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Please help to solve. thanks. From the existing level of sales, which firm's operating income (IB) is more sensitive to changes in sales volume? Show
Please help to solve. thanks.
From the existing level of sales, which firm's operating income (IB) is more sensitive to changes in sales volume? Show calculations and round your answers to 2 decimal places. 4) Hightech Company recently developed the technology necessary to produce a low-end, a medium-end, and high-end computer memory chip for heart monitoring healthcare equipment. Budgeted fixed costs for the manufacture of all three products total $4,250,000. Budgeted sales, by! product and in total, for the coming year were as follows: Economy Standard High Amount Percent Amount Percent Amount Percent Sales $1,750,000 100% $4,000,000 100% $2,500,00 100% Variable costs $1,207,500 69%) $1,000,000 25% $1,250,00 50% Contribution $542,500 31% $3,000,000 75% $1,250,00 50% Actual sales for the year were as follows: DE $e A utowe U LLUT-YHU5.33.0s-east-1.amazonaws.com/5af494bf200ea/1077689?response content disposition=inline%3B%20filename%2A%3DUTF8272 Actual sales for the year were as follows: Economy Standard High Total sales $4,000,000 $2,250,000 $2,000,000 $8,250,000 Required: 1. Prepare a contribution income statement for the year based on actual sales data (but budgeted cos data, for both variable and fixed costs). 2. Compare the breakeven sales dollars for the year based on both budgeted sales and on actual sale: assuming that the sales mix remains constant in terms of sales dollars. (Round contribution margin ratios, in all calculations, to three decimal places. Round answer in dollars up, to the nearest whole number.) 3. The company president knows that total actual sales were $8,250,000 for the year, the same as budgeted. Because she had seen the budgeted income statement, she was expecting a nice profit from producing the memory chips. Explain to her what happened. 5) The non-profit University Hospitaliis contemplating nunchasing a new blood ons machine sta costStep by Step Solution
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