Assume that sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201. What is the new break-even? Mirabel ManufacturingBudgeted Income StatementFor the Year Ending December 31$Sales36,750,000Cost of goods sold:Variable13,300,000Fixed9,300,000Gross Margin$14,150,000Selling & Administrative$$$Commissions4,410,000Fixed Marketing Expenses1,350,000Fixed Administrative6,000,000Net Operating Income2,390,000Model 101Model 201Model 301Normal Annual Sales VolumeUnit Selling PriceVariable expense per unit16,00019,00011,000650750$1,100$250200500%24のの

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Assume that sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201. What is the new break-even?

Assume that sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201. What is the new break-even?

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

Assume that sales volume remains fixed but there is a 5% increase in variable expenses (materials cost) for the Model 101 and 301, and a 10% increase in variable expenses for Model 201. What is the new break-even?

Mirabel Manufacturing
Budgeted Income Statement
For the Year Ending December 31
$
Sales
36,750,000
Cost of goods sold:
Variable
13,300,000
Fixed
9,300,000
Gross Margin
$
14,150,000
Selling & Administrative
$
$
$
Commissions
4,410,000
Fixed Marketing Expenses
1,350,000
Fixed Administrative
6,000,000
Net Operating Income
2,390,000
Model 101
Model 201
Model 301
Normal Annual Sales Volume
Unit Selling Price
Variable expense per unit
16,000
19,000
11,000
650
750
$
1,100
$
250
200
500
%24
のの

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