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s homework chapter22 (part 1) C ? ?10 http://eztonteducation.com/hm.tpx 0 + : fa????? Questions 5-9 (of 9) [The following information applies to the questions displayed below Jetson Co. sold 19,000 units of its only product and incurred a $41.300 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2012's activities, the production manager notes that variable costs can be reduced 30% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $140,000. The maximum output capacity of the company is 40,000 units per year JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011 Sales Variable costs $693.500 554,800 Contribution margin Fixed costs 38,700 180,000 Net loss $ (41.300)Explanation / Answer
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Breakeven in $ Sales $900,000= Fixed Cost/Contribution Margin Ratio
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Breakeven in $ Sales : $727,273= Fixed Cost/Contribution Margin Ratio
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JETSON CO. CONTRIBUTION MARGIN INCOME STATEMENT,2011 amount in $ PRICE PER UNIT % OF SALES SALES 693,500 36.50 100% VARIABLE COST 554,800 29.20 80% CONTRIBUTION MARGIN 138,700 7.30 20% FIXED COSTS 180,000 NET LOSS (41,300)Related Questions
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