Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help on the last part please, thank you. B D E GH Exercise 4-12 CVP Analysis, Profit Equation - SEE TEXTBOOK PAGE 4-33. (16 POINTS)

Help on the last part please, thank you.

image text in transcribed

image text in transcribed

B D E GH Exercise 4-12 CVP Analysis, Profit Equation - SEE TEXTBOOK PAGE 4-33. (16 POINTS) Lake Stevens Marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30 The selling price per dollar of sales is. $1.00 Required a. What is the break-even point per month in sales dollars? Selling price per dollar of sales Variable cost per dollar of sales Contribution margin per dollar of sales $1.00 S0.30 $0.70 Break-even point = $ 350,000 $0.70 $ 500.000 $70,000 2 b. What level of sales is needed for a monthly profit of Sales required = $ 420,000 $0.70 $ 600,000 $1,000,000. What is the c. For the month of July, the marina anticipates sales of expected level of profit? Expected profit $ 700,000 $ 350.000 $ 350,000 Font Alignment Clipboard S- Number +36 Xf B D E G 7 Consider the following after you have completed the requirements of E4-12 3 Exercise 4-12 CVP Analysis, Profit Equation - SEE TEXTBOOK PAGE 4-33. (16 POINTS) Lake Stevens Marina has estimated that fixed costs per month are $365.000 and variable cost per dollar of sales is $0.25 The selling price per dollar of sales is: $1.00 Selling price per dollar of sales 2.1. Total fixed costs increase to $365,000. Variable cost per dollar of sales Contribution margin per dollar of sales Break-even point = $ 365,000 $0.70 $ 521,429 $1.00 $0.25 $0.75 - 2. Variable costs decline to $0.25 per sales dollar. Break-even point = S 365,000 $0.75 $ 486,667 3. The anticipated sales volume increases to $1,100,000. Break-even point = Comment on the BEPs from the above 3 analyses

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

Students also viewed these Accounting questions