Required information Problem 3-23A Comprehensive CVP analysis LO 3-3, 3-4, 3-5 [The following information applies to the questions displayed below.] Benson Company makes and sells products with variable costs of $41 each. Benson incurs annual fixed costs of $27,300. The current sales price is $62. Problem 3-23A Part a Required The following requirements are interdependent. For example, the $6,300 desired profit introduced in Requirement calso applies to subsequent requirements. Likewise, the $53 sales price introduced in Requirement d applies to the subsequent requirements. a. Determine the contribution margin per unit. Contribution margin per s 21 unit b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required B1 Required B2 Determine the break-even point in units and in dollars. Break-even point in units Break-even point in dollars 1,300 80,600 $ b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required B1 Required B2 Prepare an income statement using the contribution margin format. ANY BENSON COMPANY Income Statement Sales $ Variable cost Contribution margin | $ Fixed cost 80,600 53,300 27,300 27,300 Net income $ c. Suppose that Benson desires to earn a $6,300 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Suppose that Benson desires to earn a $6,300 profit. Determine the sales volume in units and dollars required to earn the desired profit. Sales volume in units Sales volume in dollars 1,600 99,200 $ c. Suppose that Benson desires to earn a $6,300 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required ci Required C2 Suppose that Benson desires to earn a $6,300 profit. Prepare an income statement using the contribution margin format. BENSON COMPANY Income Statement Sales $ Variable cost Contribution margin $ Fixed cost 99,200 65,600 33,600 27,300 Net income 6,300 d. If the sales price drops to $53 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required Di Required D2 If the sales price drops to $53 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Sales volume in units Sales volume in dollars Required D1 Required D2 If the sales price drops to $53 per unit, prepare an income statement using the contribution margin format. BENSON COMPANY Income Statement e. If fixed costs drop to $20,100, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Required E1 Required E2 If fixed costs drop to $20,100, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Sales volume in units Sales volume in dollars Required E1 Required E2 > Required E1 Required E2 If fixed costs drop to $20,100, prepare an income statement using the contribution margin format. BENSON COMPANY Income Statement Required F1 Required F2 If variable cost rises to $33 per unit, prepare an income statement using the contribution margin format. BENSON COMPANY Income Statement
