Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2Sunn Company manufactures a single product that sells for $104 per unit and whose variable costs are $78 per unit. The company'sannual fixed costs are $369,200.(1) Prepare a contribution margin income statement at the break-even point.(2) If the company's fixed costs increase by $127,000, what amount of sales (in dollars) is needed to break even?Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a contribution margin income statement at the break-even point.SUNN COMPANYContribution Margin Income Statement (at Break-Even)SalesAmount$0Required 1Required 2 >

Break even point is the formula which determines the minimum number of units or the sales in dollars…

Answered: Exercise 5-10 (Algo) Income reporting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 18-9 (Algo) Contribution margin and break-even LO P2 Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $735,300. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 1 Numerator: (c) Compute the company's break-even point in units. 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = Contribution Margin Ratio Contribution margin ratio = = = = Break-Even Units Break-even units Break-Even Dollars Break-even dollars
Assignment # 3 (From Cost Volume Profit Analysis Mauro Products has a single product, a woven basket whose selling price is $ 15 and whose variable cost is $12 per unit. The company's monthly fixed expenses are $4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method. 2. Solve for the company's break-even point in sales dollars using the equation method and the CM ratio. 3. Solve for the company's break-even point in unit sales using the contribution margin method. 4. Solve for the company's break-even point in sales dollars using the contribution margin method and the CM ratio.
Question 3 The following monthly data in contribution format are available for the Timor Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 227,500 162.500 65,000 45.000 20,000 Per Unit $ $ $ 91 65 26 The company produced and sold 2,500 units during the month and had no beginning or ending inventories. a) What is the current margin of safety? b) Management is concerned about having the funds to pay dividends next quarter. They believe net operating income of $35,000 will be sufficient. How much sales revenue is necessary to achieve this target profit?
Question 2 The following monthly data in contribution format are available for the Ross Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 381,600 304.800 76,800 34,500 42,300 Per Unit $ 5 159 127 32 The company produced and sold 2,400 units during the month and had no beginning or ending inventories. a) What is the current operating leverage? b) Projections indicate that the market will worsen by 15% next month. What is the projected net operating income given this increase?
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
Exercise 20.3 (Algo) Computing Required Sales Volume (LO20-4, LO20-5) The following is information concerning a product manufactured by Ames Brothers. Sales price per unit Variable cost per unit Total fixed manufacturing and operating costs (per month) 78 43 430,000 ces a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.) a. Unit contribution margin b. Break-even units C. Target sales in units 23 NOV 11 itv li 1 W %24 ...
05 quired information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costo Income HUDSON COMPANY Contribution Margin Income Statement. For Year Ended December 31 1. Amount of sales 2. Margin of safety $ 2,716,000 2,037,000 1. Assume Hudson has a target income of $163,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) % 679,000 441,000 $ 238,000
please answer question F and G
Exercise 3-3A (Algo) Contribution margin ratio LO 3-1 Walton Company incurs annual fixed costs of $87,650. Variable costs for Walton's product are $26.00 per unit, and the sales price is $40.00 per unit. Walton desires to earn an annual profit of $52,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Po Po not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units
Kindly answer problem number 10-12
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