Sandhill Corporation sells a single product for $58. It year 2022: Net sales $490,000 Selling expenses-variable $19,600 Direct materials 88,200 Selling expenses-fixed 19,600 Direct labour 58,800 Administrative expenses-variable 9,800 Manufacturing overhead-variable 19,600 Administrative expenses-fixed 9,800 Manufacturing overhead-fixed 29,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sandhill Corporation sells a single product for $50. Its management estimates the following revenues and costs for the
year 2022:
Net sales
$490,000
Selling expenses-variable
$19,600
Direct materials
88,200
Selling expenses-fixed
19,600
Direct labour
58,800
Administrative expenses-variable
9,800
Manufacturing overhead-variable
19,600
Administrative expenses-fixed
9,800
Manufacturing overhead-fixed
29,400
(a)
(b)
Your answer is correct.
Assuming fixed costs and net sales are spread evenly throughout the year, determine Sandhill's monthly break-
even point in units and dollars. (Round answers to O decimal places, e.g. 5,275.)
Monthly break-even in units
163 units
Monthly break-even in dollars
$
8,167
eTextbook and Media
Attempts: 2 of 3 used
Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income.
(Round answers to O decimal places, e.g. 15 or 15%.)
Contribution margin ratio
%
Annual margin of safety ratio
Annual operating Income
$
eTextbook and Media
Save for Later
%
Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:Sandhill Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2022: Net sales $490,000 Selling expenses-variable $19,600 Direct materials 88,200 Selling expenses-fixed 19,600 Direct labour 58,800 Administrative expenses-variable 9,800 Manufacturing overhead-variable 19,600 Administrative expenses-fixed 9,800 Manufacturing overhead-fixed 29,400 (a) (b) Your answer is correct. Assuming fixed costs and net sales are spread evenly throughout the year, determine Sandhill's monthly break- even point in units and dollars. (Round answers to O decimal places, e.g. 5,275.) Monthly break-even in units 163 units Monthly break-even in dollars $ 8,167 eTextbook and Media Attempts: 2 of 3 used Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual operating income. (Round answers to O decimal places, e.g. 15 or 15%.) Contribution margin ratio % Annual margin of safety ratio Annual operating Income $ eTextbook and Media Save for Later % Attempts: 0 of 3 used Submit Answer
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