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? Secure https://www.mathxl.com/Student/PlayerTest.aspx?testId=184279421¢erwin;=yes ACCT 205-42 CRN#14292 Noelle Nunez 7/14/18 2:30 PM Test: Quiz CVP Chapter 20 Submit Test This Question: 1 pt 2 of 4 (3 complete) This Test: 4 pts possible The budgets of four companies yield the following information Click the ioon to view the budget information for the four companies.) Read the requirements. Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus sign or parentheses to enter an operating loss.) Blue Green Yellow $ 1,470,000 Data Table Net Sales Revenue S 912,000 343,200 ariable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM-contribution margin.) 90,000 456,000 208,000 265,000 $226,800 140,000 4.20 S 77,600 Red 15,000 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio S 1,470,000 $ (d) $ 912,000 (a) 90,000 456,000 (b) 208,000 265,000 S 76.00 S 13.00 80% 20% 343,200 S 226,800 $ (e) $ (g) S77,600 140,000 16,000 S 4.20 s (f) $ 76.00 $ 13.00 Required sales in dollars - 80% 20% Blue Red PrintDone Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? V has the lowest breakeven point, primarily due to Choose from any list or enter any number in the input fields and then continue to the next question.Explanation / Answer
Blue red Green Yellw net Sales revenue $ 1,470,000 $ 450,000 $ 912,000 $ 429,000 Variable Cost $ 882,000 $ 90,000 $ 456,000 $ 343,200 Fixed Cost $ 361,200 $ 208,000 $ 265,000 $ 8,200 Operating Income $ 226,800 $ 152,000 $ 191,000 $ 77,600 Units Sold 140,000 15,000 6,000 6,600 Contribution Margin PU $ 4.20 $ 24.00 $ 76.00 $ 13.00 Contribution Margin ratio 40% 80% 50% 20% 1 (a) Variable Cost - BLUE ;= (Net Sales Revenue - Contribution) = 1470000 - 140000 units*$4.20 $ 882,000 (b) FIXED COST - BLUE = Total Contribution - Operating Income = 140000 units*$4.20 - 226800 $ 361,200 c Contribution Margin Ration - BLUE = Contribution/Sales = (140000 units*$4.20)/1470000 40% (d) Sales Revenue - RED Variable Cost / (1-Contribution margin ratio) = 90000/(1-80%) $ 450,000.00 (e) Operating Income _Blue Sales-Variable Cost-Fixed Cost $450000-90000-208000 $ 152,000 (f) CONTRIBUTION PU BULE (sales-variable cost)/no. of units ;(450000-90000)/15000 units 24.00 (g) Operating Income _Green Sales-Variable Cost-Fixed Cost $912000-456000-265000 $ 191,000 (h) Units Sold _ Green Total Contribtion/Contribution [pu Sales-VC/Cont. pu (912000-456000)/76 6,000.00 (i) Contribution Margin Ration - green= Contribution/Sales (912000-456000)/912000 50% (j) Sales Revenue - yellow Variable Cost / (1-Contribution margin ratio) = 343200/(1-20%) 429000 (k) FIXED COST - yellow Sales-Variable Cost-operating Income $42900-343200-77600 $ 8,200 (l) Units Sold _ Yellow Total Contribtion/Contribution [pu Sales-VC/Cont. pu ($42900-343200)/13 6,600.00 2 required Sales in Dollar Fixed Cost / CM Ratio = Break even Sales Blue $ 361,200 / 40% = 903000 red $ 208,000 / 80% = 260000 Green $ 265,000 / 50% = 530000 yellow $ 8,200 / 20% = 41000 3 The Breakeven point in sales for Yellow company os lowest.
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