Question
The budgets of four companies yield the following information: Company Nantz Smith Eastman Whitman Net Sales Revenue $2,340,000 $ (d) $1,500,000 $ (j) Variable Costs
The budgets of four companies yield the following information:
|
| Company | |||
|---|---|---|---|---|
|
| Nantz | Smith | Eastman | Whitman |
| Net Sales Revenue | $2,340,000 | $ (d) | $1,500,000 | $ (j) |
| Variable Costs | (a) | 65,000 | 1,200,000 | 185,250 |
| Fixed Costs | (b) | 224,000 | 114,000 | (k) |
| Operating Income (Loss) | $288,000 | $ (e) | $ (g) | $108,300 |
| Units Sold | 120,000 | 13,000 | (h) | (l) |
| Contribution Margin per Unit | $3.90 | $ (f) | $75.00 | $19.00 |
| Contribution Margin Ratio | (c) | 80% | (i) | 40% |
Requirements
| 1. | Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) |
| 2. | Which company has the lowest breakeven point in sales dollars? |
| 3. | What causes the low breakeven point? |
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Management Control Systems
Authors: Kenneth Merchant, Wim Van Der Stede
5th Edition
1292444134, 9781292444130
