Hello tutor give me answer for the accounting question For the current year ended March 31,Cosgrove Company expects fixed costs of$555,000, a unit variable cost of $62, and aunit selling price of $92.a. Compute the anticipated break-evensales (units).b. Compute the sales (units) required torealize an operating income of $129,000.

Step 1: Define Target SalesTarget sales are the desired level of sales that a business seeks to…

Answered: For the current year ended March 31,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11E

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Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
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For the current year ended March 31, Cosgrove Company expects fixed costs of $555,000, a unit variable cost of $62, and a unit selling price of $92. a. Compute the anticipated break-even sales (units). b. Compute the sales (units) required to realize an operating income of $129,000.