Please explain each step. 1.Blane Company has the following data: Total Sales $800,000 Total Variable Costs $300,000
Question:
Please explain each step.
1.Blane Company has the following data: Total Sales $800,000 Total Variable Costs $300,000 Fixed Costs $200,000 Units sold 50,000 units What will operating income be if units sold double to 100,000 units?
2.A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000.
a. What was the break-even point?
b. What was the operating income?
c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000?
3.LA Stampers has collected new data over the last 3 months to perform an analysis of their budgeting and cost computations:
Average production labour cost per month $5,500
Average raw materials consumed per month $1,475
Average utilities for the production facility per month $500
Variable indirect manufacturing overhead costs per month $1,950
Fixed costs per month $2,750
Average production volume in units 1,925 hub caps
Selling price per hub cap $9.95 each
Compute the unit variable cost, the contribution margin per unit, and the break-even point in units?
4.The Tom Company reports the following data.
Sales $600,000
Variable costs $400,000
Fixed costs $100,000
Determine Tom Company's operating leverage.