Gurevitz Inc sold 100,000 calculators during 2016: Sales $ 2,000,000 Variable costs: Materials Order processing Billing labor Selling expenses Fixed costs $ 380,000 150,000 110,000 60,000 $ 1,000,000 Instructions: 1 Determine the breakeven point in units and dollars 2 Determine the Cotribution margin ratio and the variable cost ratio 3 Determine the sales $ amoount for a target net income of $125,500
Gurevitz Inc sold 100,000 calculators during 2016: Sales $ 2,000,000 Variable costs: Materials Order processing Billing labor Selling expenses Fixed costs $ 380,000 150,000 110,000 60,000 $ 1,000,000 Instructions: 1 Determine the breakeven point in units and dollars 2 Determine the Cotribution margin ratio and the variable cost ratio 3 Determine the sales $ amoount for a target net income of $125,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gurevitz Inc sold 100,000 calculators during 2016:
Sales
$ 2,000,000
Variable costs:
Materials
Order processing
Billing labor
Selling expenses
Fixed costs
$ 380,000
150,000
110,000
60,000
$ 1,000,000
Instructions:
1 Determine the breakeven point in units and dollars
2 Determine the Cotribution margin ratio and the variable cost ratio
3 Determine the sales $ amoount for a target net income of $125,500
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Step 1: Introduce to break even point
VIEWStep 2: Working for contribution margin per unit
VIEWStep 3: Working for break even point in units and dollars
VIEWStep 4: Working for contribution margin ratio and variable cost ratio
VIEWStep 5: Working for sales required for target net income
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