Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next period. Its expected contribution margin ratio is 65%. 1. Compute the amount of expected total dollar sales. 2. Compute the amount of expected total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of expected total dollar sales. Dollar Sales Numerator: Denominator: Total Dollar Sales %3D Total dollar sales %3D < Required 1 Required 2 >

Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next period. Its expected contribution margin ratio is 65%. 1. Compute the amount of expected total dollar sales. 2. Compute the amount of expected total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of expected total dollar sales. Dollar Sales Numerator: Denominator: Total Dollar Sales %3D Total dollar sales %3D < Required 1 Required 2 >

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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Finch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >
Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $4,500, and the variable costs are $3.90 a unit. a. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar Enter zero if necessary. Use a minus sign to enter losses, if any Quantity Variable Costs Fixed Costs 0 500 1,000 $ $ $ S 2,500 $ 3,000 S 1,500 2,000 Total Revenue S Quantity $ $ Total Revenue $ $ $ $ $ $ $ $ $ S Fixed Costs $ $ Total Costs b. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary Use a minus sign to enter losses, if any Variable…