Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $420,000 Selling
Cullumber Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $420,000 Selling expenses-variable $16,800 Direct materials 75,600 Selling expenses-fixed 16,800 Direct labour 50,400 Administrative expenses-variable 8,400 Manufacturing overhead-variable i 16,800 Administrative expenses-fixed 8,400 Manufacturing overhead-fixed 25,200 Assuming fixed costs and net sales are spread evenly throughout the year, determine Cullumber's monthly break-even point in units and dollars. (Round answers to O decimal places, eg. 5,275.) Monthly break-even in units Monthly break-even in dollars Question Part Score: units Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio Annual margin of safety ratio % % --/2 Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, eg. 15 or 15%) Contribution margin ratio % Annual margin of safety ratio Annual operating income $ Question Part Score: --/3 Determine the percentage increase in annual operating income if Cullumber Corporation increases its selling price by 16% and all other factors (including demand) remain constant. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in profit % Question Part Score Assume the price remains at $40 per unit and variable costs remain the same per unit, but fixed costs increase by 16% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual operating income calculated in part second part. (Round answer to 2 decimal places, eg. 15.25%) Percent increase in unit sales % Question Part Score Determine the sales required to earn an operating income of $302,400 after tax. Cullumber Corporation's income tax rate is 50%. Sales required to earn an operating income of $302,400 $ --/1 --/1
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