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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% fixed
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 factor
the questions that has to be answer its question 4,chapter 4 ,i just added those tables because someone say they needed
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 Number of units sold data needed to answer the question
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