Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me answer question 7 Add to Q & A % Edit & Create a Califorina Car Company 5. Compute CCC's estimated 2019 contribution
please help me answer question 7
Add to Q & A % Edit & Create a Califorina Car Company 5. Compute CCC's estimated 2019 contribution margin ratio. In Case 1-4 you calculated the variable manufacturing costs that are presented for you in Exhibit 1-5.2. Assume that $2,000,000 of selling expenses and $1,000,000 of administrative expenses are variable. Hint: Compute total sales revenue and total variable costs at CCC's budgeted 2019 level of production and sales. There is a definition in the glossary for Contribution Margin. 6. Compute CCC's 2019 estimated breakeven sales level. 1. Discuss how likely it is that CCC will not attain a level of sales necessary to break even, if costs remain at the planned levels. In other words, will it take a large or small shortfall in projected sales to cause planned income to fall to zero? Requirement 5: Contribution Margin Ratio Total Reveme 196,587.500 Total Variable Costs $ 85,611.050 CMR $ 56.4596 Requirement 6: CCC Breakeven Total Fixed Costs 59,053,700 CMR 0.565 Breakeven Sales 104.609.755 Requirement 7: Risk Assessment P ^ le 3:17 PM 11/6/2018Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started