An asterisk (*) will appear to the right of an incorrect entry.
1.
Sales
Cost of goods sold:
Direct materials
Direct labor
Factory overhead
Cost of goods sold
Gross profit
Expenses:
Selling expenses
Sales salaries and commissions
Advertising
Travel
Miscellaneous selling expense
Total selling expenses
Administrative expenses:
Office and officers’ salaries
Supplies
Miscellaneous administrative expense
Total administrative expenses
Total expenses
Income from operations
2.
Contribution margin ratio:
Sales
Variable costs
Contribution margin
Sales
Contribution margin ratio
3.
Break-even sales:
Fixed costs
Unit contribution margin
Break-even sales (units)
Sale price
Break-even sales (dollars)
4.
For each unit level of sales, enter the total sales dollars and total costs. The chart at right will be plotted as you enter the amounts.
After all points are plotted, grab and move the labels provided at the left to identify each area.
Units Sales $ Costs $
0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
27,000
0%
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[Key code here]
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Score:
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Instructions
Units Unit Variable Cost
Sale Price – Unit Variable Cost
WOLSEY INDUSTRIES INC.
Estimated Income Statement
For the Year Ended December 31, 2014
Problem 19(4)-6A
Name:
Section:
$-
$0
$0
$1
$1
$1
$1
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000
Sales and Costs
Units
Cost-Volume-Profit Chart
Sales $
Costs $
Break-Even
Point
Operating Profit
Area
5.
Margin of safety:
Sale Price Units
Expected sales
Break-even point
Margin of safety (in dollars)
Expected sales
Margin of safety (as a percentage of sales)
6.
Operating leverage:
Unit CM $ Units
Contribution margin
Income from operations
Operating leverage
Units
An asterisk (*) will appear to the right of an incorrect entry.
1.
Sales 3,500,000$
2.
Contribution margin ratio:
3.
ON
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Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Problem 19(4)-6A
Name:
Solution
Section:
WOLSEY INDUSTRIES INC.
Estimated Income Statement
For the Year Ended December 31, 2014
5.
Margin of safety:
Sale Price Units