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Please help me solve this question. PART A-15 marks Newton Cellular manufactures and sells the Top Line cellphone. For the year 2022 Newton has estimated
Please help me solve this question.
PART A-15 marks Newton Cellular manufactures and sells the Top Line cellphone. For the year 2022 Newton has estimated the following: Contribution margin per phone $200 Variable cost per cell phone 5450 Antual fixed costs - Total S180,000 Net loss (S400) Required: a. Prepare a projected contribution type income statement based on the 2022 estimates Newton Cellular Projected Income Statement for year ending Dec 31.2022 a) Compute the break-even in units and in sales dollars for 2022 b) How many units is Newton planning to sell in 2022? c) How many additional units must be sold in 2022 to break-even? d) How many units need to be sold to earn $100.000 before tax? Part B - 15 marks Given: Variable costas a % of sales 70% Annual fixed costs - Total 5600,000 a) What is the contribution margin ratio? b) What is the break-even point in sales dollars? c) If the company is operating at a S100,000 loss what are the dollar sales? d) If the company is operating at a $100,000 profit what are the dollar sales Step by Step Solution
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