Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help thank you Break-Even in Units and Sales Dollars, Margin of Safety Aubrey Company produces a single product. Last year's income statement is as
please help thank you
Break-Even in Units and Sales Dollars, Margin of Safety Aubrey Company produces a single product. Last year's income statement is as follows: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. 2. What was the margin of safety in dollars for the Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Aubrey Company is considering an investment in new technology that will increase fixed costs by $205,200 per year, but will lower yariable costs to so percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming the company makes this investment. Round all amounts to the nearest dollar. 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. 2. What was the margin of safety in dollars for the Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Aubrey Company is considering an investment in new technology that will increase fored costs by $205,200 per veat, but wil lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted income statement assuming the company makes this imestment. Round all amounts to the nearest dollar. What is the new break-even point in units, assuming the investment is made? In your computations, round the unit contribution margin to the nearest cest. Round your final answer to the nearest whole unit. units Step 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