Question
Show a profit-volume graph #of Return Billing RateSelling PriceVariable CostWeighted Variable Cost Weighted Contribution Standard1750$50$87,500-30-52,500$35,000 Multiform500$125$62,500-75-37,500$25,000 Complex250$250$62,500-150-37,500 $25,000 Total$212,500-127,500$85,000 Contribution = selling price - Variable
Show a profit-volume graph
#of Return Billing RateSelling PriceVariable CostWeighted Variable Cost Weighted Contribution
Standard1750$50$87,500-30-52,500$35,000
Multiform500$125$62,500-75-37,500$25,000
Complex250$250$62,500-150-37,500 $25,000
Total$212,500-127,500$85,000
Contribution = selling price - Variable cost
Contribution Ration = Contribution / Sales = $850,000/$212,50040%
Break-Even Sales Volume = fixed cost/contribution ratio = $50 ,000/40%$125,000
Margin of Safety = Actual Sales = Break-Even Sales = $212,500 - $125,000$87,500
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Cambridge IGCSE And O Level Accounting Coursebook
Authors: Catherine Coucom
2nd Edition
1316502775, 978-1316502778
