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Can you help me find the 3 Scenarios values APPLY THE CONCEPTS: Effect of changes to Sales Price, Variable Costs and Fixed Costs Now consider
Can you help me find the 3 Scenarios values
APPLY THE CONCEPTS: Effect of changes to Sales Price, Variable Costs and Fixed Costs Now consider each of the following scenarios for Stewart Manufacturing. Calculate the contribution margin (CM) per unit, rounded to nearest dollar, and the new break-even point in units, rounded to the nearest ) whole unit, for each scenario separately. Scenario 1 Scenario 2 Scenario 3 Stewart has been experiencing quality problems with a Stewart will dispose of a After some extensive market research, Stewart has materials supplier. Changing suppliers will improve the machine in the factory. The determined that a sales price increase of $2 per quality of the product but will cause direct materials costs depreciation on that equipment unit will not affect the sales volume and will be to increase by $1 per unit. is $500 per month. effective immediately. CM per unit: $[:] CM per unit: D CM per unit: D Break-even units: Break-even units: E units [:] Break-even units: E units units Feedback F ck APPLY THE CONCEPTS: Break-Even Point in Units The break-even point can be expressed in terms of sales dollars or number of units. The breakeven units tells us how many units must be sold so that operating income is $0. Assume that you are part of the accounting team for Stewart Manufacturing. The company currently expects to sell 362 units for total revenue of $16,300 each month. Stewart Manufacturing estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $4,800 are also expected, which includes xed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Stewart Manufacturing Contribution Margin Income Statement Sales 515' 16,300 iLess: Variable costs V J 10,500 Contribution margin v J 5,800 iLess: Fixed costs in J 4,800 Operating income $l 1,000 Feedback K'kk Stewart Manufacturing is examining cost behavior patterns. Your recommendation is to rst determine the break-even point in units. First, calculate the contribution margin (CM) per unit (rounded to the nearest dollar). s- 4 Next, complete the formula below to determine the break-even units. Total Fixed Costs / Contribution Margin per Unit = UnitsStep by Step Solution
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