Print 5. Crandall Company sells Mags with leam logos. Crandall has fixed costs of $503,200 per year plus variable costs of $4.80 per May. Each lag sells for $12.00 Read the requirements! Requirement 1. Use the equation approach to compute the number of flags Crandall must sell cach year to break even First, select the formula to compute the required sales in units to break even (1) (2) (3) Target profit Rearrange the formula you determined above and compute the required number of flags to break even The number of flags Crandall must sell each year to break even is Requirement 2. Use the contribution margin ratio approach to compute the dollar sales Crandall needs to earn $33,000 in operating income for 2018. (Round the contribution margin ratio to two decimal places.) Begin by showing the formuls and then entering the amounts to calculate the required sales dollars to earn $33,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used CM = contribution margin.) (4) + (6) = Required sales in dollars Requirement 3. Prepare Crandall's contribution margin income statement for the year ended December 31, 2018 for sales of 70,000 flags (Round your final answers up to the next whole number ) (Use parentheses or a minus sign for an operating loss) Crandall Company Contribution Margin Income Statement Year Ended December 31, 2018 (7) (8) (9) (10) Operating Income (Loss) Requirement 4. The company is considering an expansion that will increase fixed costs by 21% and variable costs by 80.60 per flag. Compute the new breakeven point in units and in dollars. Should Crandall undertake the expansion? Give your reasoning (Round your final answers up to the next whole number) (Use the equation approach ) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. Activate Windows Go to Settings to activate Windows. (11) (13) Target profit Poarranno tha formu dotarminoritarimutatherorior rumhor of flare in hral van nor the avancinn nlan Requirement 4. The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0 60 por Mag. Compute the new broakovon point in unils and in dollars. Should Crandall undertake the expansion? Give your roas Print (Round your final answers up to the next whole number ) (Use the equation approach) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. (11) (12) (13) Target profit Rearrange the formula you delermined above and compule the required number of flags to break even under the expansion plan Under the expansion plan, the breakeven point in units would be Under the expansion plan, the breakeven point in dollars would be s Should Crandall undertake the expansion? Give your reasoning Crandall should only undertake the expansion if expected profits from the expansion (14). the expected costs. 1: Requirements 1. Use the equation approach to compute the number of flags Crandall must sell each year to break even 2. Use the contribution margin ratio approach to compute the dollar sales Crandall needs to earn $33.000 in operating income for 2018. (Round the contribution margin ratio to two decimal places. 3. Prepare Crandall's contribution margin income statement for the year ended December 31, 2018, for sales of 70,000 fags (Round your final answers up to the next whole number) 4. The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0.60 per tiag. Compute the new breakeven point in units and in dollars. Should Crandall undertake the expansion? Give your reasoning (Round your final answers up to the next whole number) (2) O (3) O Net sales revenue per unit Contribution margin per unit Variable costs O Fixed costs Net sales revenue Net sales revenue per unit Variable costs Contribution margin per unit Fixed costs Net sales revenue Net sales revenue per unit Contribution margin per unit Variable costs Fixed costs Net sales revenue Variable costs Target profit Variable costs O CM per unit OCM ratio O Fixed costs (5) O CM per unit OCM ratio Sales price (6) O OCM per unit OCM ratio Fixed costs O Gross Profit Contribution Margin Sales Revenue O Cost of Goods Sold O Variable Costs Fixed Costs (8) O O Gross Profit O Contribution Margin O Sales Revenue O Cost of Goods Sold O Variable Costs O Fixed Costs (9) O O Gross Profit Contribution Margin O Sales Revenue O Cost of Goods Sold O Variable Costs Fixed Costs (10) O O Gross Profit Contribution Margin Sales Revenue Cost of Goods Sold O Variable costs O Fixed Costs Net sales revenue per unit Variable costs (11) O Contribution margin per unit O Fixed costs Net sales revenue Activate Windows Go to Settings to activate Windows
