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could you fill in the blanks for problem 3,4, and 5 P. 21-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage
could you fill in the blanks for problem 3,4, and 5
P. 21-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc, expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2012. A summary report of these estimates is as follows: It is expected that 8,000 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 9,000 units. Instructions 1. Prepare an estimated income statement for 2012. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? 6. Determine the operating leverage. Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (') will appoar to the right of an incorrect entry. For sach unit level of sales, enter the total sales dollare and fotal costs. The chart ot right aitl be plotied as you aniler the amounts. Atter all points are plotted, grab and move the labelis provided at the len to lidentity aach area Step by Step Solution
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