Total Sales: $550,000 Less: Variable Expenses Variable CGS Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Materials Used 144,000 Production Labor 202,000 Electricity--production 35,000 Variable admin expenses Electricity--office 10,000 Contribution Margin 159,000 Less: Fixed Expenses Factory Supervision 40,000 Fixed admin expenses Rent 25,000 Office Labor 25,000 Total 50,000 Operating Income 69,000 Break Even Sales $311,320.75 Given: Selling price/unit $25 Selling price/unit 12,453 Use the assumptions above to determine what unit sales are needed to generate an operating income of $75,000. Please include your Excel format or show work. Thank you so much!
Total Sales: $550,000 Less: Variable Expenses Variable CGS Starting Materials 10,000 Materials Purchased 165,000 Ending Materials 31,000 Materials Used 144,000 Production Labor 202,000 Electricity--production 35,000 Variable admin expenses Electricity--office 10,000 Contribution Margin 159,000 Less: Fixed Expenses Factory Supervision 40,000 Fixed admin expenses Rent 25,000 Office Labor 25,000 Total 50,000 Operating Income 69,000 Break Even Sales $311,320.75 Given: Selling price/unit $25 Selling price/unit 12,453 Use the assumptions above to determine what unit sales are needed to generate an operating income of $75,000. Please include your Excel format or show work. Thank you so much!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
Total Sales: |
$550,000 | ||
| Less: Variable Expenses | |||
| Variable CGS | |||
| Starting Materials | 10,000 | ||
| Materials Purchased | 165,000 | ||
| Ending Materials | 31,000 | ||
| Materials Used | 144,000 | ||
| Production Labor | 202,000 | ||
| Electricity--production | 35,000 | ||
| Variable admin expenses | |||
| Electricity--office | 10,000 | ||
| Contribution Margin | 159,000 | ||
| Less: Fixed Expenses | |||
| Factory Supervision | 40,000 | ||
| Fixed admin expenses | |||
| Rent | 25,000 | ||
| Office Labor | 25,000 | ||
| Total | 50,000 | ||
| Operating Income | 69,000 | ||
| Break Even Sales | $311,320.75 | ||
| Given: Selling price/unit | $25 | ||
| Selling price/unit | 12,453 |
Use the assumptions above to determine what unit sales are needed to generate an operating income of $75,000. Please include your Excel format or show work. Thank you so much!
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