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INSTRUCTIONS: JUST ANSWER D . ) PLEASE.... Wildhorse Corporation has collected the following information after its first year of sales. Sales were $ 1 ,
INSTRUCTIONS: JUST ANSWER D PLEASE.... Wildhorse Corporation has collected the following information after its first year of sales. Sales were $ on units, selling expenses $ variable and fixed direct materials $ direct labor $ administrative expenses $ variable and fixed and manufacturing overhead $ variable and fixed Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by next year. a Your answer is correct. Compute the contribution margin for the current year and the projected year, and the fixed costs for the current year. Assume that fixed costs will remain the same in the projected year. Contribution margin for current year $ Contribution margin for projected year $ Fixed Costs Your answer is correct. Compute the breakeven point in units and sales dollars for the current year. Breakeven point in units units Breakeven point in dollars c Your answer is correct. The company has a target net income of $ What is the required sales in dollars for the company to meet its target? Sales dollars required for target net income d If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is what is its margin of safety ratio? Round answer to decimal place, eg
INSTRUCTIONS: JUST ANSWER D PLEASE.... Wildhorse Corporation has collected the following information after its first year of sales. Sales were $ on units,
selling expenses $ variable and fixed direct materials $ direct labor $ administrative expenses
$ variable and fixed and manufacturing overhead $ variable and fixed Top management has
asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by next
year.
a
Your answer is correct.
Compute the contribution margin for the current year and the projected year, and the fixed costs for the current year.
Assume that fixed costs will remain the same in the projected year.
Contribution margin for current year $
Contribution margin for projected year $
Fixed Costs
Your answer is correct.
Compute the breakeven point in units and sales dollars for the current year.
Breakeven point in units
units
Breakeven point in dollars
c
Your answer is correct.
The company has a target net income of $ What is the required sales in dollars for the company to meet its target?
Sales dollars required for target net income
d
If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is
what is its margin of safety ratio? Round answer to decimal place, eg
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