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Question 3 (Chapter 4): Using Brookcette Porks 2019 income statement, create a contribution income statement. Use the following percentages to allocate variable and fixed expenses.

Question 3 (Chapter 4): Using Brookcette Porks 2019 income statement, create a contribution income statement. Use the following percentages to allocate variable and fixed expenses.

  • COGS 100% variable
  • Marketing 80% variable, 20% fixed
  • Equipment 100% fixed
  • Supplies 60% variable, 40% fixed
  • Salary 70% variable, 30% fixedimage text in transcribed

    Question 4 (Chapter 4): Using the 2019 contribution margin income statement from the previous question, calculate the following.

  • Contribution margin ratio
  • Break-even in sales
  • Break-even in units
  • Margin of safety in sales
  • Margin of safety in units
  • Operating leverage factorimage text in transcribedimage text in transcribed
the questions that has to be answer its question 4,chapter 4 ,i just added those tables because someone say they needed
Number of units sold data needed to answer the question
Brookcette pork Contribution margin Income statement For the year ended December 31, 2019 Sales $9,425 Variable cost ($5,355) Contribution margin $4,070 Fixed cost ($620) Operating income $3,450 u Working notes: Variable costs Fixed costs COGS $4,625 COGS fully variable Marketing $50 * 80% = $40 Marketing $50 * 20% = $10 Equipment fully fixed Equipment $250 Supplies $450 * 60% = $270 Supplies $450 * 40% = $180 Salary $600 * 70% = $420 Salary $600 * 30% = $180 Total $5,355 Total $620 Yearly Hog volume 10 20 40 Total fixed costs $ 1,000 $ 1,000 $ 1,000 Total variable costs (Yearly Hog volume * 320) | $ 3,200 $ 6,400 $ 12,800 Total costs $ 4,200 $ 7,400 $ 13,800 Fixed cost per hog (1000/ Yearly Hog volume) $ 100 $ 50 $ 25 Variable cost per hog $ 320 $ 320$ 320 Average cost per hog [A] $ 420 $ 370 $ 345 Selling price [B] $ 600 $ 600 $ 600 Average profit per hog (B - A] $ 180 $ 230$ 255 Total Feed Cost #of Hogs 325 5 15 Month April May June July August 575 500 12 375 7 300 4

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