| C 0 ?? http://eztom! 2. t.tpx 10.00 points Apollo Company manufactures a singl
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| C 0 ?? http://eztom! 2. t.tpx 10.00 points Apollo Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $464,000 (1) Prepare a contribution margin income statement for Apollo Company at the break-even point. (Leave no cells blank - be certain to enter "O" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) Income Statement (at Break-E ven) (Click to select) (Click to select) Click to select) (Click to select) Net income (2) Assume if the company's fixed costs increase by $130.000, what amount of sales (in dollars) is needed to break even? (Omit the "$" sign in your response.) Break-even point Hints References Hint#1 Ask your instructor a question Check my workExplanation / Answer
(1)
Selling price per unit = 160
Variable costs per unit = 128
Fixed costs = 464,000
Contribution margin per unit = Selling price per unit - Variable costs per unit
= 160 - 128
= 32
Breakeven point in units = Fixed costs / Contribution margin per unit
= 464,000 / 32
= 14,500
APOLLO COMPANY
Contribution Margin Income Statement (at Break-Even)
(2)
Contribution margin per unit = 32
Fixed costs = 464,000 + 130,000 = 594,000
Breakeven point in units = Fixed costs / Contribution margin per unit
= 594,000 / 32
= 18,563 units
Sales revenues (14,500*160) 2,320,000 Variable costs (14,500*128) 1,856,000 Contribution margin 464,000 Fixed costs 464,000 Net income 0Related Questions
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