Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question - 3: Junior Bodway, Inc., has provided the following budgeted data: [Marks: 10) Sales ............ 10,000 units Selling price $60 per unit Variable expense

image text in transcribed

Question - 3: Junior Bodway, Inc., has provided the following budgeted data: [Marks: 10) Sales ............ 10,000 units Selling price $60 per unit Variable expense $40 per unit Fixed expense $2,00,000 Requirements: a) Calculate CMR and VCR. b) Prepare a Contribution formal Income Statement. c) What is the company's break-even point in unit and sales dollars? d) What is the CM at Break even point? e) Calculate the Margin of Safety (MS) and MSR. f) Calculate the Expected Sales in unit for target profit of $2,00,000. g) If the company sales increased by $ 1,00,000 and Advertising expenditure is $ 10,000 then how much net operating income will be increased? h) Calculate the DOL and if sales increased by 20% then how much% of profit will be increased

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

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

Students also viewed these Accounting questions