6 Data Section: Fixed Variable 7 -- 8 Production costs: 9 Direct materials $2.30 10 Direct labor 4.70 $225,000 Factory overhead 12 Selling expenses: 11 3.00 97,000 47,500 16,200 13 Sales salaries & commissions 0.75 14 Advertising 15 Miscellaneous selling expense 16 General expenses: 17 Office salaries 18 Supplies 19 Miscellaneous general expense 92,000 12,300 15,000 0.25 20 21 $505,000 $11.00 22 23 24 Selling price per unit 25 Expected unit sales $16.00 120,000 26 27 28 Answer Section: 29 30 Contribution margin per unit 31 Contribution margin ratio 32 Unit sales at break-even point 33 Dollar sales at break-even point 34 Expected net income FORMULA1 FORMULA2 FORMULA3 FORMULA4 FORMULA5 35

6 Data Section: Fixed Variable 7 -- 8 Production costs: 9 Direct materials $2.30 10 Direct labor 4.70 $225,000 Factory overhead 12 Selling expenses: 11 3.00 97,000 47,500 16,200 13 Sales salaries & commissions 0.75 14 Advertising 15 Miscellaneous selling expense 16 General expenses: 17 Office salaries 18 Supplies 19 Miscellaneous general expense 92,000 12,300 15,000 0.25 20 21 $505,000 $11.00 22 23 24 Selling price per unit 25 Expected unit sales $16.00 120,000 26 27 28 Answer Section: 29 30 Contribution margin per unit 31 Contribution margin ratio 32 Unit sales at break-even point 33 Dollar sales at break-even point 34 Expected net income FORMULA1 FORMULA2 FORMULA3 FORMULA4 FORMULA5 35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Contribution margin is $5

Contribution margin ration is 31.25%

Break even points in units is 101,000

Using the info given and the chart, find

A. Dollar sales at break even point.

B. Expected Net Income

I already have the first three answers.

6 Data Section:
Fixed
Variable
7
--
8 Production costs:
9
Direct materials
$2.30
10
Direct labor
4.70
$225,000
Factory overhead
12 Selling expenses:
11
3.00
97,000
47,500
16,200
13
Sales salaries & commissions
0.75
14 Advertising
15 Miscellaneous selling expense
16 General expenses:
17
Office salaries
18 Supplies
19 Miscellaneous general expense
92,000
12,300
15,000
0.25
20
21
$505,000
$11.00
22
23
24 Selling price per unit
25 Expected unit sales
$16.00
120,000
26
27
28 Answer Section:
29
30 Contribution margin per unit
31 Contribution margin ratio
32 Unit sales at break-even point
33 Dollar sales at break-even point
34 Expected net income
FORMULA1
FORMULA2
FORMULA3
FORMULA4
FORMULA5
35

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