need help on 3c
ii Crane Profiles provides testing services to school districts that wish to assess students' reading and mathematical abilities. Last year Crane evaluated 30,000 math tests and 10,000 reading tests. An income statement for last year follows. Math Testing Reading Testing Per Unit $48 Total $960,000 672,000 $288,000 Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Per Unit $32 22.40 $9.60 Total $480,000 240,000 $240,000 24 Total Company $1,440,000 912,000 528,000 360,000 $168,000 $24 (a) Your Answer Correct Answer (Used) What is Crane's breakeven point in sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to O decimal places, e.g. 5,275.) Your Answer Correct Answer (Used) What is Crane's breakeven point in sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to decimal places, eg. 5,275.) $ 981,792 Breakeven sales (b) Your answer is correct. In an effort to raise the demand for reading tests, managers are planning to lower the price from $48 per test to $32 per test, the current price of the math test. They believe that doing so will increase the demand for reading tests to 30,000. Prepare a contribution format income statement reflecting Crane's new pricing and demand structure. Crane Profiles Contribution Income Statement Math Testing Darllelt Total sen Your answer is correct. In an effort to raise the demand for reading tests, managers are planning to lower the price from $48 per test to $32 per test, the current price of the math test. They believe that doing so will increase the demand for reading tests to 30,000. Prepare a contribution format income statement reflecting Crane's new pricing and demand structure. Crane Profiles Contribution Income Statement Math Testing Total Per Unit Total Sales 960000 $ 32 961 Variable Expenses 672000 22.40 $ $ $ Contribution Margin 288000 9.60 $ 24 Fixed Expenses Operating Income /(Loss) e Textbook and Media Attempts: 1 of 3 used Your answer is correct. In an effort to raise the demand for reading tests, managers are planning to lower the price from $48 per test to $32 per test, the current price of the math test. They believe that doing so will increase the demand for reading tests to 30,000. Prepare a contribution format income statement reflecting Crane's new pricing and demand structure. Crane Profiles Contribution Income Statement Reading Testing Per Unit Total Per Unit Total Company 32 960000 32 $ 1920000 22.40 720000 24 1392000 i 9.60 40000 8 528000 360000 168000 e Textbook and Media Alamat 1 of Bucal (c) Your answer is incorrect. What will be Crane's breakeven point in sales dollars if this change is implemented? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to O decimal places, eg. 5,275.) Breakeven sales Do you recommend that Crane make the change? Crane should not make the change. Recommendation: e Textbook and Media Attempts: 1 of 3 used Submit Answer Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date
