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I need help wit requirement 1 1. Use the equation approach to compute the number of flags Kincaid must sell each year to break even.
I need help wit requirement 1
1. | Use the equation approach to compute the number of flags Kincaid must sell each year to break even. | ||||||||||
2. | Use the contribution margin ratio approach to compute the dollar sales Kincaid needs to earn $32,500 in operating income for 2016. (Round the contribution margin ratio to two decimal places.) | ||||||||||
3. | Prepare Kincaids contribution margin income statement for the year ended December 31, 2016, for sales of 78,000 flags. (Round your final answers up to the next whole number.) | ||||||||||
4. | The company is considering an expansion that will increase fixed costs by 17% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should Kincaid undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) | ||||||||||
Requirement 1 | |||||||||||
(Net Sales Revenue - Variable Costs) - Fixed Costs = Target Profit | |||||||||||
Show (in words) the Equation for Total Net Sales Revenue | |||||||||||
Show (in words) 'Equation for Total Variable Costs | |||||||||||
Rewrite the two above Equations to Simplify | |||||||||||
Now include numbers for the Equation Above | |||||||||||
Simplify |
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