An asterisk (*) will appear to the right of an incorrect entry.
1.
Sales
Cost of goods sold:
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
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
3,000
6,000
9,000
12,000
15,000
5.
Problem 20(6)-6A
Name:
Section:
Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 20Y3
0%
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Instructions
$-
$0
$0
$1
$1
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000
Units
Cost-Volume-Profit Chart
Sales $
Costs $
Break-Even
Point
Operating Profit
Area
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
Operating income
Operating leverage
An asterisk (*) will appear to the right of an incorrect entry.
1.
Sales 3,500,000$
Factory overhead
Expenses:
Administrative expenses:
2.
Contribution margin ratio:
Sales 3,500,000$
3.
Break-even sales:
Fixed costs 525,000$
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 –$ 525,000$
3,000 480,000 885,000
6,000 960,000 1,245,000
9,000 1,440,000 1,605,000
12,000 1,920,000 1,965,000
Name:
Section:
Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 20Y3
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)-6A
Solution
ON
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$5,000,000
Units
Cost-Volume-Profit Chart
Sales $
Costs $
Operating Loss
Area
Operating Profit
5.
Margin of safety:
6.
Operating leverage: