### Blossom Machine Company CVP Income Statement for 2021The CVP income statement for Blossom Machine Company for the year 2021 is presented below.#### Blossom Machine Company**Income Statement****For the Year Ended December 31, 2021**- **Sales (42,000 units):** $1,050,000- **Variable expenses:** $735,000- **Contribution margin:** $315,000- **Fixed expenses:** $360,000- **Net income (loss):** ($45,000)### Independent Questions**(a) What was the company's break-even sales dollars in 2021?**- **Break-even point in sales dollars:** $ ________Explanation of Items in the Statement:- **Sales:** The total revenue generated from selling 42,000 units.- **Variable expenses:** Costs that vary directly with the level of production or sales volume.- **Contribution margin:** The difference between sales and variable expenses. It represents the amount available to cover fixed expenses and provide profit.- **Fixed expenses:** Costs that do not vary with production or sales volume.- **Net income (loss):** The residual profit or loss after subtracting fixed expenses from the contribution margin. Here, the company has a net loss of $45,000.

Break-even point sales dollars = Fixed Costs/[(Sales-Variable Costs)/sales].

The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses Contribution margin Fixed expenses Net income (loss) 735,000 (a) 315,000 360,000 ($45,000) Answer the following independent questions. What was the company's break-even sales dollars in 2021? Break-even point in sales dollars $

The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses Contribution margin Fixed expenses Net income (loss) 735,000 (a) 315,000 360,000 ($45,000) Answer the following independent questions. What was the company's break-even sales dollars in 2021? Break-even point in sales dollars $

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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