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Student Name:
Class:
270,000$ «- Correct!
60$ «- Correct!
4,500 «- Correct!
270,000$ «- Correct!
30.00% «- Correct!
900,000$ «- Correct!
900,000$ «- Correct!
630,000 «- Correct!
270,000$ «- Correct!
270,000 «- Correct!
$0 «- Correct!
Contribution margin ratio
Fixed costs
Break-even in sales units:
Break-even in sales dollars:
Net income
Fixed costs
Contribution margin
Variable costs
Sales
Break-even point in sales dollars:
(at Break-Even) Product XT
Contribution Margin Income Statement
XCITE EQUIPMENT CO.
Instructor
Break-even point in units:
Contribution margin per unit
Fixed costs
Problem 18-02A
McGraw-Hill/Irwin
XCITE EQUIPMENT CO.
200$
270,000$
700,000
140$
4,500
Given Data P18-02A:
Check figures:
(1) Break-even sales units
XCITE EQUIPMENT CO.
Selling price per 100 yards
Fixed costs
Maximum capacity in yards
Forecasted variable costs per 100 yards
Student Name:
Class:
4.00$ «- Correct!
2.00 «- Correct!
1.00 «- Correct!
0.50 «- Correct!
7.50$ «- Correct!
70% «- Correct!
525,000$ «- Correct!
750,000$ «- Correct!
30.00$ «- Correct!
22.50 «- Correct!
75% «- Correct!
525,000$ «- Correct!
700,000$ «- Correct!
Computation of Break-Even
BERTRAND COMPANY
Forecasted Contribution Margin Income Statement
BERTRAND COMPANY
New variable costs and expenses for both Plans:
Materials costs
Direct labor cost
Overhead variable costs
Contribution margin ratio
Selling and admin. costs
Total variable costs
Plan 1:
Break-even (dollars)
Contribution margin ratio
Total fixed costs
Break-even (dollars)
Total fixed costs
Problem 18-06A
McGraw-Hill/Irwin
Instructor
Plan 2:
Selling price
Contribution margin
40,000
25$
200,000$
325,000$
8.00$
5.00$
1.00$
0.50$
50%
60%
45,000
20%
10%
30%
750,000$
700,000$
122,500$
199,500$
Cost decreases using new material:
Material costs
BERTRAND COMPANY
Units sold
Price per unit
Fixed manufacturing costs
Fixed selling and administrative costs
Variable costs per unit:
Direct labor costs
Factory capacity in units
Plan 1:
Price and sales levels do not change
Plan 2:
Given Data P18-06A:
Material
Direct labor (paid on completed units)
Variable overhead costs
Variable selling and administrative costs
Break-even: Plan 2
(2) Net income: Plan 1
Net income: Plan 2
Price increase
Unit sales volume decrease
Income tax rate
Check figure:
(1) Break-even: Plan 1
