

Q

(

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=

Part 4

R

(

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=

Part 5

S

(

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=

Part 6

T

(

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=

Part 7

Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Q Company

R Company

S Company

T Company

has the lowest breakeven point, primarily due to

its high fixed costs

its low fixed costs

its high sales price

.