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please I need the answers! I need the answers even point and (b) the amount of pretax income when the level of cap production is
please I need the answers!
I need the answers
even point and (b) the amount of pretax income when the level of cap production is 70,000. 3. Use the formulas in the chapter to compute the a. Contribution margin ratio. b. Break-even point in terms of sales dollars. c. Amount of income at $250,000 of sales per month (ignore taxes). d. Amount of income at $600,000 of sales per month (ignore taxes). e. Dollars of sales needed to provide $60,000 of pretax income. Sport Caps Co. manufactures and sells caps for different sporting events. The fixed costs of operating the company are $150,000 per month, and variable costs are $5 per cap. The caps are sold for $8 per unit. The production capacity is 100,000 caps per month. Required 1. Use the formulas in the chapter to compute the following: a. Contribution margin per cap. b. Break-even point in terms of the number of caps produced and sold. c. Amount of income at 30,000 caps sold per month (ignore taxes). d. Amount of income at 85,000 caps sold per month (ignore taxes). e. Number of caps to be produced and sold to provide $60,000 of income (pretax). 2. Draw a CVP chart for the company, showing cap output on the horizontal axis. Identify (a) the breakeven point and (b) the amount of pretax income when the level of cap production is 70,000. 3. Use the formulas in the chapter to compute the a. Contribution margin ratio. b. Break-even point in terms of sales dollars. c. Amount of income at $250,000 of sales per month (ignore taxes). d. Amount of income at $600,000 of sales per month (ignore taxes). e. Dollars of sales needed to provide $60,000 of pretax income Step by Step Solution
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