Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information related to K-Zone company during the year 2021: Number of units sold 50,000 units Total Sales revenue $1,500,000 Variable cost $18 per

The following information related to K-Zone company during the year 2021:

Number of units sold 50,000 units

Total Sales revenue $1,500,000

Variable cost $18 per unit

Fixed cost $6 per unit

Target profit $100,000

1- Calculate the breakeven point in units.

2- Calculate the breakeven point in dollars.

3- Calculate the number of units to achieve the target profit.

4- Calculate sales revenue to achieve target profit.

5- Calculate the margin of safety in units.

6- Calculate the degree of operating leverage.

7- Prepare the income statement by using the contribution method.

8- Draw the contribution margin graph.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Audit Anything The Pink Book Of Auditing Any Process

Authors: R. Alakbarov

1st Edition

1520195575, 978-1520195575

More Books

Students also viewed these Accounting questions

Question

3. What should a contract of employment contain?

Answered: 1 week ago

Question

1. What does the term employment relationship mean?

Answered: 1 week ago