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 735,000 Contribution margin Fixed expenses Net income (loss) (a) Answer the following independent questions. (b) 360,000 ($45,000) What was the company's break-even sales dollars in 2021? 315,000 Your answer is correct. Break-even point in sales dollars $ (c) eTextbook and Media Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Media 1,200,000 12,000 Atte Atte If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unch units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 5. to O decimal places, e.g. 5,275.)

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 735,000 Contribution margin Fixed expenses Net income (loss) (a) Answer the following independent questions. (b) 360,000 ($45,000) What was the company's break-even sales dollars in 2021? 315,000 Your answer is correct. Break-even point in sales dollars $ (c) eTextbook and Media Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Media 1,200,000 12,000 Atte Atte If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unch units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 5. to O decimal places, e.g. 5,275.)

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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