Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The budgets of four companies yield the following information: Data table (Click the icon to view the budget information for the four companies.) Requirements
The budgets of four companies yield the following information: Data table (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? Company R S Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.) Target sales... Variable expenses Fixed expenses $ 687,500 $ 400,000 $ 146,250 192,500 270,000 $ 156,000 $ 82,000 Target sales. Variable expenses. Fixed expenses 156,000 82,000 90,000 $ 140,000 Operating income (loss). Units sold..... 125,000 13,000 15,750 Contribution margin per unit 6.60 $ 9.00 $ 40.00 Contribution margin ratio 0.65 Q R S T 687,500 $ 400,000 $ 146,250 192,500 270,000 $ Operating income (loss) ....... $ Units sold... 90,000 $ $ 140,000 125,000 13,000 15,750 Contribution margin per unit ... $ Contribution margin ratio....... 6.60 9.00 $ 40.00 0.65 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.) Fixed expenses Q ( + R + + Operating income )Contribution margin ratio = Breakeven sales 0+ 0 )+ 0 ) + 0 Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? has the lowest breakeven point, primarily due to
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