Question
Calculate the breakeven point in Units. Round any partial units up. Calculate the sales dollars rounded to the nearest dollar needed to increase operating income
Calculate the breakeven point in Units. Round any partial units up.
Calculate the sales dollars rounded to the nearest dollar needed to increase operating income by $100,000. Ignore minor rounding difference in your answer. - i.e. increase operating income by $99,950 to $100,050.
To the nearest dollar what would sales revenue need to be to earn net income of $175,000. Ignore minor rounding differences - i.e. net income can range from $149,900 to $150,100
Assuming there will be no interest expense, determine the necessary units to be produced and sold to earn net income of $150,000. Ignore minor rounding differences - i.e. round up the units to be within the range from $149,900 to $150,100.
Data Set
CVP Limited Income Statement for the Year Ended December 31, 2020
Units produced and sold 10,000
Sales $1,000,000
Direct Material 120,000
Direct Labour 30,000
Variable Manufacturing Overhead 25,000
Fixed Manufacturing Overhead 550,015
Gross Margin 274,985
Fixed Selling General and Administrative Expense 140,000
Variable Selling General and Administrative Expense 40,000
Operating Income 94,985
Interest Expense 66,500
Net Income before Taxes 28,485
Income Tax Expense at 30% Rounded 8,500
Net Income $19,985
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