1. Complete a CVP Income Statement using the following data Sales: $450,250; Tot
ID: 2552706 • Letter: 1
Question
1. Complete a CVP Income Statement using the following data Sales: $450,250; Total VC: $375,000; Total FC: $98,000 2. Jordan Company sells a product, Product 250, which has the following data: SP: $50.75; VC/unit: $25.75; Total FC: $110,000 a. b. c. What is the CM/unit? What is the BE in units? What is the BE in dollars? 3.Goldman Company has sales of $1,200,000 and total VC of $695,000 a. b. c. What is Goldman Company's CM? If they sold 25,000 units, what is the CM/Unit? What is the SP/Unit? 4. Aldredge Company sells Product Z for $425. VC/unit are $225 and FC are $135,000 What is the CM/unit? a. b. What is the BE in units? What is the CM Ratio? Using the CM Ratio, what is the BE in dollars c. d. 5. Using the data in # 4 above, prepare a CVP Income Statement assuming 990 units are sold 6. Keaubie Company produces product ABC, which has a SP of $95, VC/Unit of $45, and FC of $100,000 a. What is the BE in Units (Use CM Method)? b. What is the CM Ratio? c. If XYZ has sales totaling $235,000, how much of it is used to cover FC and contribute to NI? 7. Morrison Company's information is as follows SP: $200; VC/Unit: $85; FC: $575,000 a. b. c. d. What is the CM/Unit? What is the CM Ratio? What is the BE in Sales Units? Sales dollars? If Morrison would like a NI of $402,500, how many units must they sell?Explanation / Answer
1-
sales
450250
less variable cost
375000
contribution
75250
less fixed cost
98000
EBIT
-22750
2-
sales
50.75
less variable cost
25.75
contribution margin
25
less fixed cost
110000
Break even point in units = fixed cost/contribution margin per unit
4400
break even point in sales =400*25
110000
3-
sales
1200000
less variable cost
695000
contribution margin
505000
contribution margin ratio = 505000/1200000
0.420833
if 25000 units are sold
selling price per unit
1200000/25000
48
variable cost per unit
27.8
27.8
contribution margin per unit
20.2
selling price per unit
1200000/25000
48
4-
sales
425
less variable cost
225
contribution margin per unit
200
less fixed cost
135000
Break even point in units = fixed cost/contribution margin per unit
675
contribution margin ratio = contribution/sales
0.470588
break even point in sales =400*25
286875
5-
sales
420750
less variable cost
222750
contribution margin per unit
198000
less fixed cost
135000
EBIT
63000
6-
sales
95
less variable cost
45
contribution margin per unit
50
Fixed cost
100000
break even point in units
100000/50
2000
contribution margin ratio = contribution margin per unit/selling price per unit
50/95
0.526316
sales
295000
variable cost
139736.8
contribution margin
155263.2
less fixed cost
100000
EBIT
55263.16
100000 would be used to cover fixed cost and contribute 55263.16 towards net income
7-
sales
200
less variable cost
85
contribution margin per unit
115
Fixed cost
575000
break even point in units
575000/115
5000
contribution margin ratio = contribution margin per unit/selling price per unit
85/115
0.73913
breakeven point sales to earn net income of 402500
(575000+402500)/115
8500
1-
sales
450250
less variable cost
375000
contribution
75250
less fixed cost
98000
EBIT
-22750
2-
sales
50.75
less variable cost
25.75
contribution margin
25
less fixed cost
110000
Break even point in units = fixed cost/contribution margin per unit
4400
break even point in sales =400*25
110000
3-
sales
1200000
less variable cost
695000
contribution margin
505000
contribution margin ratio = 505000/1200000
0.420833
if 25000 units are sold
selling price per unit
1200000/25000
48
variable cost per unit
27.8
27.8
contribution margin per unit
20.2
selling price per unit
1200000/25000
48
4-
sales
425
less variable cost
225
contribution margin per unit
200
less fixed cost
135000
Break even point in units = fixed cost/contribution margin per unit
675
contribution margin ratio = contribution/sales
0.470588
break even point in sales =400*25
286875
5-
sales
420750
less variable cost
222750
contribution margin per unit
198000
less fixed cost
135000
EBIT
63000
6-
sales
95
less variable cost
45
contribution margin per unit
50
Fixed cost
100000
break even point in units
100000/50
2000
contribution margin ratio = contribution margin per unit/selling price per unit
50/95
0.526316
sales
295000
variable cost
139736.8
contribution margin
155263.2
less fixed cost
100000
EBIT
55263.16
100000 would be used to cover fixed cost and contribute 55263.16 towards net income
7-
sales
200
less variable cost
85
contribution margin per unit
115
Fixed cost
575000
break even point in units
575000/115
5000
contribution margin ratio = contribution margin per unit/selling price per unit
85/115
0.73913
breakeven point sales to earn net income of 402500
(575000+402500)/115
8500
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