Tor Problem 2. A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold... Sales revenue Variable manufacturing expense. Fixed manufacturing expense.... Variable selling and administrative expense.. Fixed selling and administrative expense...... Net operating income... 260,000 $2,106,000 $975,000 $486,000 $260,000 $274,000 $111,000 ldor'! a. The company's break-even in bundles is: b. The company's contribution margin ratio is: c. The company's margin of safety is: 000.00 d. If the company desired Net Operating Income of $250,000, how many bundles would need to be sold? How much sales revenue would need to be generated?
Tor Problem 2. A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold... Sales revenue Variable manufacturing expense. Fixed manufacturing expense.... Variable selling and administrative expense.. Fixed selling and administrative expense...... Net operating income... 260,000 $2,106,000 $975,000 $486,000 $260,000 $274,000 $111,000 ldor'! a. The company's break-even in bundles is: b. The company's contribution margin ratio is: c. The company's margin of safety is: 000.00 d. If the company desired Net Operating Income of $250,000, how many bundles would need to be sold? How much sales revenue would need to be generated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2. A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold...
Sales revenue
Variable manufacturing expense.
Fixed manufacturing expense....
Variable selling and administrative expense..
Fixed selling and administrative expense......
Net operating income...
260,000
$2,106,000
$975,000
$486,000
$260,000
$274,000
$111,000
ldor'!
a. The company's break-even in bundles is:
b. The company's contribution margin ratio is:
c. The company's margin of safety is:
000.00
d. If the company desired Net Operating Income of $250,000, how many bundles would
need to be sold? How much sales revenue would need to be generated?
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Step 1: Introducing Breakeven Point of Sales & Margin of Safety
VIEWStep 2: Calculate the Contribution Margin Ratio, Contribution Margin Per Unit & Total Fixed Cost
VIEWStep 3: Calculate the Breakeven Point of in Bundles
VIEWStep 4: Calculate the Margin of Safety
VIEWStep 5: Calculate the Desired Sales
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