Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2019, Sandhill Company had a break-even point of $271,000 based on a selling price of $4 per unit and fixed costs of $135,500. In

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
In 2019, Sandhill Company had a break-even point of $271,000 based on a selling price of $4 per unit and fixed costs of $135,500. In 2020, the selling price and the varie change, but the break-even point increased to $441,000. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution mar places, e.g. 20.) Variable costs per unit Contribution margin ratio % Compute the increase in fixed costs for 2020. Increase in fixed cost Click if you would like to show Work for this question: 00400 Show Work LIVE FOR Question Attempts: Unlimited Sheridan Company had $183,900 of net income in 2019 when the selling price per unit was $155, the variable costs per unit were $95, and the fixed costs were $572,100. Management expects p unit data and total fixed costs to remain the same in 2020. The president of Sheridan Company is under pressure from stockholders to increase net income by $50,400 in 2020. Compute the number of units sold in 2019. units Compute the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level units Assume that Sheridan Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders' desired profit level? New selling price Blossom provides shuttle service between four hotels near a medical center and an international airport. Blossom uses two 10-passenger vans to offer 12 round trips per day. A reo activity in the form of a cost-volume-profit income statement is shown below. $33,350 $4,109 1,860 701 Sales (1,450 passengers) Variable costs Fuel Tolls and parking Maintenance Contribution margin Fixed costs Salaries Depreciation Insurance Net income 6,670 26,680 13,700 2,900 1,800 18,400 $8,280 Calculate the break-even point in dollars. Break-even point Calculate the break-even point in number of passengers. Rreak even nint assengers Depreciation Insurance 2,900 1,800 18,400 $8,280 Net income Calculate the break-even point in dollars. Break-even point Calculate the break-even point in number of passengers. Break-even point passengers Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point

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

International Financial Management

Authors: Cheol Eun

9th Edition

1260788865, 9781260788860

More Books

Students also viewed these Finance questions

Question

=+f) Are any six points in a row increasing (or decreasing)?

Answered: 1 week ago

Question

8.7 Evaluate at least five traditional training techniques.

Answered: 1 week ago

Question

8.5 Identify the five-step training process.

Answered: 1 week ago