The CVP income statement for Jen Company for2022 appears below: Jen COMPANY CVPIncome Statement For the Year EndedDecember 31, 2022Sales (25,000 units) $650,000Variable expenses 227,500Contribution margin 422,500Fixed expenses 456,300Net income (loss) $(33,800)Instructions: Answer the following independentquestions and show computations to supportyour answers:A) How much additional sales revenue does thecompany need to break even in 2022?B) If the company is able to reduce variablecosts by $1.20 per unit in 2023 and other costsand unit revenues remain unchanged, howmany units will the company have to sell inorder to earn a net income of $68,000?

Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…

The CVP income statement for Jen Company for 2022 appears below: Jen COMPANY CVP Income Statement For the Year Ended December 31, 2022 Sales (25,000 units) $650,000 Variable expenses 227,500 Contribution margin 422,500

The CVP income statement for Jen Company for 2022 appears below: Jen COMPANY CVP Income Statement For the Year Ended December 31, 2022 Sales (25,000 units) $650,000 Variable expenses 227,500 Contribution margin 422,500

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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Question

The CVP income statement for Jen Company for
2022 appears below: Jen COMPANY CVP
Income Statement For the Year Ended
December 31, 2022
Sales (25,000 units) $650,000
Variable expenses 227,500
Contribution margin 422,500
Fixed expenses 456,300
Net income (loss) $(33,800)
Instructions: Answer the following independent
questions and show computations to support
your answers:
A) How much additional sales revenue does the
company need to break even in 2022?
B) If the company is able to reduce variable
costs by $1.20 per unit in 2023 and other costs
and unit revenues remain unchanged, how
many units will the company have to sell in
order to earn a net income of $68,000?

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