Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula : C o n t r i b u t i o n M a r g i n = S a l e s p r i c e – V a r i a b l e c o s t s Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows: B r e a k e v e n p o i n t ( U n i t s ) = T o t a l F i x e d c o s t s C o n t r i b u t i o n m a r g i n p e r u n i t B r e a k e v e n p o i n t ( D o l l a r ) = T o t a l F i x e d c o s t s C o n t r i b u t i o n m a r g i n r a t i o Requirement-1: To calculate: The breakeven units using the equation approach

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the cost of the unsold merchandise on these financial accounting question?

What are the proceeds to Brighton on these financial accounting question?

Bigco Corporation is one of the nation's leading distributors of food and related products to restaurants, universities, hotels, and other customers. A simplified version of its recent income statement contained the following items (in millions). Cost of sales es Interest expense Income taxes Net earnings Sales Earnings before income taxes Selling, general, and administration expense Other revenues Total expenses (excluding income taxes) Total revenues $ 11,601 249 39 1,378 16,330 1,627 3,493 430 15,133 16,760 Prepare an income statement for the year ended June 30, current year. (Hint: First order the items as they would appear on the income statement and then confirm the values of the subtotals and totals.) Note: Enter your answers in millions rather than in dollars (for example, 5,000 million should be entered as 5,000 rather than 5,000,000). Revenues: Total revenues Expenses: BIGCO CORPORATION Income Statement (in millions) $ 0

Answer 2

Question

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Answer 6

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

Answer 7

Chapter 21, Problem P21.58BPGB

To determine

Concept Introduction:

Contribution margin: Contribution margin is the difference between sales price and variable costs. It is calculated with the help of following formula:

$C o n t r i b u t i o n M a r g i n = S a l e s p r i c e - V a r i a b l e c o s t s$

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n p e r u n i t}$

$B r e a k e v e n p o i n t (D o l l a r) = \frac{T o t a l F i x e d c o s t s}{C o n t r i b u t i o n m a r g i n r a t i o}$

Requirement-1:

To calculate: The breakeven units using the equation approach

Answer 8

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

Answer 9

To determine

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

Answer 10

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

Answer 11

To determine

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

Answer 12

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Answer 13

To determine

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QC Ch. 21 - Prob. 3QC Ch. 21 - Prob. 4QC Ch. 21 - Prob. 5QC Ch. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QC Ch. 21 - Prob. 9QC Ch. 21 - Prob. 10QC

Requirement-2: To calculate: The Dollar sales to earn the desired income using the contribution margin approach

Requirement-3: To Prepare: The Contribution Margin Income Statement for the year 2016

Requirement-4: To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion

Want to see the full answer?

Chapter 21 Solutions

Requirement-2:

To calculate: The Dollar sales to earn the desired income using the contribution margin approach

Requirement-3:

To Prepare: The Contribution Margin Income Statement for the year 2016

Requirement-4:

To calculate: The breakeven units and breakeven sales $ under the explanation plan and take decision for the expansion