Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The budgets of four companies yield the following information: (Click the icon to view the budget information for the four companies.) Requirements 1. Fill in
The budgets of four companies yield the following information: (Click the icon to view the budget information for the four companies.) Requirements 1. Fill in the blanks for each company. 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? 298,125 300,000 230,000 180,000 153.000 117,000 29,250 82,000 35,000 $ 270,000 490.000 140,000 Variable expenses................ Fixed expenses.................. Operating income (loss) Units sold...................... Contribution margin per unit .... $ Contribution margin ratio ....... 84,800 6.25 0.64 120,000 2.25 $ 0.60 13,000 9.00 $ 15,750 40.00 0.7 0.8 Company Requirement 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by determining the formula, then compute the break even sales for each company one at a time. (Complete all answer boxes. For amounts with Data Table Fixed expenses + Contribution margin / Units sold - Breakeven sales ( 300000 + 6.25 ) 48000 RD SL Target sales................S Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Variable expenses .......... Fixed expenses............-- has the lowest breakeven point, primarily due to S Operating Income (loss) Choose from any list or enter any number in the input fields and then continue to the next question. Units sold .. . Contribution margin per unit..S 146.250 B28,125 $ 450,000 $ 298,125 153,000 230,000 S 270,000 $2,000 $ $ 140,000 120,000 $$ 13,000 9.00 $ 15,750 40.00 6.25 Contributinn marnin ratin non
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