Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

College Spirit Calendars impeints calendars with colege names. The company has foxed oxpenses of $1,095,000 each month plus variable expenses of 54.00 per carton of

image text in transcribed
image text in transcribed
image text in transcribed
College Spirit Calendars impeints calendars with colege names. The company has foxed oxpenses of $1,095,000 each month plus variable expenses of 54.00 per carton of calondars. Or the variable oxpense, 66\% is cost of goods sold, while the remaining 34% relates to variable operating expenses. The company sells each carton of caiendars for $12.00. Read the tequirements: Requirement 1. Compute the number of cartons of calendars that College Spirt Calendars must soll each month to breakeven. Begin by determining the basic income statement equation. Using the basie income statement equation you determined above solve for the number of cartons to break even. The breakevon sales is cartons. Requirement 2. Compute the dollar amount of monthly sales College Spint Calendars needs in order to eam $312.000 in operating income. Begin by determining the tormula. (Round the contribution margin ratio to two decimal places.) The monthly sales needed to earn $312,000 in operating income is Requirement 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales? Begin by determining the formula. = Margin of safety (in dollars) The margin of safety is What is the operating leverage factor at this level of sales? Begin by determining the formula. (Round the operating leverage factor to three decimal places.) The operating leverage factor is If volume increases 11%, then operating income will increase Prove your answer. (Round the percentage to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Susan V. Crosson, Belverd E. Needles

8th Edition

9780618777174, 618777180, 618777172, 978-0618777181

More Books

Students also viewed these Accounting questions

Question

Describe the importance of global talent management.

Answered: 1 week ago

Question

Summarize the environment of recruitment.

Answered: 1 week ago