Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 is very important. please only answer if you absolutely are sure, i really need help with this question Problem 8 - 8 Performing

Question 2 is very important. please only answer if you absolutely are sure, i really need help with this question

image text in transcribedimage text in transcribed
Problem 8 - 8 Performing a Comprehensive CVP Analysis ( LO2 - CC 5, 6) The Central Valley Company is a manufacturing firm that produces and sells a single product . The company's revenues and expenses for the last four months are given below . Central Valley Company Comparative Income Statement March April May JUNE JOB ' L Sales in units 6, 200 9, 400 Sales revenue $783, 900 $ 725, 400 $:912, 600 $ 1, 095, 8:00 Less : Cost of goods sold $ 10, 0.50 391, 716 $74, 5.52 560, 898 Gross margin $3.67, 850 $3.3.3, 684 $ 438, 048 $ 538, 902 Less : Operating EXPENSES Shipping Expense* $ 64,900 $ 52, 600 $ 68, 400 52, 500 Advertising Expense 95, 500 $15, 500 95, 500 $15, 500 Salaries and commissions 165, 900 13:4, 500 170,000 165, 000 Insurance expense* 17, 500 17, 500 17, 500 17, 500 Amortization EXPENSE 5.0, 500 50, 500 50, 500 50, 500 Total operating expenses $3.94, 300 $350, 600 $401, 900 $ 391, 000 Net income* $ 126, 450) $ 1 16, 916) $ 36, 140 $ 147, 902Required : 1 . Management is concerned about the losses experienced during the spring and would like to know more* about the cost behaviour . Develop a cost Equation for each of the costs . ( Do not round intermediate* calculations . Round " Per Unit " answers to 2 decimal places .! Cost of goods sold $ 63,9201 + 52.67| per unit Shipping = $ 23, 4541 + 3.09| per unit Salaries & commission = $ 75, 418| + 9.53| per unit 2. Assume that fixed costs are incurred uniformly throughout the year . Compute the annual break - even sales , and the profit if $6, 500 units are sold during the year . ( Round " Break- even sales " answer to nearest whole number . ! Break- even sales units Annual profit ( $6, 500 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Advanced Accounting

Authors: Joe Hoyle

4th Edition

78136636, 978-0078136634

More Books

Students also viewed these Accounting questions