Maple Enterprises sells a single product with a selling price of $80 and variable costs per unit of $32. The company's monthly fixed expenses are $28,800. A. What is the company's break-even point in units? Break-even units fill in the blank 48108800dffc040_1 units B. What is the company's break-even point in dollars?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Maple Enterprises sells a single product with a selling price of $80 and variable costs per unit of $32. The company's monthly fixed expenses are $28,800.

A. What is the company's break-even point in units?

Break-even units fill in the blank 48108800dffc040_1 units

B. What is the company's break-even point in dollars?

Break-even dollars $fill in the blank 48108800dffc040_2

C. Construct a contribution margin income statement for the month of September when they will sell 800 units. Use a minus sign for a net loss if present.

 
 
Income Statement
  $fill in the blank 74e529089f92058_2
  fill in the blank 74e529089f92058_4
  $fill in the blank 74e529089f92058_6
  fill in the blank 74e529089f92058_8
  $fill in the blank 74e529089f92058_10

D. How many units will Maple need to sell in order to reach a target profit of $48,000?

New break-even units fill in the blank 946f62fa600f077_1 units

E. What dollar sales will Maple need in order to reach a target profit of $48,000?

New break-even dollars $fill in the blank 946f62fa600f077_2

F. Construct a contribution margin income statement for Maple that reflects $168,000 in sales volume.

 
 
Income Statement
  $fill in the blank 7a73b6ff6019fdf_2
  fill in the blank 7a73b6ff6019fdf_4
  $fill in the blank 7a73b6ff6019fdf_6
  fill in the blank 7a73b6ff6019fdf_8
  $fill in the blank 7a73b6ff6019fdf_10
Expert Solution
trending now

Trending now

This is a popular solution!

video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education