Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please focus on question e and question f, thanks Trevino Company makes and sells products with variable costs of $24 each. Trevino incurs annual xed

please focus on question e and question f, thanks

image text in transcribed
Trevino Company makes and sells products with variable costs of $24 each. Trevino incurs annual xed costs of $315,000. The current sales price is $87. Required The following requirements are interdependent. For example, the $252,000 desired prot introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. a. b. g. h. Determine the contribution margin per unit. Determine the break-even point in units and in dollars. Conrm your answer by preparing an income statement using the contribution margin format. . Suppose that Trevino desires to earn a $252,000 prot. Determine the sales volume in units and dollars required to earn the desired prot. Conrm your answer by preparing an income statement using the contribution margin format. . If the sales price drops to $80 per unit, what level of sales is required to earn the desired prot? Express your answer in units and dollars. Conrm your answer by preparing an income statement using the contribution margin format. Page 141 . If xed costs drop to $280,000, what level of sales is required to earn the desired prot? Express your answer in units and dollars. Conrm your answer by preparing an income statement using the contribution margin format. If variable cost rises to $30 per unit, what level of sales is required to earn the desired prot? Express your answer in units and dollars. Conrm your answer by preparing an income statement using the contribution margin format. Assume that Trevino concludes that it can sell 10,000 units of product for $80 each. Recall that variable costs are $30 each and xed costs are $280,000. Compute the margin of safety in units and dollars and as a percentage. Draw a break-even graph using the cost and price assumptions described in Requirement g

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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 Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions

Question

dy 31.x +y=4x+1, y(1) = 8 dx

Answered: 1 week ago