Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The budgets of four companies yield the following information: BE: (Click the icon to view the budget information for the four companies.) Read the requirements.
The budgets of four companies yield the following information: BE: (Click the icon to view the budget information for the four companies.) Read the requirements. Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus sign or parentheses to enter an operating loss.) Sunny Rainy Cloudy Windy Net Sales Revenue $ 1,900,000 $ 288,000 144,000 250,000 66,000 184,000 99,000 $ 404,000 $ 78,000 Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio 12,000 200,000 3.80 % C $ 72.00 $ 15.00 50 % 80 % % Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. (Complete all answer boxes. Round the breakeven pointthe required sales in dollarsup to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.) + = Required sales in dollars Sunny + % % = = Rainy + Cloudy = + Windy + Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? V has the lowest breakeven point, primarily due to Sunny Company Rainy Company Cloudy Company Windy Company its high fixed costs its high sales price its low fixed costs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started