I ONLY NEED #4, 5, & 6 Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials — $26 Direct labor — 17 Factory overhead $265,400 13 Selling expenses: Sales salaries and commissions 55,200 6 Advertising 18,700 — Travel 4,100 — Miscellaneous selling expense 4,600 5 Administrative expenses: Office and officers' salaries 53,900 — Supplies 6,600 2 Miscellaneous administrative expense 6,220 3 Total $414,720 $72 It is expected that 8,960 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 11,000 units. Required: 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 - Select - $ Cost of goods sold: - Select - $ - Select - $ - Select - $ Total cost of goods sold $ Gross profit $ Expenses: Selling expenses: - Select - $ - Select - $ - Select - $ - Select - $ Total selling expenses $ Administrative expenses: - Select - $ - Select - $ - Select - $ Total administrative expenses $ Total expenses $ Operating income $ Question Content Area 2. What is the expected contribution margin ratio? Round to the nearest whole percent. fill in the blank 1 % 3. Determine the break-even sales in units and dollars. Units fill in the blank 2 units Dollars $fill in the blank 3 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $ fill in the blank 4 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: $ fill in the blank 5 Percentage: (Round to the nearest whole percent.) fill in the blank 6 % 6. Determine the operating leverage. Round to one decimal place. fill in the blank 7 net income = $230,400 50% Break even units = 5,760 Dollars = $829,440
I ONLY NEED #4, 5, & 6
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
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Estimated Fixed Cost |
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Estimated Variable Cost (per unit sold) |
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Production costs: |
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Direct materials |
— |
$26 |
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Direct labor |
— |
17 |
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Factory |
$265,400 |
13 |
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Selling expenses: |
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Sales salaries and commissions |
55,200 |
6 |
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Advertising |
18,700 |
— |
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Travel |
4,100 |
— |
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Miscellaneous selling expense |
4,600 |
5 |
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Administrative expenses: |
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Office and officers' salaries |
53,900 |
— |
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Supplies |
6,600 |
2 |
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Miscellaneous administrative expense |
6,220 |
3 |
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Total |
$414,720 |
$72 |
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It is expected that 8,960 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 11,000 units.
Required:
1. Prepare an estimated income statement for 20Y7.
Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7
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- Select - |
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$ |
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Cost of goods sold: |
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- Select - |
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$ |
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- Select - |
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$ |
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- Select - |
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$ |
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Total cost of goods sold |
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$ |
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Gross profit |
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$ |
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Expenses: |
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Selling expenses: |
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- Select - |
$ |
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- Select - |
$ |
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- Select - |
$ |
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- Select - |
$ |
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Total selling expenses |
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$ |
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Administrative expenses: |
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- Select - |
$ |
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- Select - |
$ |
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- Select - |
$ |
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Total administrative expenses |
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$ |
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Total expenses |
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$ |
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Operating income |
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$ |
Question Content Area
2. What is the expected contribution margin ratio? Round to the nearest whole percent.
fill in the blank 1 %
3. Determine the break-even sales in units and dollars.
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Units |
fill in the blank 2 units |
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Dollars |
$fill in the blank 3 |
4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?
$ fill in the blank 4
5. What is the expected margin of safety in dollars and as a percentage of sales?
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Dollars: |
$ fill in the blank 5 |
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Percentage: (Round to the nearest whole percent.) |
fill in the blank 6 |
% |
6. Determine the operating leverage. Round to one decimal place.
fill in the blank 7
- net income = $230,400
- 50%
- Break even units = 5,760
Dollars = $829,440
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