The budgets of four companies yield the following information:

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(Click the icon to view the budget information for the four companies.)Read the requirements

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Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus sign or parentheses to enter an operating loss.)

	Up
Net Sales Revenue	$992,000
Variable Costs
Fixed Costs
Operating Income (Loss)	$42,500
Units Sold	155,000
Contribution Margin per Unit	$3.20
Contribution Margin Ratio		%

Down
144,000
144,000
9,000
60	%

Left
$1,242,500
994,000
114,000
$71.00
	%

Right
208,000
$44,400
$10.00
20	%

Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. (Complete all answer boxes. Round the breakeven

pointlong dashthe

required sales in

dollarslong dashup

to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM = contribution margin.)

(

+

) /

=

Required sales in dollars

Up

(

+

) /

%

=

Down

(

+

) /

%

=

Left

(

+

) /

%

=

Right

(

+

) /

%

=

Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Up Company

Down Company

Left Company

Right Company

has the lowest breakeven point, primarily due to

its high fixed costs

its high sales price

its low fixed costs

.