Company Name Price Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Avocado Co 50 15 3,000 5 1,000 Banana Co 60 18 2,000 9 1,000 Cherry Co 35 8 4,000 2 2,000 Answer these questions 1. Which company has the lowest variable cost? 2. Which company has the lowest fixed cost? 3. Which company has the lowest breakeven point in units? 4. What is the breakeven point in units for the company that has the lowest breakeven point? 5. Which company has the highest breakeven point in dollars? 6. What is the breakeven point in dollars for the company that has the highest breakeven point? 7. What is the Poor Performance margin of safety in units for Avocado Company? 8. What is the Poor Performance margin of safety in dollars for Avocado Company? 9. What is the Good Performance margin of safety in units for Banana Company? 10. What is the Good Performance margin of safety in dollars for Banana Company

Company Name Price Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs Avocado Co 50 15 3,000 5 1,000 Banana Co 60 18 2,000 9 1,000 Cherry Co 35 8 4,000 2 2,000 Answer these questions 1. Which company has the lowest variable cost? 2. Which company has the lowest fixed cost? 3. Which company has the lowest breakeven point in units? 4. What is the breakeven point in units for the company that has the lowest breakeven point? 5. Which company has the highest breakeven point in dollars? 6. What is the breakeven point in dollars for the company that has the highest breakeven point? 7. What is the Poor Performance margin of safety in units for Avocado Company? 8. What is the Poor Performance margin of safety in dollars for Avocado Company? 9. What is the Good Performance margin of safety in units for Banana Company? 10. What is the Good Performance margin of safety in dollars for Banana Company

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 4DQ: In the variable costing income statement, how are the fixed manufacturing costs reported, and how...

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Company Name	Price	Variable manufacturing costs	Fixed manufacturing costs	Variable selling costs	Fixed administrative costs
Avocado Co	50	15	3,000	5	1,000
Banana Co	60	18	2,000	9	1,000
Cherry Co	35	8	4,000	2	2,000