Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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 T $ Company Q R S 828,125 $ 450,000 $ 146,250 298,125 - 153,000 82,000 230,000 $ $ Target sales................$ Variable expenses .......... Fixed expenses.............- Operating income (loss) $ 270,000 140,000 Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.) Q R S Target sales..................$ 828,125 $ 450,000 $ 146,250 Variable expenses..... . 298,125 270,000 158 00 . Fixed expenses................. 82.000 Operating income (loss).... $ 230,000 $ 140,000 Units sold........................ 120.000 13,000 15,750 Contribution margin per unit .... $ 6.25 $ 9.00 $ 40.00 Contribution margin ratio ....... 0.60 Units sold ..... . Contribution margin per unit .. $ Contribution margin ratio ..... 120,000 $ 0.60 13,000 9.00 $ 15,750 40.00 6.25 Print Done 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 a $0 balance, make sure to enter "0" in the appropriate cell.) = Breakeven sales R SIL Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Evolution Of Audit Thought And Practice

Authors: T. A. Lee

1st Edition

0367502097, 978-0367502096

More Books

Students also viewed these Accounting questions