Principles of Managerial Accounting-Summer 2019 Mahita B& 8/14/19 1:12 A Homework: Chapter 7 Homework Sm core: 0.58 of 1 pt 4 of 6 (6 complete)" HW Score: 50.76 % , 3.05 of 6 E7-33A (similar to) Question Help Zeke Medical Supply is a retailer of home medical equipment. Last year, Zeke's sales revenues totaled $6,900,000. Total expenses were $2,500,000. Of this amount, approximately $1.380,000 were variable, while tm remainder were foxed. Since Zeke's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units Read the requirements Requirement 1. What is Zeke's current operating income? Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income 4,400,000 The operating income is $ Requirement 2. What is Zeke's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Sales revenue Contribution margin raio Contribution margin (Enter the ratio as a whole percent.) Choose from any list or enter any number in the input fields and then click Check Answer Check Answer Clear Al The operating income is $ 4,400,000 Requirement 2. What is Zeke's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenUe Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 80%. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighte- Begin by identifying the formula to compute the breakeven point in sales dollars Choose from any list or enter any number in the input fields and then click Check Answer. LURD BUAl SUBBY is a retailer of home medical equipment. Last year, Zeke's sales revenues totaled $6,900,000. Total expenses were $2.500,000. Of this amount, approximately $1,380,000 were vas remainder were fixed. Since Zeke's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dolars rather than units. Read the requirements The contribution margin ratio is 80%. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. Fixed expenses Operating income ) Contribution margin ratio Breakeven sales in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is $ 1,400,000 Requirement 4. Zeke's top management is deciding whether to embark on a $260,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 15% as a result of Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income? by % , which If Zeke embarks on this advertising campaign, sales revenue and variable costs will Choose from any list or enter any number in the input fields and then click Check Answer. Check A E7-33A (similar to) Zeke Medical Supply is a retailer of home medical equipment. Last year, Zeke's sales revenues totaled $6,900,000. Total expenses were $2,500,000. Of this amount, approximately $1.380,000 weres remainder were fixed. Since Zeke's offers thousands of different products, its managers prefer to caloulate the breakeven point in terms of sales dolars rather than units Read the requirements. Begin by identifying the formula to compute the breakeven point in sales dollars. Fixed expenses Operating income Contribution margin ratio Breakeven sales in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is $ 1,400,000 Requirement 4. Zeke's top management is deciding whether to embark on a $260,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 15 % as a resu Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income? % , which If Zeke embarks on this advertising campaign, sales revenue and variable costs will % However, fixed costs wil by will cause the contribution margin to by by $ due to the advertising. Choose from any list or enter any number in the input fields and then click Check Answer. Chec Clear All