Complete Stop Driving School charges $1,700 per student to prepare and administer written and driving tests. Variable costs of $1,020 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $510,000 include the training facility and fleet of cars. Read the requirements. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abb CM per unit Situation a. Situation b. Situation c. Situation d. Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. ( Required sales in units Situation a. Situation b. Situation c. Situation d. ( ( + + + ) + )+ = )+ Requirements Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units. The breakeven point when the sales price decreases. The breakeven point 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $1,360 per student. c. Decrease variable costs to $680 per student. d. Decrease fixed costs to $401,200. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin ▾when variable costs decrease. The contribution margin when the variable costs decrease. The breakeven point Print Done when the fixed costs decrease. when fixed costs decrease.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete Stop Driving School charges $1,700 per student to prepare and administer written and driving tests. Variable costs of $1,020 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $510,000 include the
training facility and fleet of cars,
Read the requirements.
Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units:
Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abb
CM per unit
Situation a.
Situation b.
Situation c
Situation d.
Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation.
(
Required sales in units
(
Situation a.
Situation b.
Situation c.
Situation d.
+
+
) +
) +
Requirements
1. For each of the following independent situations, calculate the contribution
margin per unit and the breakeven point in units by first referring to the original
data provided:
a. Breakeven point with no change in information.
b. Decrease sales price to $1,360 per student.
c. Decrease variable costs to $680 per student.
d. Decrease fixed costs to $401,200.
2. Compare the impact of changes in the sales price, variable costs, and fixed
costs on the contribution margin per unit and the breakeven point in units.
Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units.
First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit.
The contribution margin
when the sales price decreases. The contribution margin
▾when variable costs decrease. The contribution margin
Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units.
The breakeven point
when the sales price decreases. The breakeven point
when the variable costs decrease. The breakeven point
Print
Done
when the fixed costs decrease.
✔when fixed costs decrease.
Transcribed Image Text:Complete Stop Driving School charges $1,700 per student to prepare and administer written and driving tests. Variable costs of $1,020 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $510,000 include the training facility and fleet of cars, Read the requirements. Requirement 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abb CM per unit Situation a. Situation b. Situation c Situation d. Now select the labels to show the formula for breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. ( Required sales in units ( Situation a. Situation b. Situation c. Situation d. + + ) + ) + Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $1,360 per student. c. Decrease variable costs to $680 per student. d. Decrease fixed costs to $401,200. 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin ▾when variable costs decrease. The contribution margin Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units. The breakeven point when the sales price decreases. The breakeven point when the variable costs decrease. The breakeven point Print Done when the fixed costs decrease. ✔when fixed costs decrease.
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