Question
Cardinal baby Cardinal Apparel Total Expected sales 2500 4500 7000 Revenue ($125;$275 per unit) $312.500 $1.237.500 $1.550.000 Variable Cost ($60;$100) $150.000 $450.000 $600.000 Contribution Margin
| Cardinal baby | Cardinal Apparel | Total | |
| Expected sales | 2500 | 4500 | 7000 |
| Revenue ($125;$275 per unit) | $312.500 | $1.237.500 | $1.550.000 |
| Variable Cost ($60;$100) | $150.000 | $450.000 | $600.000 |
| Contribution Margin | ? | ? | ? |
| Fixed cost | $120.000 | ||
| Operating Income | ? | ? | ? |
Cardinal Co. as a clothing company is now producing baby's clothes as well, apart fro adult womens clothes. The company owns Cardinal Baby and Cardinal apparel. Management summarizes the budget as follows (Above).
a. Fill in the blank of contribution margin and operating income b. Calculate BEP units and revenue of Cardinal Co.
c. Create CVP analysis from a company, and determine 1. Break even point 2. Sales that must be achieved to get a certain profit target 3. Margin of safety 4. Sensitivity analysis on fixed cost and variable cost
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Managerial Accounting
Authors: Morse Hartgraves
8th Edition
1618532359, 9781618532350
