Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Co. manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: a)

image text in transcribedimage text in transcribed XYZ Co. manufactures and sells a single product. The following information is available regarding sales and costs for the last quarter of the year: a) What is the contribution margin per unit? Contribution margin per unit =$ b) What is the company's CM ratio? Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12\%) CM ratio = c) What is the quarterly break-even point in units? d) What is the quarterly break-even point in dollars? Break-even point in dollars =$ e) How many units would have to be sold each quarter to earn a target profit of $48,000 ? g) Refer to the original data. Compute the company's margin of safety in dollars. Margin of safety =$ h) Refer to the original data. Compute the company's margin of safety percentage. Please make sure your final answer(s) are ir percentage form and are accurate to the nearest whole percent. (For example: 12\%) Margin of safety = i) If sales increased by $56,000 per quarter and there is no change in fixed costs, by how much would you expect quarterly nneratina income to increase

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

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

11th Edition

0273712136, 9780273712138

More Books

Students also viewed these Accounting questions

Question

6. What are some of the advantages and disadvantages of ESOPs?

Answered: 1 week ago