Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Why is 1b incorrect? It states the formula is incorrect as well. What would be the corrected solution and formula? P3-47 (similar to) Questi Stone
Why is 1b incorrect? It states the formula is incorrect as well. What would be the corrected solution and formula?
P3-47 (similar to) Questi Stone Engine Company manutfactures and sells diesel engines for use in small tarming equipment. For its 2017 budget, Stone Engine Company estimates the following The income statement showed that variable and fixed costs were as planned, which meant that the 2017 annual no projection would not be met unless management took action. A management committee was formed and presenter mutually exclusive aiternatives to the president (Click the icon to view the budget data.) The first-quarter income statemient, as of March 31, reported that sales were not meeling expeclations. During te first querter,(Cick the con to view the aternatives) The first-quarter income staterment, as of March 31reported that sales were not meeting expectations. During the first quarter only 350 units had been sald at the current price of S8,500 Read the requirements. Requirement 1a. If no changes are made to the selling price or cast structure, deternine the number of units that Stone Engine Company must sell to break even Select the formula labels, eter the amounts and calculate the breakeven number of engines. Fixed costs Contribution margin per unitBreakeven nurriber of urits 1,025,000 3,500 1,150 Requirement lb. If no changes are made to the selling price ocost structure, determine the number of units that Stone Engine Company must sell to achieve its net income objective Sclect the formula labels, cnter the amounts and calculate the number of engines roquired to be sold to achiove a nct income oT 5900,000. Data Table Quantity of units Contribution margin per unitrequired lo be suld 1430 Fixed costs Target net income 4025000 ) A 3500 Selling price Variable cosl per erigine Arinual ixed costs Nt incurne Incomc tax rate 8,500 5,000 $ 4,025,000 5 900,000 30 % S Print Done Choose from any list or enter any number in the input fields and then click CheckStep 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