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Can you help me find the following values: Week 2 - Assignment APPLY THE CONCEPTS: Break-Even Point in Units The break-even point can be expressed
Can you help me find the following values:
Week 2 - Assignment 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 fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Stewart Manufacturing Contribution Margin Income Statement Sales 2- J Less: Variable costs v V V Contribution margin W I D X Less: Fixed costs w \\l C] J Operating income D X Feedback V Check MyWork Review the formula and structure of this statement from the rst two steps above, and apply these values. Recall that direct labor and direct materials are included with variable costs. 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). X Next, complete the formula below to determine the break-even units. Total Fixed Costs / Contribution Margin per Unit = Units Feedback 7 v Check My Work Use the information from the prior step to calculate these values. The contribution margin per unit is simply the contribution margin from the statement above divided by the number of units soldStep by Step Solution
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