Question
CostVolumeProfit Incomestatement-foryearendingDec2017 Sales(20,000units)$600,000 VariableExpense$360,000 Contributionmargin$240,000 Fixedexpense$150,000 Netincome$90,000 Questions: 1. Whatisthecompanybreak-evenpoint? 2. Howmanymoreunitswouldthecompanyhavehadtoselltoearnnetincomeof$150,000in2017? 3. Ifthecompanyexpectsa25%increaseinsalesin2018,whatwouldbetheexpectednetincomein2018? 4. Howmuchsalesdollarswouldthecompanyhavetogenerateinordertoearnatargetneincomeof$160,000in2018?
CostVolumeProfit
Incomestatement-foryearendingDec2017
Sales(20,000units)$600,000
VariableExpense$360,000
Contributionmargin$240,000
Fixedexpense$150,000
Netincome$90,000
Questions:
1.Whatisthecompanybreak-evenpoint?
2.Howmanymoreunitswouldthecompanyhavehadtoselltoearnnetincomeof$150,000in2017?
3.Ifthecompanyexpectsa25%increaseinsalesin2018,whatwouldbetheexpectednetincomein2018?
4.Howmuchsalesdollarswouldthecompanyhavetogenerateinordertoearnatargetneincomeof$160,000in2018?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
134725980, 9780134726656 , 978-0134725987
