Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a m Down Right

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed

Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a m Down Right Up 2,625,000 $ Left $ 1,777,500 1,422,000 116,000 106,400 224,000 150,000 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio $ 85,900 344,600 175,000 3.00 14.000 CA $ 79.00 $ 19.00 % 60 % % 50 % Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each compa to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) ( Fixed costs + Target profit )/ CM ratio Required sales in dollars Up ( + )/ % = II Down + % = Left % = + + Right % 11 Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? has the lowest breakeven point, primarily due to Right Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio Up $ 2,625,000 (a) (b) $ 344,600 175,000 $ 3.00 Company Down Left $(d) $ 1,777,500 224,000 1,422,000 150,000 116,000 $ (e) $ (9) $ 14,000 (h) $ (1) $ 79.00 $ 60% (1) $0) 106,400 (k) 85,900 (0) 19.00 (c) 50% 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point

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

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

9th International Edition

1266285997, 978-1266285998

More Books

Students also viewed these Accounting questions