Task 1) Create a contribution margin income statement from the income statement operating results on WS1. Use the following information to convert the information from the income statement on Wsi to its variable and fixed costs components for the contribution margin income statement: - DM & DL are variable costs - 40% of MOH is variable - 10% of S & A costs are variable Wedgewood Candle Co. Container Candle Division Contribution Margin Income Statement Results for Quarter 3 $ 2,596,750 $ $ $ $ 630,700 202,300 431,375 925,000 Revenues Variable Costs DM DL MOH Selling and Admin Total Variable costs Contribution Margin Fixed Costs MOH Selling & Admin Total Fixed Costs Division Operating Income $ 1,098,050 $ 1,098,050 $ 1,498,700 $ 1,498,700 $ $ 431,375 925,000 $ 1,091,325 $ 1,091,325 $ 407,375$ 407,375 Task 2) Based upon your contribution margin income statement above, compute the following answers. (You must display computations for full credit.) (Show your computations here) Selling Price per Unit (Show your computations here) Variable Cost Per Unit 0 0 Contribution Margin Per Unit (Show your computations here) Contribution Margin Ratio (percentage) (Show your computations here) Breakeven Point in Units (Show your computations here) Breakeven Point in Sales (using the contribution margin ratio method) (Show your computations here) Margin of Safety (in dollars) Task 3) Complete the following CVP analysis using quantity of units produced in 50,000 unit increments; beginning at 0 units and ending at 500,000 units Quantity Total Sales Total Variable Costs Total Fixed Costs Total Costs Net Income (Loss) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Task 4) Create a CVP breakeven chart (based upon quantity of units produced/sold and related dollar value from Task 3 above. The graph should depict the following: CAPI Total Revenue Line Total Cost Line Fixed Cost Line Area of Loss Area of Profit Breakeven Point Partial example Task 1) Create a contribution margin income statement from the income statement operating results on WS1. Use the following information to convert the information from the income statement on Wsi to its variable and fixed costs components for the contribution margin income statement: - DM & DL are variable costs - 40% of MOH is variable - 10% of S & A costs are variable Wedgewood Candle Co. Container Candle Division Contribution Margin Income Statement Results for Quarter 3 $ 2,596,750 $ $ $ $ 630,700 202,300 431,375 925,000 Revenues Variable Costs DM DL MOH Selling and Admin Total Variable costs Contribution Margin Fixed Costs MOH Selling & Admin Total Fixed Costs Division Operating Income $ 1,098,050 $ 1,098,050 $ 1,498,700 $ 1,498,700 $ $ 431,375 925,000 $ 1,091,325 $ 1,091,325 $ 407,375$ 407,375 Task 2) Based upon your contribution margin income statement above, compute the following answers. (You must display computations for full credit.) (Show your computations here) Selling Price per Unit (Show your computations here) Variable Cost Per Unit 0 0 Contribution Margin Per Unit (Show your computations here) Contribution Margin Ratio (percentage) (Show your computations here) Breakeven Point in Units (Show your computations here) Breakeven Point in Sales (using the contribution margin ratio method) (Show your computations here) Margin of Safety (in dollars) Task 3) Complete the following CVP analysis using quantity of units produced in 50,000 unit increments; beginning at 0 units and ending at 500,000 units Quantity Total Sales Total Variable Costs Total Fixed Costs Total Costs Net Income (Loss) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 Task 4) Create a CVP breakeven chart (based upon quantity of units produced/sold and related dollar value from Task 3 above. The graph should depict the following: CAPI Total Revenue Line Total Cost Line Fixed Cost Line Area of Loss Area of Profit Breakeven Point Partial example
