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Table 3, please. B.E. NOW INDUSTRIES-Cost Cover Division Variable Costing Components Sales price (per unit) Variable costs (per unit) Fixed costs Desired pretax profit Tax

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Table 3, please.

B.E. NOW INDUSTRIES-Cost Cover Division Variable Costing Components Sales price (per unit) Variable costs (per unit) Fixed costs Desired pretax profit Tax rate The costing manager for B.E. Now Industries is tasked with forecasting expected breakeven and profitability levels for its Cost Cover Division. Although the expectation is that the division will be profitable next year, the fear is that continued slow growth in the local economy will cause the division to struggle to reach breakeven. As part of the forecast, the manager must be prepared to explain the impact on various cost components of changes in certain assumptions. . Using the information included within the exhibit, complete the tables below for B.E. Now Industries. For Table 1, calculate the required amounts identified in column A and enter your associated response in units or dollars in column B. Table 1: Actuals $90 $63 For Table 2, determine the impact of the change identified in column A and enter the impact in column B. 1 Calculation $810,000 $135,000 35% 2 Breakeven point (in units) A 3 Breakeven point (in dollars) B Amount 30,000 $2,700,000 4 Units needed to earn desired profit 5 Sales dollars needed for desired profit Table 2: 1 Change A A 2 Impact on the contribution margin if fixed costs increase by $40,000 Table 3 Impact on the contribution margin ratio if per unit sales and variable costs both decrease by $10 5 Impact on breakeven in units if tax rate decreases to 30 percent Desired pretax profit Total variable costs B 35,000 $3,150,000 4 Impact on total variable costs if the desired pretax profit increases by $50,000 $135,000 In table 2 row 4, calculate the total variable costs when the desired pretax profit amount has different values. Fill the table 3 below. $185,000 B Impact No Impact 27/80 = 0.3375 27/90 = 0.3 No Impact No Impact

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