11th Edition

ISBN: 9780133856781

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…

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Textbook Question

Chapter 21, Problem P21.49APGA

Calculating cost-volume-profit elements

The budgets of four companies yield the following information:

Company

	Up	Down	Left	Right
	$ 2,187,500	$ (d)	$ 375,000	$ (i)
Sales Costs	(a)	77,000	225.000	374,400
Vairable Costs Field Costs	(b)	216,000	236,000	(k)
Operating income (Loss)	256,700	(e)	(g)	85,400
Units Sold	125,000	14.000	(h)	(i)
Contribution Margin per Unit	$ 3.50	$ (f)	$ 75.00	$ 18.00
Zrrtntwwyi Margin Ratio	( c )	80%	(i)	20%

Requirements

Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.)
Which company has the lowest breakeven point in sales dollars?
What causes the low breakeven point?

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Chapter 21, Problem E21A.48E

Chapter 21, Problem P21.50APGA

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Chapter 21 Solutions

Horngren's Accounting (11th Edition)

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