Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

formulas added please Home Enable Editor B14 Page Layout Formulas Data Review View Help JMP Search D PROTECTED VIEW Be careful--files from the Internet can

image text in transcribed
image text in transcribed
formulas added please
Home Enable Editor B14 Page Layout Formulas Data Review View Help JMP Search D PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safet to stay in Protected View Contribution Margin (CM) A B D E F G H 4 5 Fields Company sold 30,000 units of its product for the current year and the data is show below. 6 The current capacity of Fields Company's production facility is 40,000 units per year. 7 8 Fields Company 1. 2. 9 Contribution Margin Income Statement Calculate Calculate 10 For the year ended December 31, 2019 per UnitRatios 11 Total Per Unit Ratios 12 Sales $ 900,000 100% 13 Variable Costs 360,000 14 Contribution Margin (CM) 540,000 15 Fixed Costs 396,000 16. Net Loss 144,000 17 18 19 3. Compute the break-even point in dollar sales and units. 20 Sales $ units 21 22 4. Compute the sales revenue needed to earn a target profit of $300,000. 23 Sales $ 24 25 5. Compute the units needed to be sold to earn a target profit of $450,000. 26 units 27 28 6. What will the new operating income/(loss) be if Fields Company increases the selling price per 29 unit by S6, increase the advertising by $120,000 per year, and increase unit sales by 5,000 units 30 for the year. 31 New Operating Income/(Loss) 32 33 Explain: 34 7. What will the impact to the operating income/(loss) if Fields Company decreases the variable 35 cost ner unit hy $2 increase the advertising hv$70.000 ner vear and increase unit sales hy 8 9 Explain: 0 8. What will the impact to the operating income/(loss) if Fields Company decreases the selling 11 price per unit by $3, increases the variable cost per unit by $1 due to buying better materials, 42 and increase unit sales by 2,000 units for the year. 43 Imnart to annuntine inanm

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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