Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello can someone please help me solve this problem? Cost-Volume-Profit Equation, Basic Concepts, Solving for Unknowns Legrand Company produces hand cream in plastic jars. Each

Hello can someone please help me solve this problem?

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Cost-Volume-Profit Equation, Basic Concepts, Solving for Unknowns Legrand Company produces hand cream in plastic jars. Each jar sells for $3.40. The variable cost for each jar (materials, labor, and overhead) totals $2.55. The total fixed cost is $58,140. During the most recent year, 81,600 jars were sold. Required: 1. What is the break-even point in units for Legrand? What is the margin of safety in units for the most recent year? 2. Prepare an income statement for Legrand's most recent year. 3. How many units must be sold for Legrand to earn a profit of $25,500? 4. What is the level of sales dollars needed for Legrand to earn operating income of 10% of sales? Refer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating income Operating loss Sales revenue Total contribution margin Total fixed cost Total variable cost 1(a) What is the break-even point in units for Legrand? The break-even point in units is 1(b) What is the margin of safety in units for the most recent year? The margin of safety in units is 2. Prepare an income statement for Legrand's most recent year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If there is an operating loss, enter the amount as a negative number using a minus sign. Legrand Company Income Statement For the most recent year 3. How many units must be sold for Legrand to earn a profit of $25,500? 4. What is the level of sales dollars needed for Legrand to earn operating income of 10% of sales? 15

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

Financial Accounting For Decision Makers

Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor

5th Edition

1405888210, 9781405888219

More Books

Students also viewed these Accounting questions