Ex 16-8 Name:
Enter the appropriate amount in the shaded cells in columns C and E.
Variable
1) Contribution margin = Price – costs
= –
=
2) Fixed Contribution
Break-even in units = costs / margin
= /
=
3) Sales
Less: Variable costs
Contribution margin
Less: Fixed costs
Operating income
SOLUTION
Ex 16-8 Name:
Enter the appropriate amount in the shaded cells in columns C and E.
Variable
1) Contribution margin = Price – costs
2) Fixed Contribution
Break-even in units = costs / margin
3) Sales $208,000
Less: Variable costs 140,400
SOLUTION
Ex 16-13 Name:
Enter the appropriate amount in the shaded cells in columns B, D, G, I, K and M.
Sales Average Number of Sales Average
Comission % x Car price X = Salary Salespersons + Comission % x Car price X
xX = + x X
X = + X
X =
X =
Average
=Months x Car Price
= x
=
Current
Proposed
Monthly revenue
Ex 16-13 Name:
Enter the appropriate amount in the shaded cells in columns B, D, G, I, K and M.
6.0% x$75,000 X =$1,600 15 + 2.0% x$75,000 X
$4,500 X =$24,000 +$1,500 X
Average
=Months x Car Price
Current
Proposed
Monthly revenue
SOLUTION
Ex 16-15 Name:
Enter the appropriate amount in the shaded cells in columns F and H.
1) Fixed costs / Unit contribution margin
= /
=
Enter the appropriate amount in the shaded cells in columns D, F, H, and J.
2) Convert after-tax profit to before-tax profit:
After-tax
profit / (1 – Tax rate)
= /
=
X = number of units to sell to yield before-tax profit
Unit selling Unit variable
Price X – Cost X – Fixed Costs
= X – X –
X =
Enter the appropriate amount in the shaded cells in columns D, F, K, and L.
3)
Revenue: Income:
Jan. – May x Revenue
June – Dec. x Variable costs
Fixed costs
Variable costs: Operating income
Jan. – May x Income tax
June – Dec. x After-tax profit
Revenue: Income:
Jan. – May x Revenue
June – Dec. x Variable costs
Fixed costs
Variable costs: Operating income
Jan. – Dec. x Income tax
After-tax profit
Revenue: Income:
Jan. – May x Revenue
June – Dec. x Variable costs
Fixed costs
Variable costs: Operating income
Jan. – Dec. x Income tax
After-tax profit
Alternative C
Break-even units =
Before-tax profit =
Before-tax profit =
Alternative A
Alternative B
Ex 16-15 Name:
Enter the appropriate amount in the shaded cells in columns F and H.
1) Fixed costs / Unit contribution margin
Enter the appropriate amount in the shaded cells in columns D, F, H, and J.
2) Convert after-tax profit to before-tax profit:
After-tax
profit / (1 – Tax rate)
X = number of units to sell to yield before-tax profit
Unit selling Unit variable
Price X – Cost X – Fixed Costs
3)
Revenue: Income:
Jan. – May $400 x350 $140,000 Revenue $954,000
June – Dec. $370 x2,200 814,000 Variable costs 455,000
Revenue: Income:
Jan. – May $400 x350 $140,000 Revenue $1,112,000
June – Dec. $360 x2,700 972,000 Variable costs 610,000
Revenue: Income:
Jan. – May $400 x350 $140,000 Revenue $900,000
June – Dec. $380 x2,000 760,000 Variable costs 470,000
SOLUTION
Alternative B
Alternative A
Alternative C
Break-even units =
Before-tax profit =
Before-tax profit =
Ex 16-22 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, I, and L.
Unit Unit
1) Product Price – Var. Cost = CM per unit x Units in Mix = Package CM
Regular 150.00$ – 100.00$ = 50.00$ x 5 = 250.00$
Break-even units Units in Mix x BE packages = Units
Regular 5 x 6,615 = 33,075
Deluxe 1 x 6,615 = 6,615
SOLUTION
Ex 16-22 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, I, and L.
Unit Unit
1) Product Price – Var. Cost = CM per unit x Units in Mix = Package CM
Regular 150.00$ – 100.00$ = 50.00$ x 5 = 250.00$
Deluxe 675.00$ – 405.00$ = 270.00$ x 1 = 270.00$
Total 520.00$
SOLUTION