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Round Rock, Inc. manufactures and sells a single product. Cost data are given below: Units Sold 20,000 Sales price per unit $ 20.00 Cost
Round Rock, Inc. manufactures and sells a single product. Cost data are given below: Units Sold 20,000 Sales price per unit $ 20.00 Cost of Goods sold: Variable cost per unit Fixed Cost $ 8.00 $25,000 Selling Expenses: Variable cost per unit Fixed Selling $ 2.00 $ 30,000 Fixed Selling Expenses $30,000 Administrative Expenses: Variable cost per unit Fixed Administrative Expenses $ 2.00 $ 25,000 1. Prepare the Contribution Format Income Statement. Round Rock, Inc. Contribution Format Income Statement Units Sold: 20.000 Round Rock, Inc. Contribution Format Income Statement Units Sold: 20,000 Sales Less: Select an answer Select an answer Less: Fixed Expenses: Unit Cost Total Cost $400000 $ 20.00 Percent 100 *% % % Less: Fixed Expenses: Cost of Goods Sold $ Selling Expenses 30000 Administrative Expenses 25000 Select an answer $80000 Based on the above Contribution Income Statement for Round Rock Inc calculate 2. Based on the above Contribution Income Statement for Round Rock, Inc. calculate the following: 1. Breakeven in units 2. Breakeven in Sales dollars $ 10000 o Units 3. Units needed to achieve a target profit of $ 120,000 25000 Units 4. Sales dollars needed to achieve a target profit of $ 160,000 $ 98.75 5. Margin of Safety 6. Margin of Safety Percentage $ % 7. Operating Leverage 8. If sales increased by 20% what percentage would operating income increase. 2 40 %
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Step: 1
Based on the provided data to calculate the different metrics we should first calculate the contribution margin per unit which is sales price per unit ...Get Instant Access to Expert-Tailored Solutions
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