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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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)
(b)
Answer the following independent questions.
(c)
What was the company's break-even sales dollars in 2021?
735,000
Your answer is correct.
eTextbook and Media
315,000
360,000
($45,000)
Break-even point in sales dollars $
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 Medial
Number of units sold
1,200,000
12,000
Attempts: 3 of 5 used
If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unchanged, how many
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. 52.75. Final answer
to O decimal places, e.g. 5,275.)
units
Attempts: 1 of 5 used
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