Blossom Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP incomestatements for a recent quarter's activity are presented below.SalesVariable costsContribution marginFixed costsNet incomeTablet Division$671,000496,540$174,460MP3 Player Division$429,000253,110$175,890Total$1,100,000749,650350,350128,037$222,313 Calculate the company's break-even point in sales dollars. (Do not round intermediate calculations; round final answer to 0 decimalplaces, e.g. 1,526.)Break-even point $

Answer : Break even point in $ : Break even point in $ = Fixed cost / Contribution margin ratio…

Answered: e costs bution margin 496,540 $174,460…

Business

Accounting

e costs bution margin 496,540 $174,460 253,110 $175,890 749,650 350,350

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: McGown Corporation has the following information: Raw Materials Inventory Work in Process Inventory…

A: MANUFACTURING COST Manufacturing Cost are those Cost Which is Directly or Indirectly Associates…

Q: Which of the following costs are NOT variable? Cost 2. 1. $100,000 $300,000 3. 10,000 Units 4.…

A: The correct answer is: (C) only 3 i.e the cost which remains the same at both 10,000 units and…

Q: Contribution margin $ 26, 100 $ 10, 600 $ 25, 400 Fixed costs allocated to each product line 10, 980…

A: Please see the explanation for the answer If you have any questions, just comment down. Thank…

Q: Units sold Units produced Fixed production costs Variable production costs per unit Selling price…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 122,000 0 % 40 % 40 % 20…

A: The direct method does not allocate any costs to the other service departments; instead, it directs…

Q: Annual sales volume Unit selling price Variable expense per unit Contribution margin per unit Velcro…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Question #1 Copr. Goed Select financial data for Bora Co. are presented below. Sales quantity 400…

A: Contribution Margin: It implies a measurement that is often used by the business to find out the…

Q: Required information [The following information applies to the questions displayed below.] Use the…

A: Under the direct method, the service department costs are allocated directly to the production or…

Q: Exercise 23-13 (Algo) Special offer pricing LO P7 Farrow Company reports the following annual…

A: Analysis of special offers is an essential component of marketing and sales strategy since it offers…

Q: Cost A Cost B Cost C Total Costs Cost B is a A. Fixed B. variable C. Mixed D. sunk 60,000 units…

A: Expenses that change according to the volume of products or services a company generates are known…

Q: Compute the breakeven revenue. Revenue Variable costs Contribution margin $40,000 30,000 10,000

A: Solution... Contribution margin ratio = Contribution margin / sales revenue

Q: If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what…

A: Given: Sales=$796000Variable cost =76% of salesIncome from operations=$230000

Q: 10. Louise Corp. has a contribution margin ratio of 31%, fixed costs of $62,000, and a profit of…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: Fill in the missing amounts in each of the following eight case situations. Treat each case…

A: Contribution can be determined by deducting variable expenses from sales. Contribution margin can be…

Q: Question Content Area If fixed costs are $284,000, the unit selling price is $35, and the unit…

A: The objective of this question is to calculate the break-even sales in units after the fixed costs…

Q: Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit…

A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…

Q: Compute the company's margin of safety in both dollars and percentage terms? Per unit…

A: Margin of safety sales = Total sales - Break even sales Margin of safety in percentage = Margin of…

Q: Question Content Area If sales are $808,000, variable costs are 74% of sales, and operating income…

A: The objective of the question is to calculate the contribution margin ratio given the sales,…

Q: 14.if sales are $793,000, variable costs are 73% of sales, and operating income is $204,000, what is…

A: Contribution margin: Difference between the sales and the variable costs is called contribution…

Q: 1) Company "Y" has two service departments, DA and DB, and two production departments, P1 and P2..…

A: The department costs can be allocated to other departments using various methods as direct method,…

Q: Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000…

A: Formula: Margin = ( Contribution margin / Sales ) x 100

Q: Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: TB MC Qu. 18-93 (Static) Use the following information... Use the following information to determine…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: $550 $231 (a) % (b) $450 (c) $216 % (d) (e) $ (f) $360 20 % %24 %24 %24

A: The contribution margin is calculated by deducting the variable cost from the selling price.

Q: Sales Revenue Less: Variable Expenses Contribution Margin Less: Fixed Expenses Operating Income 75…

A: Contribution Margin Ratio is calculated with the help of following formula Contribution Margin Ratio…

Q: RL437 Corporation’s info is bel ow: Sales $509,000 VC $101,800 FC $22,730 NOI $384,470 Q. How much…

A: Sales = $50,9000Variable cost = $101,800 Fixed cost = $22,730 NOI = $384,470 Contribution margin =…

Q: fixed costs

A: The break-even point in business, specifically cost accounting means the point at which total…

Q: 0 100 200 300 400 500 600 R(q) 0 540 1080 1620 2160 2700 3240 C(g) 695 850 1000 1090 1325 1860 2590…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Revenue $4500 Variable non manufacturing$900 Variable Manufacturing Costs$810Fixed manufacturing…

A: The cost of goods sold includes the cost of goods that are sold during the period. The gross margin…

Q: Selling price per unit $250 $400 $1 500 Variable cost per unit $80 $200 $800 Expected unit sales…

A: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: Using the format dicaksed in Exthbit 21.10 and Exhibit 21.11 of your textbook or formulas solve for…

A: Cost variances relates to the cost management technique to do the profit assessment.

Q: $300.000 $210.000 $340.000 $850.000 ts $180.000 $180.000 $220.000 $590,000 50.000 50000 40.000…

A: Solution: Change in net income = Avoidable fixed cost - contribution margin lost on Product G = 0 -…

Q: Variable Costs $135,000 ??? Fixed Costs $25,000 ??? Mixed Costs $16,000 ??? Total Costs $176,000…

A: The total fixed costs remains constant for each level of production but total variable costs changes…

Q: Total Contribution Margin Break-Even Sales Revenue Sales Revenue Variable Expenses Fixed Expenses…

A: Formula: Total contribution margin = Sales revenue - variable expenses

Q: At a break-even point of 450 units, variable costs were $675 and fixed costs were $405. What will…

A: Contribution per unit is the amount of per unit earnings after deducting variable cost from sale. It…

Q: Service Department A Service Department B Producing Department C Producing Department D Proportion…

A: Lets understand the basics.Cost allocation methods are as follows:-(1) Direct method(2) Step down…

Q: Price/unit $ 2$ $ $ 14 Variable cost/unit 4 Total fixed cost 400,000 500,000 Target profit Calculate…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Departmental Cost Allocation Robinson Products Company has two service departments(S1 and S2) and…

A: 1.

Q: Consider the following information from the income statement of Leighton Company: Contribution…

A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. At…

Q: Units: 131 Sales $7862 Variable Costs $590 Fixed Costs $318 If the company reduces its selling…

A: Impact on net income is calculated by comparing the net income under revised terns and net income…

Q: Fixed expenses of the business 345,000 Unit selling price for a single item sold is 360 Variable…

A: SAfety Marging = [Production Level - Breakeven Point]/Production Level

Q: The sales and cost data for two companies in the transportation industry are as follows: X Company…

A: For X Company: Annual Break-even point in sales dollars = Fixed cost/Contribution margin ratio =…

Q: Amount Per Unit Sales Variable expenses Contribution margin $300,000 $40 120,000 16 180,000 $24…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: Under variable costing method, the variable manufacturing cost is considered as product cost and…

Q: Cost pool pool 1 pool 2 pool 3 Total cost in cost pool $58,200 $18,000 $7,500 $63,000 $88,500…

A: Allocation of cost is one of the most important activities in cost accounting. It enables…

Q: 10m 2 A $ Budgeted overhead costs before any 3 interdepartment cost allocations Support work…

A: Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…

Q: Price $800 $350 EA Costs $336 (c) Margin Margin Ratio SA (a) $147 (e) $ (f) $800 40 40

A: Margin = Price - Costs Margin ratio = (Margin/Price) aMargin = 800-336 Margin = $ 464/. bMargin…

Q: Assume that sales are predicted to be $15,000, the expected contribution margin is $6,000, and a net…

A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio of…

Question

Blossom Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income
statements for a recent quarter's activity are presented below.
Sales
Variable costs
Contribution margin
Fixed costs
Net income
Tablet Division
$671,000
496,540
$174,460
MP3 Player Division
$429,000
253,110
$175,890
Total
$1,100,000
749,650
350,350
128,037
$222,313

Calculate the company's break-even point in sales dollars. (Do not round intermediate calculations; round final answer to 0 decimal
places, e.g. 1,526.)
Break-even point $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Determine the missing amounts Unit Selling Price$250 $500 (e)Unit Variable Costs$180 (c) (f)Unit Contribution Margin(a) $200 $330Contribution Margin Ratio(b) (d) 30%
Use formula as needed. Do not hardcode. 3. Calculate the following for both divisions using appropriate formula: - Variable costs per unit - Contribution margin per unit - Break-even units Use Roundup formula in Excel to round up to full unit. The general roundup formula for break-even will be: =ROUNDUP(Total Fixed costs/Contribution margin per unit,0). - Break-even sales in dollar - Margin of safety in percentage - Operating leverage not income
Required Information [The following information applies to the questions displayed below.] Use the following information: P1 P2 Department Cost Service 1 (51) $115,000 Service 2 (52) 47,000 Production 1 375,000 (P1) Production 2 (P2) Total 246,000 $783,000 Percentage Service Provided to S1 0% S2 P1 P2 25% 30% 45% 20 60 20 0 What percentage of S1's costs is allocated to P1 and to P2 under the direct method? Service Department 1's Costs
Sales $1248000 Contribution margin 466560 Total direct fixed costs 405000 Total operating assets Jan. 1, 2022 740000 Total operating assets Dec. 31, 2022 799000 Bramble Company's desired return 12% What is Bramble Company's ROI, rounded to the nearest whole number? 8% O 12% O 55% O 51%
We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000| Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point based on the current sales mix? A. $600,000 B. $75,000 C. $138,440 D. $240,000 4.
Part 2 – CVP Analysis The condensed income statement of the Happy Valley Inn is as follows" Variable Costs $1,800,000 1,250,000 200,000 $3,250,000 Fixed Costs Department Income $3,300,000 200,000 150,000 S3,650,000 900,000 1,400,000 1,350,000 472,500 Department Revenue S6,000,000 2,500,000 500,000 $9,000,000 Room $900,000 1,050,000 150,000 $2,100,000 Food and Bev Other Total Other Variable Other Fixed Costs Pre-Tax Income Tax Net Income 877,500 1) What is the contribution ratio for the Happy Valley Inn? 2) What is the break-even level of Sales for the Happy Valley Inn? 3) What level of sales are needed to earn $1,000,000 in net income? 4) What level of Room Sales are needed to earn S1,000,000 in net income? 5) What would be the projected net income at $10,000,000 in Sales?
X Company Y Company Amount Percent Amount Percent Sales $ 148,000 100.00 $ 148,000 100.00 Variable costs 88,800 60.00 44,400 30.00 Contribution margin 59,200 40.00 103,600 70.00 Fixed costs 34,150 70,200 Operating income (Tig) 25,050 33,400 Y Company's margin of safety (MOS) in sales dollars (rounded) is:
If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what is the contribution margin ratio? Oa. 76% Оb. 72% Ос. 28% Od. 24%
Material costs Utilities costs Review costs Alternative 1 $86,000 $42,000 $39,000 $49,000 Alternative 2 $86,000 $41,100 $41,100 $49,000 Direct labor costs Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives. a. Material cost Utilities cost Review cost Direct labor cost b. Differential cost
Sales VC Complete the shaded cells below: Year 1 $32,960,000 13,440,000 Year 2 Year 3 Year 4 $54,590,000 22,260,000 $44,805,000 18,270,000 $40,170,000 Year 5 $27,810,000 16,380,000 11,340,000 Fixed costs 5,300,000 5,300,000 5,300,000 5,300,000 5,300,000 Dep EBT 5,501,650 $8,718,350 9,428,650 6,733,650 4,808,650 3,438,050 $17,601,350 $14,501,350 $13,681,350 $7,731,950 Tax NI $6,800,313 +Dep OCF 1,918,037 5,501,650 $12,301,963 3,872,297 $13,729,053 5,501,650 $19,230,703 3,190,297 3,009,897 1,701,029 $11,311,053 $10,671,453 $6,030,921 5,501,650 $16,812,703 5,501,650 $16,173,103 5,501,650 $11,532,571 NWC Beg End $0 0 NWC CF $6,592,000 $10,918,000 $8,961,000 $8,034,000 $5,562,000 Net CF Salvage BV of equipment Taxes Salvage CF Net CF Time 0 2 3 5 12345
If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is the contribution margin ratio? Oa. 69% Ob. 35% Oc. 65% Od. 31%
Sales revenue Variable costs: Production Administrative Contribution margin Fixed costs Operating profit Status Quo 45,000 Units $ 1,170,000.0 X S $ $ GA 607,500 X 112,500 X 45,000.0 X $ 292,500.0 X 63,000.0 X S Costs and Revenues (Thousands of Dollars) Alternative 55,000 Units 1,370,000.0 $ 200,000.0 higher Difference 742,500 X 135,000 higher 112,500 X none 515,000.0 $ 65,000.0 higher 292,500.0 X none 128,000.0 $ 65,000.0 higher Required B > < Required A