Do Ho ACG 2071 Fall 2017 nnifer 11/3/17 10:53 PM Homework: Ch. 9 CVP Analysis Sc

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Do Ho ACG 2071 Fall 2017 nnifer 11/3/17 10:53 PM Homework: Ch. 9 CVP Analysis Score: 0 of 1 p E7-17A (similar to) 1 of 8 (0 complete) | Hw Score: 0%, 0 of 8 p Question Help (Click the icon to view the income statement.) relevant range is sales of between $125,000 and $650,000. Requirement 1. Prepare contribution margin income statements at sales levels of $190,000 and $400,000. (Hint: Use the contribution margin ratio.) Enter losses Travel Statement Contribution margin Enter any number in the edit fields and then click Check Answer Clear All

Explanation / Answer

Sale          435,000 Variable expense          152,250 Variable expense =152250/435000 35.00% Fixed cost          166,400 Let's prepare the contribution margin statement Revenue          190,000     400,000 Variable cost @ 35%          (66,500) (140,000) Contribution          123,500     260,000 Fixed cost       (166,400) (166,400) Operating profit          (42,900)        93,600 Break even sale =Fixed cost/Contribution =166400/(100%-35%) Break even sale          256,000

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