This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
349
P11–3
1. Break-Even Sales (units) = arginMonContributiUnit
CostsFixed
3.
350
P11–4
1.
Break-Even Units:
Break-Even Dollars:
Contribution Margin Ratio = $400 – $240
$400 = 40%
$5,000,000
$4,000,000
Operating
Profit Area
Sales
351
P11–4, Continued
2.
a. b.
8,000 units 10,000 units
$5,000,000
$4,000,000
$3,488,000
$3,200,000
b
Operating
Profit Area
352
P11–4, Continued
3.
Break-Even (units):
$5,000,000
$4,000,000
$0
02,000 4,000 6,000 8,000 10,000
7,800
Units of Sales
Loss Area
Operating
Profit Area
353
P11–4, Concluded
4.
a. b.
8,000 units 10,000 units
354
P11–5
(Overall product is labeled E.)
1. Unit selling price of E [($400 × 80%) + ($800 × 20%)] ................. $480
5. The overall enterprise break-even point decreased from 7,500 units to 5,000
355
P11–6
1.
ORGANIC HEALTH CARE PRODUCTS INC.
Estimated Income Statement
For the Year Ended December 31, 20Y8
Sales (400,000 × $25) ......................................... $ 10,000,000
Expenses:
Selling expenses:
Advertising .............................................. $ 1,450,000
356
P11–6, Continued
2. Contribution Margin Ratio = Sales – Variable Costs
Sales
3. Break-Even Sales (units) = Margin onContributiUnit
Costs Fixed
Trusted by Thousands of
Students
Here are what students say about us.
Resources
Company
Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.