helppppp???? sales, cost-volume profit chart, margin of laker C of the year. The
ID: 2392518 • Letter: H
Question
helppppp????
sales, cost-volume profit chart, margin of laker C of the year. The eotal of all peocduction casts for the ycar is theres ame inventories at the cod 0 2012 as at the eg leas fill -owtK for their departments during 2012. A suimmary npon of s is as tollows theseeWth this estienate 10.00 Direct labor Factory overhead 240,000 5.00 Selling expenses Sales salaries and commissions Advertising Travel Mscellaneous selling expense Office and officers salaries Supplies Miscellaneous administrative expense. Tatal $5000 It is expected that 40,000 units will be sold at a price of $75 a unit. Maximum sales the relevant range are 45,000 units Instructions 1. Prepare an estimated income statement for 2012. 2. What is the expected contribsution margin ratio? 3. Determine the break-even sales in units and dollars. i. Construct a cost-volume-peofit chart indicating the beeak-even sales within 5. What is the expected margin of safety in dollars and as a percentage of sales? 6. Determine the operating leverage.Explanation / Answer
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Baker Company Estimated Income Statement for the year ended December 31, 2012 Unit sales Total Sales Revenue 3000000 Cost of goods sold: Direct material 1200000 Direct labor 600000 Factory overheads 440000 Total cost of goods sold 2240000 Gross Profit 760000 Selling and administrative exp. Selling expenses Sales salaries and commissions 163000 Advertising 12000 Travel 4200 Miscellaneous selling expenses 102300 Total selling expenses 281500 Administrative Expenses Office and officers saaries 110000 Supplies 116000 Miscellaneous admn. Expenses 102500 Total administrative expenses 328500 Total selling and administrative exp. 610000 Net income 150000Related Questions
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