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Please solve this question as soon as possible with an hour and a half max (and show all the calculations to get a like from
Please solve this question as soon as possible with an hour and a half max (and show all the calculations to get a like from me & my friend too) Thanks!!
SUBMIT YOUR WORK for this question. You must input into Connect your answers for at least part A of this question. Blue Inc produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows The company produced and sold 125,000 units of product during the month. There were no beginning or ending inventories. Required: Part A) Given the present situation, compute: A1 The break-even sales in units (round up). A2 The break-even sales in dollars. A3 The sales in units that would be required to produce operating income of $150,000. A4 Compute the degree of operating leverage based on last months sales. If sales were to increase by 8% next month, using operating leverage what would be the new income? Part B) Management is considering using a higer-quality component in the product currently being produced. This would result in variable costs increasing by $0.55 per unit, but fixed quality inspection costs would decline by $35,000. Using this information: B1 Prepare a revised contribution format income statement under the proposal (provide total, per unit and percentage) B2 Under the new proposed plan, compute the break-even point in units (round up) B3 Under the new proposed plan, compute the break-even point in dollars. B4Should the company choose to implement the new component or maintain its current situation? Explain
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