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
Office and officers’ salaries
Supplies
Miscellaneous administrative expense
Total administrative expenses
Total expenses
Operating income
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
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Problem 20(6)-6B
Name:
Section:
Units Unit Variable Cost
Sale Price – Unit Variable Cost
Belmain Co.
Estimated Income Statement
For the Year Ended December 31, 20Y7
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[Key code here]
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Score:
Key Code:
Instructions
$-
$0
$0
$1
$1
$1
$1
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
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:
An asterisk (*) will appear to the right of an incorrect entry.
1.
Expenses:
Total selling expenses 522,300$
Administrative expenses:
2.
Contribution margin ratio:
Sales 2,880,000$
3.
Break-even sales:
Fixed costs 1,152,000$
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 –$ 1,152,000$
2,000 480,000 1,344,000
4,000 960,000 1,536,000
6,000 1,440,000 1,728,000
8,000 1,920,000 1,920,000
10,000 2,400,000 2,112,000
Name:
Section:
Belmain Co.
Estimated Income Statement
For the Year Ended December 31, 20Y7
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Problem 20(6)-6B
Solution
ON
Key Code:
$5,000,000
Cost-Volume-Profit Chart
5.
Margin of safety:
Sale Price Units
6.
Operating leverage: