Jackson Corporation has asked you to analyze their sales and cost data. They have provided you with the below dashboard:     Determine the unit contribution margin and contribution margin ratio. Unit Contribution Margin = Contribution Margin ratio =   Calculate the break-even point in units and sales dollars. Note: Round your answers to the nearest whole number.   Break-Even Units = Break-Even Sales Dollars =     Compute Jackson’s margin of safety in units and as a percentage of sales. Note: Round your intermediate calculations to the nearest whole number. Round your final percentage of sales answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).   Margin of Safety in units = Margin of Safety as a percentage of 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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Jackson Corporation has asked you to analyze their sales and cost data. They have provided you with the below dashboard:

 

 

Determine the unit contribution margin and contribution margin ratio.

Unit Contribution Margin =

Contribution Margin ratio =

 

Calculate the break-even point in units and sales dollars.

Note: Round your answers to the nearest whole number.

 

Break-Even Units =

Break-Even Sales Dollars =

 

 

Compute Jackson’s margin of safety in units and as a percentage of sales.

Note: Round your intermediate calculations to the nearest whole number. Round your final percentage of sales answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).

 

Margin of Safety in units =

Margin of Safety as a percentage of sales =

Per Unit
$40.00
$30.00
$20.00
$10.00
$0.00
CM Ratio % VS.
Margin of Safety %
60.00%
55.00%
50.00%
45.00%
40.00%
35.00%
30.00%
Contribution Margin Ratio
55.00%
Margin of Safety %
41.29%
$40.00
Sales Price
Per Unit Sales and Variable Cost
Budgeted Sales
Budgeted Sales In Units
300
250
200
150
100
50
0
310
$18.00
Variable Cost Per Unit
Total Fixed Costs
Cost Amount
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
$4,004
Transcribed Image Text:Per Unit $40.00 $30.00 $20.00 $10.00 $0.00 CM Ratio % VS. Margin of Safety % 60.00% 55.00% 50.00% 45.00% 40.00% 35.00% 30.00% Contribution Margin Ratio 55.00% Margin of Safety % 41.29% $40.00 Sales Price Per Unit Sales and Variable Cost Budgeted Sales Budgeted Sales In Units 300 250 200 150 100 50 0 310 $18.00 Variable Cost Per Unit Total Fixed Costs Cost Amount $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $4,004
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