based on the information on bertuli\'s income statement prepared in the function

Question

based on the information on bertuli's income statement prepared in the functional or traditional format prepare bertuli's income statement Below in the contribution margin format.

Based on the formation on Bertul income Statement prepared in the functional or Traditional format prepare Bertul Income Statement below in the contribution Margin format Bertuli Pianos, Inc. Income Statement For the Month Ended August 31, 2014 Total X53.125 per piano) 125.000 Calculate the break-even point in Sales Dollars and Units Calculate the units and dollars of sales necessary to achieve a net income of $15.000

Explanation / Answer

BEP( Unit ) =fixed cost /contribution per unit

          = 7000 /375

           = 19 units

**contribution margin ratio : 375/3125= .12

BEP ($) =Fixed cost /CM ratio

     = 7000/ .12

    = $ 58333

b)Desired unit sales : [fixed cost+ desired income ]/contribution per unit

         =[7000+15000]/375

        = 59 units

Desired $ sales : [7000+15000]/.12

        = $ 183333

Contribution margin Income statement sales 125000 3125 less:variable expense cost of goods sold (98000) (2450) sales salaries and commissions [125000*.08] (10000) (250)     [3125*.08] Delivery of piano (1200) (30) clerical (800)   [40*20) (20) Total variable cost (110000) (2750) contribution margin 15000 375 less:fixed cost Advertising (700) sales salaries and commissions (950) Utilities (350) Depreciation on sales facilities (800) executive salaries (2500) Insurance (400) depreciation on office equipment (300) clerical (1000) Total fixed cost (7000) Net operating income 8000

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