Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiger Corp. produces a single product. Data containing that product appears below: |Selling price per unit|$90 |Variable cost per unit|$60 |Contribution margin|$30 Fixed costs are

Tiger Corp. produces a single product. Data containing that product appears below:

|Selling price per unit|$90

|Variable cost per unit|$60

|Contribution margin|$30

Fixed costs are $270,000. The company is currently selling 10,000 units.

Required:

A. Compute the cost volume profit analysis format for the income statement.

B. Compute the break-even for both dollars and units from the above information.

C. Compute the Margin of Safety in S and the Margin of Safety percent.

D. Compute the degree of operating leverage. If sales drop 20% what will be the impact on net income?


Step by Step Solution

3.37 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

A CostVolumeProfit CVP Analysis Format for the Income Statement Sales Revenue 10000 units 90 900000 ... 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

Step: 3

blur-text-image

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

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292

More Books

Students also viewed these Accounting questions