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Company T - ...........$ S 224,000. Target sales... Q R 687,500 $ 400,000 $ 192,500 156,000 Variable expenses .......... 270,000 93,000 Fixed expenses............. 90,000 $
Company T - ...........$ S 224,000. Target sales... Q R 687,500 $ 400,000 $ 192,500 156,000 Variable expenses .......... 270,000 93,000 Fixed expenses............. 90,000 $ $ 140,000 Operating income (loss)...... Units sold .. Contribution margin per unit .. $ 125,000 $ $ 12,500 8.96 $ 15,750 40.00 6.60 Contribution margin ratio .....- 0.65 The budgets of four companies yield the following information: Click the icon to view the budget information for the four companies.) Requirements 1. Fill in the blanks for each company. 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.) Target sales..................$ Variable expenses............. 687,500 192,500 Fixed expenses............... Operating income (loss) ........ $ 90,000 Units sold................... 6.60 Contribution margin per unit .... $ Contribution margin ratio ........|
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