Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

for which one i belive that is all the information Required Information [The following information applies to the questions displayed below.] Perez Company makes and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
for which one i belive that is all the information
Required Information [The following information applies to the questions displayed below.] Perez Company makes and sells products with variable costs of $24 each. Perez incurs annual fixed costs of $393,000. The current sales price is $99. Note: The requirements of this question are interdependent. For example, the $300,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required a. Determine the contribution margin per unit. Contribution margin per unit Required information (The following information applies to the questions displayed below.) Perez Company makes and sells products with variable costs of $24 each. Perez incurs annual fixed costs of $393, The current sales price is $99. Note: The requirements of this question are interdependent. For example, the $300,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req B1 Reg B2 Determine the break even point h units and in dollars. (Do not round Intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Break-even point in units Break-even point in dollars b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg B1 Req B2 Prepare an income statement using the contribution margin format. (Do not round intermediate calculations. Round your final answers to nearest whole number.) PEREZ COMPANY Income Statement Net Income (loss) . Suppose that Perez desires to earn a $300,000 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg Ci Reg C2 Suppose that Perez desires to earn a $300,000 profit. Prepare an income statement using the contribution margin format. (Do not round intermediate calculations. Round your final answers to nearest whole number.) PEREZ COMPANY Income Statement . If fixed costs drop to $304,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg E1 Reg E2 If fixed costs drop to $304,000, prepare an income statement using the contribution margin format. Do not round Intermediate calculations. Round your final answers to nearest whole number.) PEREZ COMPANY Income Statement Req E1 ducts with variable costs of $24 each. Perez incurs annual fixed costs of $393,000. The current sales price is $99. Note: The requirements of this question are interdependent. For example, the $300,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement de applies to the subsequent requirements. g. Assume that Perez concludes that it can sell 12,400 units of product for $80 each. Recall that variable costs are $30 each and fixed costs are $304,000. Compute the margin of safety in units and dollars and as a percentage. (Do not round intermediate calculations. Round your answers to the nearest whole number. Round your percentage answer to nearest whole percentage For example, 0.1234 should be entered as 1294) Margin of safety in units Margin of safety in dollars Margin of safety

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

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions

Question

What is Haddop and what are its basic components?

Answered: 1 week ago