In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of$825,000.Required:1. What is the company's CM ratio?CM ratio%A2. Using the CM ratio, calculate the break-even level of sales in dollars.Break-even level of sales in dollor3. What is the break-even level of sales in units?Break-even level of sales in unitsunits

Breakeven is the point at which an entity is in a position of no profit and no loss. At this point,…

Answered: In March, James Electronics had sales…

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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Dhapa
variable expense is $12 per unit. The company Required: 1. 2. 3. 4. Solve for the company's break-even point in unit sales using the equation method. Solve for the company's break-even point in sales dollars using the equation method and CM ratio. Solve for the company's break-even point in unit sales using the formula method. Solve for the company's break-even point in sales dollars using the formula method and CM ratio. EXERCISE 6-8 Compute the Margin of Safety [LO7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below: Selling price $30 per unit Variable expenses $20 per unit Fixed expenses Unit sales $7,500 per month 1,000 units per month Required: 1. Compute the company's margin of safety. 2. Compute the company's margin of safety as a percentage of its sales. EXERCISE 6-9 Compute and Use the Degree of Operating Leverage [L08] Engberg Company installs lawn sod in home yards. The company's most recent…
Dhapa
Last month when Holiday Creations, Incorporated, sold 38,000 units, total sales were $152,000, total variable expenses were $127,680, and fixed expenses were $37,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 500 units and total sales by $2,000? (Do not round intermediate calculations.) 1. Contribution margin ratio 2. Estimated change in net operating income %
Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $116,440, and fixed expenses were $38,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 600 units and total sales by $2,400? (Do not round intermediate calculations.)
I need help with parts 1 and 2
Vikrambahi
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales Operating expenses: Variable expenses Fixed expenses Total expenses Operating profit $28,800,000 9,400,000 $48,000,000 1. Breakeven point in sales dollars 2. Required sales in dollars 3. Breakeven point in sales dollars 38,200,000 $ 9,800,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $13,000,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 14% ? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Gadubhai
Subject: accounting

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