Required information PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8) [The following information applies to the questions displayed below.] Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: Sales Operating expenses: Variable expenses Tixed expenses Total expenses Net Incone $2,000,000 3,000,000 $ 8,000,000 5,000,000 $3,000,000 PR 7-41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars. 2. Calculate the firm's break-even point for the year in sales dollars. 3. What is the company's margin of safety for the year? 4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year. 5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year. 6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income i statement.
Required information PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8) [The following information applies to the questions displayed below.] Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: Sales Operating expenses: Variable expenses Tixed expenses Total expenses Net Incone $2,000,000 3,000,000 $ 8,000,000 5,000,000 $3,000,000 PR 7-41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars. 2. Calculate the firm's break-even point for the year in sales dollars. 3. What is the company's margin of safety for the year? 4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year. 5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year. 6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income i statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need help with last three parts
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![Required information
PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8)
[The following information applies to the questions displayed below.]
Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales
of 160,000 units, is as follows:
Sales
Operating expenses:
Variable expenses
Tixed expenses
Total expenses
Net Income
$ 2,000,000
3,000,000
Required 2
$ 8,000,000
PR 7-41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars.
2. Calculate the firm's break-even point for the year in sales dollars.
3. What is the company's margin of safety for the year?
4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year.
5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year.
6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income
statement
5,000,000
$3,000,000
Complete this question by entering your answers in the tabs below.
Required 3 Required 4
Required 5 Required 6](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff38489f5-c59a-43ed-8679-ac3c0b7d5ecf%2F9c1b6da7-3d4a-4cc6-a2d0-1994bdaaafe2%2F8uhxmd4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
PR 7-41 (Static) CVP Graph; Cost Structure; Operating Leverage (LO 7-2, 7-3, 7-4, 7-8)
[The following information applies to the questions displayed below.]
Athletico Incorporated manufactures warm-up suits. The company's projected income for the coming year, based on sales
of 160,000 units, is as follows:
Sales
Operating expenses:
Variable expenses
Tixed expenses
Total expenses
Net Income
$ 2,000,000
3,000,000
Required 2
$ 8,000,000
PR 7-41 (Static) Part 2: Calculate the firm's break-even point for the year in sales dollars.
2. Calculate the firm's break-even point for the year in sales dollars.
3. What is the company's margin of safety for the year?
4. Compute Athletico's operating leverage factor, based on the budgeted sales volume for the year.
5. Compute Athletico's required sales in dollars in order to earn income of $4,500,000 in the coming year.
6. Show the Athletico's cost structure and indicate the percentage of the Athletico's revenue represented by each item on the income
statement
5,000,000
$3,000,000
Complete this question by entering your answers in the tabs below.
Required 3 Required 4
Required 5 Required 6
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