Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

I need help confirming the answers to question 9 and 10 are correct. This is for cost management accounting The CPM Company manufactures a commercial

I need help confirming the answers to question 9 and 10 are correct. This is for cost management accountingimage text in transcribedimage text in transcribed

The CPM Company manufactures a commercial push lawn mower. You will use the following perform Cost-Volume-Profit-Analysis for CPM Company's commercial push lawn mower produ uses units produced as the activity base in estimating cost behavior. Data for estimating Cost Behavior: Month Units Produced Total Cost January 1000 $247,500 February 1200 $289,500 March 1400 $328,500 April 1600 $366,500 May 1850 $407,500 June 2000 $450,500 July 2200 $486,500 August 2400 $527,500 September 2600 $568,500 October 2800 $609,500 November 3000 $650,500 December 3200 $686,500 Chart Title $800,000 $600,000 $400,000 $200,000 SO 0 500 1000 1500 2000 2500 3000 3500 Green line intersects "Y" axis at $45,000 cost. *Orange line equals 1800 units and $400,000 cost. 9. With a revised selling price of $450 for a lawn mower and assuming no changes to fixed or variable costs calculate the Revised break-even point in units. (Show your equation with your answer, round answer to 2 decimals) (12 X 12,965,37,5000-(-25,250 X 5619,000)/(12 X 58,822,500)-25,250 X 25,250 13,704,750,000 (12 X 12965375000) - 25,250 X 5619,000) 68,307,500 (12 X 58,822,500) - (25,250 X 25,250) Variable cost per unit13704750000/68307500=$200.63 Break-Even Point:(553,092.50/(450-200.63) Break-Even Point 2,217.96 units 10. Using the "Revised" information and a Target Pretax Income of $2,000,000 calculate the Dollar Sales at Target After-Tax Income (Show your equation with your answer, round answer to 2 decimals) Sales:533,092.50+2,000,000/(450-200.63)=10,238.17 sales units 10,238.17 X 450=4,607,176.50 sales value The CPM Company manufactures a commercial push lawn mower. You will use the following perform Cost-Volume-Profit-Analysis for CPM Company's commercial push lawn mower produ uses units produced as the activity base in estimating cost behavior. Data for estimating Cost Behavior: Month Units Produced Total Cost January 1000 $247,500 February 1200 $289,500 March 1400 $328,500 April 1600 $366,500 May 1850 $407,500 June 2000 $450,500 July 2200 $486,500 August 2400 $527,500 September 2600 $568,500 October 2800 $609,500 November 3000 $650,500 December 3200 $686,500 Chart Title $800,000 $600,000 $400,000 $200,000 SO 0 500 1000 1500 2000 2500 3000 3500 Green line intersects "Y" axis at $45,000 cost. *Orange line equals 1800 units and $400,000 cost. 9. With a revised selling price of $450 for a lawn mower and assuming no changes to fixed or variable costs calculate the Revised break-even point in units. (Show your equation with your answer, round answer to 2 decimals) (12 X 12,965,37,5000-(-25,250 X 5619,000)/(12 X 58,822,500)-25,250 X 25,250 13,704,750,000 (12 X 12965375000) - 25,250 X 5619,000) 68,307,500 (12 X 58,822,500) - (25,250 X 25,250) Variable cost per unit13704750000/68307500=$200.63 Break-Even Point:(553,092.50/(450-200.63) Break-Even Point 2,217.96 units 10. Using the "Revised" information and a Target Pretax Income of $2,000,000 calculate the Dollar Sales at Target After-Tax Income (Show your equation with your answer, round answer to 2 decimals) Sales:533,092.50+2,000,000/(450-200.63)=10,238.17 sales units 10,238.17 X 450=4,607,176.50 sales value

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_2

Step: 3

blur-text-image_3

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

Accounting

Authors: Carl S. Warren, Philip E. Fess, James M. Reeve, C.Rollin Niswonger, Jim Reeve

18th Edition

0538839333, 978-0538839334

More Books

Students explore these related Accounting questions