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Solutions for number 4,5 and 6 only. This is a complete question from instructor. Cascade Company estimated the following variable and fixed cost for the
Solutions for number 4,5 and 6 only.
This is a complete question from instructor.
Cascade Company estimated the following variable and fixed cost for the only product it produces. Required: 1. Prepare an Estimated Contribution Margin Income Statement for the year ended Dec. 31,2021. ( Use one category for variable cost and one category for fixed cost). (Assume that 6,000 units are to be produced and sold and that the relevent range is in between 0 and 10,000 units). Assume the estimated sales price will be $500 per unit. 2. Compute the break even point in units and sales dollars. (Show your work on the attached work paper). 3. Compute he break even point in units and sales dollars assuming the following facts below: - The sales staff will now pay all of the advertising cost and their commission will be increased to 10% of every sales dollar. - The sales staff will have their base salaries decrease by $100,000 in exchange for their increased sales commission. (Show your work on the attached work paper). 4. What is the number of units and sales dollars required in order for the income to be the same under both sets of facts? (Give your explanation on the attached work paper). 5. Which alternative would you select? Why? Assume that Cascade has never sold less than 5,000 units in their history. (Give your explanation on the attached work paper). 6. Referring to the original facts; what is the required sales in units and dollars required to generate a 12% Operating Income as a \% of Sales. (Whow your work on the attached work paper). 7. Submit one work paper per group. 8. Each student should submit a Team Asessment evaluating their work and their fellow group members work)Step by Step Solution
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