**Break-even Analysis Assignment****Objective:** Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".---### Income Statement**Sales**- Product AA: $ [ ]- Product BB: $ [ ]- Product CC: $ [ ]- **Total Sales:** $ [ ]**Variable Costs**- Product AA: $ [ ]- Product BB: $ [ ]- Product CC: $ [ ]- **Total Variable Costs:** $ [ ]**Contribution Margin:** $ [ ]**Fixed Costs:** $ [ ]**Net Income:** $ [ ]---*Note: Make sure to enter all amounts accurately. The goal is to demonstrate the calculation of the break-even point where net income equals zero, balancing total sales with total costs including variable and fixed costs.**A reminder: Break-even point in sales $ [ ]*(End of assignment)---**Instructions for Use:**Fill in the values accurately in the provided fields to calculate the break-even point effectively. This exercise will help students understand the relationship between sales, costs, and profitability. **Morris Industries Case Study**Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for these products are as follows:| Product | Sales Price per Unit | Variable Cost per Unit ||---------|----------------------|------------------------|| AA | $50 | $35 || BB | $40 | $15 || CC | $35 | $5 |Their sales mix is reflected as a ratio of 5:3:2. The annual fixed costs shared by the three products are $231,000 per year.**Questions and Tasks:****A.** What are the total variable costs for Morris with their current product mix?- **Total variable costs:** $ [____]**B.** Calculate the number of units of each product that will need to be sold in order for Morris to break even.| Product | Number of Units per Product ||---------|------------------------------|| AA | [____] || BB | [____] || CC | [____] |**C.** What is their break-even point in sales dollars?- **Break-even point in sales:** $ [____]**D.** Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".**Income Statement:**[____]**Note:** Ensure you use appropriate accounting formulas and calculations to solve the above tasks.

Break even point in unit sales shows number of units to be sold to come into no profit and no loss…

A. What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales $ D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".

A. What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales $ D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Take into account the possibility of raising the cost of a good with an 8% profit margin. Calculate the effect of this price increase on the profit margin if you could raise the price by 1% while keeping the sales volume (in unit terms) at the same level as before the price increase. (Assume there are no fixed costs while answering this question. Only the percentage change in profit margin has to be calculated.)
Ay 3. Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is the total contribution (profit) based on the optimal price?
AA Company produces and sells refrigerator magnets to be sold as novelty items by resorts. Last year, the company sold 198,400 units. The income statement for AA Company for last year is as follow: $992,000 545,600 $446,400 Sales Less: Variable expenses Contribution margin Less: Fixed expenses 180,000 $266,400 Operating Income How much was the margin of safety in revenue for last year? (Answer format: $123,456.78) * Your answer Suppose that the selling price decreases by 8 percent. How much is the revised breakeven point in units? (Answer format: 123.45) * Your answer
Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$
XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. At the same time, the company plans to decrease the selling price per unit by half. Assuming that the total fixed cost and the variable cost per unit remain unchanged, what would be the effect on ?profit .Cannot be determined using the information in the question a O Profit would remain unchanged b O Profit would decrease .c O None of the given answers .d O Profit would increase e O
Please solve accurately. Thank you
Please answer with explanation. I will really upvote
Need help solving this, please.
Each of a company's two product lines has a different contribution margin ratio . If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio , which of the following is true ? O a Fixed cost will be constant . . the breakeven point will decrease . Ocall of the answers are true . d the average contribution margin ratio will increase . O e operating income will increase
How do you calculate the break-even point in sales? Contribution margin fixed costs Fixed costs total sales Profit variable costs Fixed costs contribution margin % 0,000