Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The condensed budgeted income statement for the Jennifer and David partnership for 2022 is as fol lows: JENNIFER AND DAVID LLP Income Statement Year Ending
The condensed budgeted income statement for the Jennifer and David partnership for 2022 is as fol lows: JENNIFER AND DAVID LLP Income Statement Year Ending December 31, 2022 Sales {216,000 units] $1,030,000 ICost of goods sold 720,000 Gross prot 360,000 Operating expenses Selling $252,000 Administrative 135,000 382,000 Operating loss $07,000) A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable; (Use the CVP income statement format in calculating operating income.) (a) V Your answer is correct. Calculate the break-even point in total sales dollars and in units for 2022. (Round contribution margin per unit to 2 decimal places, e.g. 1.25, contribution margin ratio to 1 decimal place, e.g. 15.2% and final answers to O decimal places, e.g. 5,275.) Break-even point in sales 1156705 Break-even point in units 231341 eTextbook and Media Attempts: 2 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2(Cl David was a marketing major in university. He believes that the sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Jennifer's: {1] increase variable selling expenses to $0.55 per unit. (2} lower the selling price per unit by $0.25, and [3) increase xed selling expenses by $36,000. David quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Calculate David's breakeven point in dollars and units. (Round mntrfbuon margin per unand mnh'fhuon margin ratio to 2Mmal' places, 23. 15.25 or 15.25% and nal answers to 0 decimal plums, es. 5.2?5.) Breakeven point in sales $ I Breakeven point in units I What effect would Nguyen's plan have on the partnership's operating income and its break-even point in dollars? eTextbook and Media Save for Later Attempts: 0 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2
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