Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

JenCo manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: Fixed costs

image text in transcribedimage text in transcribed
JenCo manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: Fixed costs 209,000 Sales 600,000 40 Variable costs 300,000 20 a) What is the contribution margin per unit? IContribution margin per unit = $ b) What is the company's CM ratio? Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12%) CM ratio = % c) What is the quarterly break-even paint in units? IBreakeven point in units = units d) What is the quarterly break-even point in dollars? IBreakeven point in dollars = I e) How many units would have to be sold each quarter to earn a target profit of $60,0007 I units I f) Verify your answer in e) by preparing a contribution margin income statement at the target sales level. (Select one) (Select one) (Select one) (Select one)._ (Select one)._ (Select one). (Select one)_ (Select one)_ g) Refer to the original data. Compute the company's margin of safety in dollars. IMargin of safety = I h) Refer to the original data. Compute the company's margin of safety percentage. Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12%) Margin of safety = % i) If sales increased by $60,000 per quarter and there is no change in fixed costs, by how much would you expect quarterly operating income to increase? IOperating income increases by $

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

Horngrens Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th Edition

0133117561, 978-0133117561

More Books

Students also viewed these Accounting questions