Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wrong Way Driving School charges $1,100 per student to prepare and administer written and driving tests. Variable costs of $440 per student include trainers' wages,

image text in transcribedimage text in transcribed

Wrong Way Driving School charges $1,100 per student to prepare and administer written and driving tests. Variable costs of $440 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $297,000 include the training facility fleet of cars. Read the requirements. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM = contribution margin.) CM per unit Situation a Situation b. Situation c. Situation d. Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete all answer boxes. Abbreviation used: CM = contribution margin.) + Required sales in units Situation a. + Situation b + Situation c. ( + )= Situation d. Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin when variable costs decrease. The contribution margin when the fixed costs decrease. Wrong Way Driving School charges $1,100 per student to prepare and administer written and driving tests. Variable costs of $440 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $297,000 include the training facility a fleet of cars. Read the requirements Requirement 1. For each of the following independent situations, calculate th Requirements Begin by showing the formula for contribution margin per unit and then entert ntribution margin.) Situation a - Situation b - Situation c. 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided a. Breakeven point with no change in information. b. Decrease sales price to $880 per student. c. Decrease variable costs to $275 per student. d. Decrease fixed costs to $264,000 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Situation d. Now select the labels to show the formula for breakeven point in units and the xes. Abbreviation used: CM = contribution margin.) Situation a. ( Situation b. Situation c. ( Print Done Situation d. Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin when variable costs decrease. The contribution margin when the fixed costs decrease

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

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

New Challenges For Future Sustainability And Wellbeing

Authors: Ercan Özen, Simon Grima, Rebecca Dalli Gonzi

1st Edition

1800439695, 9781800439696

More Books

Students also viewed these Accounting questions

Question

Did you open with an issue explanation?

Answered: 1 week ago