Prima Step Co. produces sports socks. The company has fixed costs of $105,000 and variable costs of $1.05 per package. Each package sells for $2.10.Requirements1.Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.)2.Find the breakeven point in units and in dollars, using the contribution margin approach.%Requirement 2. Find the breakeven point in units and in dollars, using the contribution margin approach.Begin by selecting the labels and entering the amounts to find the breakeven point in units, using the contribution margin approach. (Enter amounts in the formula to two decimal places. Enter a "0" for any zeroamounts. Abbreviation used: CM = contribution margin.)Required sales in units+Now find the breakeven point in dollars using the contribution margin approach. Begin by selecting the formula, and in the next step, enter the amounts and calculate breakeven point in dollars. (Enter a "0" for anyzero amounts.)Required sales in dollars++%Activate WindowsChoose from any list or enter any number in the input fields and then continue to the next question.Go to Settings to activate Windows. Prima Step Co. produces sports socks. The company has fixed costs of $105,000 and variable costs of $1.05 per package. Each package sells for $2.10.Requirements1.Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.)2.Find the breakeven point in units and in dollars, using the contribution margin approach.Requirement 1. Compute the contribution margin per package and the contribution margin ratio.Begin by selecting the labels and entering the amounts to compute the contribution margin per package. (Round all amounts to two decimal places. Abbreviation used: CM = contribution margin.)CM per unitNow select the labels and enter the amounts to calculate the contribution margin ratio. (Enter amounts in the formula to two decimal places. Enter the contribution margin ratio as a whole percentage, X%.Abbreviation used: CM = contribution margin.)CM ratio%Requirement 2. Find the breakeven point in units and in dollars, using the contribution margin approach.Activate WindowsChoose from any list or enter any number in the input fields and then continue to the next question.Ge te Settings to activate Windows

contribution margin per unit: selling price per unit - variable cost per unit Contribution margin: contribution / sales x 100 Break even point in units: [Fixed cost + Target profit]/ Contribution Margin per unit Break even point in dollars: [Fixed cost + Target profit]/ contribution Margin RatioCompute contribution Margin per package and the contribution Margin Ratio Begin by selecting the labels, and entering the amounts to compute the contribution Margin per package. Selling Price - Variable costs = CM per unit $2.10 - $1.05 = $1.05 Now select the labels and enter the amounts to calculate the contribution Margin ratio Contribution / Sales = CM Ratio 1.05 / 2.1 = 50% Find the breakeven point in units and dollars, using contribution Margin Approach Begin by selecting labels and entering amounts to calculate the break even points in units, using the contribution margin approach (Fixed Cost + Target Profit) / CM per unit = Required Sales in units $105,000 + 0 / $1.05 = $100,000 Now find the breakeven point in dollars using contribution Margin approach. Begin by selecting the formula and in next step, enter the amounts and calculate break point in dollars. (Fixed Cost + Target Profit) / CM per unit = Required Sales in dollars $105,000 + 0 / 50% = 210000

Business

Accounting

Prima Step Co. produces sports socks. The company has fixed costs of $105,000 and variable costs of $1.05 per package. Each package sells for $2.10. Requirements 1. Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach. ] = O% Requirement 2. Find the breakeven point in units and in dollars, using the contribution margin approach. Begin by selecting the labels and entering the amounts to find the breakeven point in units, using the contribution margin approach. (Enter amounts in the formula to two decimal places. Enter a "0" for any zero amounts. Abbreviation used: CM = contribution margin.) Required sales in units Now find the breakeven point in dollars using the contribution margin approach. Begin by selecting the formula, and in the next step, enter the amounts and calculate breakeven point in dollars. (Enter a "0" for a zero amounts.) = Required sales in dollars Activate Windows Chooce from a ny lict contor lde and thon continuo to the noxt quoction

Prima Step Co. produces sports socks. The company has fixed costs of $105,000 and variable costs of $1.05 per package. Each package sells for $2.10. Requirements 1. Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.) 2. Find the breakeven point in units and in dollars, using the contribution margin approach. ] = O% Requirement 2. Find the breakeven point in units and in dollars, using the contribution margin approach. Begin by selecting the labels and entering the amounts to find the breakeven point in units, using the contribution margin approach. (Enter amounts in the formula to two decimal places. Enter a "0" for any zero amounts. Abbreviation used: CM = contribution margin.) Required sales in units Now find the breakeven point in dollars using the contribution margin approach. Begin by selecting the formula, and in the next step, enter the amounts and calculate breakeven point in dollars. (Enter a "0" for a zero amounts.) = Required sales in dollars Activate Windows Chooce from a ny lict contor lde and thon continuo to the noxt quoction

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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