Data Table he budgets of four companies yield the following information: BClick
ID: 2397752 • Letter: D
Question
Data Table he budgets of four companies yield the following information: BClick the icon to view the budget information for the four companies.) ead the requirements Company Blue Red Green Yellow Blue Red Green Yellow S (d) S 1,155,000 924,000 116,000 $ 2,100,000 et Sales Revenue ariable Costs ixed Costs Operating Income (Loss) mits Sold ontribution Margin per Unit ontribution Margin Ratio equirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low egin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for xample, S10 25 would be rounded to S11. Abbreviation used CMcontribution margin.) Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss Units Sold Contribution Margin per Unit Contribution Margin Ratio S 2,100,000 $1,155,000 924,000 116,000 (a) 43,125 (b) 160,000 S (e) 7.500 134,550 43,125 134,550 160,000 S (g) S74,500 238,800 120,000 3.50 74,500 S 238,800 120,000 3.50 7,500 $ S (f) S 77.00 S 13.00 $77.00 $ 13.00 80% 40% 80% 40% Print Done up to )f = Required sales in dollars Blue Red reen ellowExplanation / Answer
ans 1 Blue Red Green Yellow Net sales Revenue $2,100,000 215625 $1,155,000 224250 43125/.2 134550/.6 Variable cost 1680000 43125 924000 134550 2100000-(120000*3.5) Fixed cost $181,200 160000 116000 15200 (2100000-1680000-238800) (224250-134550-74500) Operating Income/(loss) 238800 12500 $115,000 74500 215625-43125-160000 (1155000-924000-116000) Units sold 120000 7500 3000 6900 (1155000-924000)/77 (224250-134550)/13 Contribution Margin per unit 3.5 23 77 13 (215625-43125)/7500 Contribution Margin Ratio 20 80% 20 40% (3.5*120000)/2100000*100 77/(1155000/3000)*100 ans 2 and 3 Fixed cost+ Targey profit/ CM ratio Required sales in $ Blue $181,200 0 20% 906000 Red 160000 0 80% 200000 Green 116000 0 20% 580000 Yellow 15200 0 40% 38000 the lowest break even point is for yellow company If any doubt please comment
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