Question
Question 1 a) Xaviers Yellow Zippers Corporation (XYZ Corp) sold 2,200 zippers in 2020 for $6 apiece. Xavier buys the zippers for $2 each and
Question 1 a) Xaviers Yellow Zippers Corporation (XYZ Corp) sold 2,200 zippers in 2020 for $6 apiece. Xavier buys the zippers for $2 each and it costs $1 to paint each zipper yellow and add a snazzy logo. Xavier paid $200 a month to rent a sales booth at his local outdoor market, along with a sales commission of $1 per zipper sold (his sister made all the sales on commission). Complete XYZ Corps contribution income statement. b) Xavier is wondering what his break-even point is. Calculate both the break-even revenue and sales volume. c) Next year, Xavier is planning to sell 3,000 zippers. What will be his margin of safety? d) Prepare a Cost-Volume-Profit graph for XYZ Corp. Label the axes, lines, loss and profit areas, and break-even point clearly on your graph.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started