The budgets of four companies yield the following information: LOADING... (Click the icon to view the budget information for the four companies.)Requirements

1.	Fill in the blanks for each company.
2.	Compute break-even, in sales dollars, for each company. Which company has the lowest break-even point in sales dollars? What causes the low break-even point?

Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.)

		Q
	Target sales. . . . . . . . . . . . . . . . . .	$720,000
	Variable expenses. . . . . . . . . . . . .	216,000
	Fixed expenses. . . . . . . . . . . . . . .
	Operating income (loss). . . . . . . .	$154,000
	Units sold. . . . . . . . . . . . . . . . . . . .
	Contribution margin per unit. . . .	$6.00
	Contribution margin ratio. . . . . . .

R

$400,000

156,000

125,000

0.65

S

$190,000

90,000

12,000

$9.50

T

270,000

$140,000

15,750

$40.00

Requirement 2. Compute break-even, in sales dollars, for each company. Which company has the lowest break-even point in sales dollars? What causes the low break-even point? Q CompanyR CompanyS CompanyT Companyhas the lowest break-even point, primarily due to its high fixed costsits low fixed costsits high sales price.

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