B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.
B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even.
Crazy Harry's
Pro Forma Income Statement
Sales $96,000
Cost of Goods Sold 46,240
Gross Profit $49,760
Fixed Expenses
Rent $2,400
Insurance 3,000
Salaries 16,500
Taxes 1,100
Miscellaneous Fixed Expenses 900
Total Fixed Expenses $23,900
Variable Expenses
Wages $11,200
Advertising 5,700
Benefits 2,800
Other Variable Expenses 1,120
Total Variable Expenses $20,080
Net Profit $5,040
a. Identify and Total Crazy Harry's Variable costs
b. Calculate Crazy Harry's Contribution Margin.
c. Calculate Harry's break-even sales point.
d. Create a break-even chart for Harry.
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