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The budgets of four companies yield the following information: Requirements 1. Fill in the blanks for each company. 2. Compute breakeven, in sales dollars, for
The budgets of four companies yield the following information:
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? |
Data Table Company Q R S T $ Target sales 687,500 $ 450,000 $ 162,500 $ Variable expenses 192,500 270,000 Fixed expenses 153,000 81,000 $ 90,000 $ $ 133,000 Operating income (loss) Units sold 120,000 15,625 18,000 Contribution margin per unit $ 6.60 $ $ 8.32 $ 35.00 Contribution margin ratio 0.60 Print Done The budgets of four companies yield the following information: B (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? Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.) R S T Target sales $ 687,500 $ 450,000 $ 162,500 Variable expenses 192,500 270,000 Fixed expenses 153,000 81,000 90,000 133,000 Operating income (loss) Units sold 120,000 15,625 18,000 TA 6.60 $ 8.32 $ 35.00 Contribution margin per unit Contribution margin ratio 0.60 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 "O" in the appropriate cell.) + = Breakeven sales ( + )/ R + ) S ( + )/ = T ( + Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? has the lowest breakeven point, primarily due to
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