Case 4 ( 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. Calculate the contribution margin amount and the variable cost if net income is BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to Case 5 40% of sales. What is the pretax income if sales are $650,000? Answer:
Case 4 ( 120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales. Calculate the contribution margin amount and the variable cost if net income is BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to Case 5 40% of sales. What is the pretax income if sales are $650,000? Answer:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
PLease answer last two subparts only
Case 4
Case 5
no handwritten answers thanku

Transcribed Image Text:Question 2
The Layal Corporation has compiled the following financial data for a new retail facility: annual fixed
costs are estimated at $100,000; selling price per unit of product estimated at $15, variable cost per
unit estimated at $5. The company is also interested to achieve a profit of 120,000 in the first year of
operations and 200,000 in the second year of operations.
Formulas to be used
Break-even point units - Fixed costs / selling price per unit-variable cost per unit
Break-even point $- Break-even point Units x selling price per unit
Break-even point units (profit) - Fixed costs + Profit/ selling price per unit- variable cost per unit
Break-even point Profit $-Break-even point units - Fixed costs / selling price-variable cost
Case 1
). Calculate the breakeven point in units and $ and the contribution margin.
Answer
Case 2 (
Calculate the breakeven point in units and $ and contribution margin taking into
account the profit that the corporation is planning to have.
Answer
Case 3
Calculate a) the breakeven point in units and S b) contribution margin c) the net
income if the corporation anticipates its fixed costs to increase by 180,000 and the selling price to
increase by 40%.
Answer:
Case 4 (
Calculate the contribution margin amount and the variable cost if net income is
120,000, fixed cost amounts to 82,000 and contribution margin is 20% of sales.
I
BACC 210 Assignment Part I George D. Kambouris CPA Faculty Auditing, Accounting
Case 5
Hiller Co. anticipates total fixed costs of $120,000 and variable costs equal to
40% of sales. What is the pretax income if sales are $650,000?
Answer:
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