Score: 0 of 3 pts 3 of 17 complete) HW Score: 73 289, 1099 of 15 pts Question Help Instructor-created question The Sock Company buys hiking socks for $5 per pair and sells them for $10 Management budgets monthly fixed costs of 10,000 for sales volumes between 0 and 12,000 pairs of socks Read the team Requirement 1. Une both the equation approach and the contribution marginapproach to compute the company's monthly breakeven point in units HINTStart with Net sales revenu Fast, select the formula to compute the company's monthly brookeven point in units using the equation approach Nel sales revenue Variable costs Food costs Target profit 2500 Rearrange the form you determined above and compute the breakeven point in uns The number of units needed to break even is Now select the labels and enter the amounts to find the breakon point in units using the contribution margin approach HINT Breaking even implies a target profe of O. (Ente ao for any 2000 amounts. Abbreviation used. CM contribution matgin Togetprom CM perut Regited sales in units 12000 3000 Requirement. Use the contribution marginio approach to compute the braven point in sales on MINT Braking event inplics a target profit of Click the graph choose a look in the palete and follow the cons to create your graph All parts showing Clear All Ches dles VoIU i Requirements ach un any aria ar 1. Use both the equation approach and the contribution margin approach to compute the company's monthly breakeven point in units. 2. Use the contribution margin ratio approach to compute the breakeven point in sales dollars. 3. Compute the monthly sales level (in units) required to earn a target operating income of $6,000. Use either the equation approach or the contribution margin approach 4. Prepare a graph of The Sock Company's CVP relationships. Draw the sales revenue line, the fixed cost line, and the total cost line. Label the axes, the breakeven point, the operating income area, and the operating loss area. to con impl Print Done mrati arget Instructor-created question Question Help The Sock Company buys hiding socks for $5 per pair and tells them for $10 Management budgets monthly fixed costs of $10,000 for sales volumes between 0 and 12,000 pairs of sock Read the countmana 12000 3000 CM ratio 40 D Requirement 2. Use the contribution margin ratio approach to compute the broakoven point in salos dollars. HINT Booking even implios a target profit of Begin by selecting the formula then enter the amounts and compute the breakeven point in sales dollaro. (Enter a "" for any xero amounts) Food costs Target profit Required sales in dollars 12000 30000 Requirement 3. Compute the monthly nabon wet (in units) required to cam a target operating income of $6,000 Une either the equation approach or the contribution margin approach The number of units required to own a target operating income of 6.000 6 4000 Ahat you continue the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step) Requirement 4. Prepare a graph of The Sock Company's CVP relationship Draw the sales revenue line, the fired con line, and the total cost line Label the aves the brakeven point the operating income oma, and the operating loss area Read the CAROL Requirement. Poupare a graph of The Sock Company's CVP relationship Draw the sales revenue line, the fixed cent tine, and the total contine Label the see, the broakoven point. the operating income area and the operating loss area Bogin by letting and being the bookeven point, and plotting and belog the fines for sales revenue foxed costs, and total costs. When plotting eachine, use the point where the sale volume in units is equal to 2010, and where the sales volume in uns is equal to the beloven point (Enlarge the graph to medium site and use the point tool and line fool buttons displayed below to draw the graph Clothe" to select a label for the breakeven point and for each of the lines) 140.000 6. 100 US 11.00 31000 Click the graph, choose a look in me palette and folow the instructions to create your graph 35 000 1,000 2,000 5,000 4,000 5,000 Chris Click to enlarge graph Now select the graph that has the correct shaded areas and labels for the operating loss area and the operating incomo area (Enlarge nach graph before selecting your artwer) OA . Q a Q . OD Oper LU Single ) Cick the crap choose a tool in the paletter and totlow the instructions to create your graph All parts showing Clear All CK AWE Previous Next