Doren Everest Carey 630000 $ 462,500 ? 252.000 150,000 Baker s 1.072.500 643500
ID: 2430634 • Letter: D
Question
Doren Everest Carey 630000 $ 462,500 ? 252.000 150,000 Baker s 1.072.500 643500 Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) Units Sold Contribution Margin per Unit Contribution Margin Ratio 277,500 303,600 360400 228,000 68.500 S 68,600 130,000 3.30 14.000 S 74.00 $ 11.00 40 % 60% 20 % Requirements 2. and 3. VWhich company has the lowest breakeven point in sales dollars? What causes the low breakeven Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. ( ounded to $11. Abbreviation used CM - contribution margin.) Fixed costsTarget proft CM ratio Required sales in dollars Baker Carey Doren Everest Which company has the lowest breakeven pointin sa es dolars? what eauses the losw breaievien peirt? ? | has the lowest bn,,keven point, primarily due toExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Baker Carey Doren Everest Sales Everest = 303,600/(1-.20) 1,072,500.00 630,000.00 462,500.00 379,500.00 Less Variable Expenses (643,500.00) (252,000.00) (277,500.00) (303,600.00) Contribution Margin 429,000.00 378,000.00 185,000.00 75,900.00 Fixed cost Everest = 75,900-68500 (360,400.00) (150,000.00) (228,000.00) (7,400.00) Net operating income 68,600.00 228,000.00 (43,000.00) 68,500.00 Contribution Margin Ratio = Contribution/ Sales 40.00% 60.00% 40.00% 20.00% Baker = (360,4000 + 0)/40% 901,000.00 Carey = (150,000+0)/60% 250,000.00 Doren = (228,000+0)/40% 570,000.00 Everest = (7,400 + 0)/20% 37,000.00 Everest has lowest BEP in $ primarily due to lower fixed costs
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