Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,810,000 pages at a price of $0.1 each in the coming year.

Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,810,000 pages at a price of $0.1 each in the coming year. Product costs include: Direct materials $0.015 Direct labor $0.005 Variable overhead $0.002 Total fixed overhead $154,880 There is no variable selling expense; fixed selling and administrative expenses total $37,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio. 1. Calculate the break-even point in units. fill in the blank 1 units 2. Calculate the break-even point in sales revenue. $fill in the blank 2 3. Calculate the margin of safety in units for the coming year. fill in the blank 3 units 4. Calculate the margin of safety in sales revenue for the coming year. $fill in the blank 4 5. What if the total selling and administrative expenses are reduced to $13,600? Recalculate the following: a. Break-even point in units fill in the blank 5 units b. Break-even point in sales revenue $fill in the blank 6 c. Margin of safety in units for the coming year fill in the blank 7 units d. Margin of safety in sales revenue for the coming year

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

More Books

Students also viewed these Accounting questions

Question

How We Listen?

Answered: 1 week ago