Question
The budgets of four companies yield the following information: Company Sales revenue Variable costs Fixed costs Operating income (loss) Units sold Contribution margin per
The budgets of four companies yield the following information: Company Sales revenue Variable costs Fixed costs Operating income (loss) Units sold Contribution margin per unit Contribution margin ratio Requirements: Blue $960,000 (1) (2) $32,000 $2.70 (3) Red $(4) 132,000 145,000 $(5) $(6) 0.70 Green $770,000 462,000 220,000 $(7) (8) $77.00 (9) Yellow $(10) 162,000 (11) $93.000 $16.00 0.40 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) 2. Which company has the lowest break-even point in sales dollars? 3. What causes the low break-even point?
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