Cleary Company manufactures and sells a single product. The​ company's sales and expenses for last year​ follow:   Total Per Unit % Sales. . . . . . . . . . . . . . . . . . . $100,000 $20 ? Variable expenses. . . . . . . ? ? ? Contribution margin. . . . . . ? ? ? Fixed expenses. . . . . . . . . . 12,000     Operating income. . . . . . . . $28,000         1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:   a. What is the total contribution​ margin? b. What is the total variable​ expense? c. How many units were​ sold? d. What is the​ per-unit variable​ expense? e. What is the​ per-unit contribution​ margin? 2. Answer the following questions about breakeven​ analysis:   a. What is the breakeven point in​ units? b. What is the breakeven point in sales​ dollars? 3. Answer the following questions about target profit analysis and safety​ margin:   a. How many units must the company sell in order to earn a profit of $50,000​? b. What is the current margin of safety in​ units? c. What is the margin of safety in sales​ dollars? d. What is the margin of safety in​ percentage?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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Cleary Company manufactures and sells a single product. The​ company's sales and expenses for last year​ follow:
 
Total
Per Unit
%
Sales. . . . . . . . . . . . . . . . . . .
$100,000
$20
?
Variable expenses. . . . . . .
?
?
?
Contribution margin. . . . . .
?
?
?
Fixed expenses. . . . . . . . . .
12,000
   
Operating income. . . . . . . .
$28,000
 
 

 

 

1.
Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:
 
a. What is the total contribution​ margin?
b. What is the total variable​ expense?
c. How many units were​ sold?
d. What is the​ per-unit variable​ expense?
e. What is the​ per-unit contribution​ margin?
2.
Answer the following questions about breakeven​ analysis:
 
a. What is the breakeven point in​ units?
b. What is the breakeven point in sales​ dollars?
3.
Answer the following questions about target profit analysis and safety​ margin:
 
a. How many units must the company sell in order to earn a profit of
$50,000​?
b. What is the current margin of safety in​ units?
c. What is the margin of safety in sales​ dollars?
d. What is the margin of safety in​ percentage?
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