Vanable Costing Resources Copy Paste The costing managel for BEIndustries is tas
ID: 2552412 • Letter: V
Question
Vanable Costing Resources Copy Paste The costing managel for BEIndustries is tasked with forecasting ¡pected breakeven and profitabity leves tr its Cost Cowe Dnsen Anough naaapianon.hn-=-on the forecast, the manager must be prepared to explain the impact on various cost components of changes in certain assumptons Using the information included within the Resouross tab,complels the tables below for B E. Now Induses For Tabie 1, calculate the required amounts identified in colums A and antar your assoclated response in units or doliars in column B For Table 2, determine the impact of the change identhed in the frst column and enter the impact in scond column Table 1: Calculation 2 1. Breskeven point in units 3 2. Breakeven point fin dolars) 3. Units needed to eam desired prott 5 4. Sales dolies needed for desired prot Table 2: impact Change 5 impact on the contibution margin fixed costs i . Impact on the contribution ncrease by 540,000 margin ratio if par unt sales and variable costs both decrease by $10 on total variable costs the desired protax prott increases by $30.00o 8 Impact on breakeven in unts tax rate decreases to 30 percentExplanation / Answer
Contribution margin per unit = Selling price per unit - Variable costs per unit
= 90 - 63
= 27
Contribution margin percentage = Contribution margin per unit / Selling price per unit
= 27 / 90
= 30%
1. Breakeven point in units = Fixed costs / contribution margin per unit
2. Breakeven point in dollars = Fixed costs / Contribution margin percentage
3. Units needed to earn desired profit = (fixed costs + desired profit) / contribution margin per unit
4. Sales dollars needed for desired profit = (fixed costs + desired profit) / contribution margin percentage
Table 2:
A B 1. Calculation Amount 2. 810,000 / 27 30,000 3. 810,000 / 0.3 2,700,000 4. [(810,000+135,000)] / 27 35,000 5. [(810,000+135,000)] / 0.3 3,150,000Related Questions
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