module 6 hw
.docx
keyboard_arrow_up
School
Baker College *
*We aren’t endorsed by this school
Course
3110
Subject
Accounting
Date
Feb 20, 2024
Type
docx
Pages
2
Uploaded by ColonelInternetStarling35
Brian Nieves
Baker College
BUS3110-C1
Module 6: Homework
Problem 11-28 pg. 435
Determine the break-even point in units and dollars using each of the following approaches:
Check figure a. 10,000 units
a. Use the equation method.
N = # of units
Profit = $0
Break-even in units:
Sales – Var. Cost – Fixed Cost = Profit (net income)
($150 * N)- (($60 + $18) * N) – ($480,000 + $240,000) = 0
$72N - $720,000 = 0 $72N = $720,000
N = 10,000
Break-even in $:
¿
costs
(
sales
−
var .costs
)
÷sales
$
720,000
(
$
150
−
$
78
)
÷ $
150
B/E $= $1,500,000
b. Use the contribution margin per unit approach. Break-even in units:
¿
costs
contributionmargin perunit
(
sales
−
var .costs
)
$
720,000
$
150
−(
$
60
+
$
18
)
$
720,000
$
72
B/E = 10,000
Break-even in $:
¿
costs
var .costs
/
sales
$
720,000
(
$
72
$
150
)
B/E= $1,500,000
c
. Confirm your results by preparing a contribution margin income sheet for break-even sales volume. See attached excel worksheet. Problem 11-29 pg. 436
For a, b, and c see attached excel worksheet. d. Assuming management is pessimistic and risk adverse, the product with the lowest operating leverage should be added to the cosmetics line. The Color gel line has the lowest percentage change in net income. This product line has the least decrease in net income for any given decease in sales making it the least risky option. e. Assuming management is optimistic and aggressive, the product with the highest operating leverage should be chosen. The Bath Oil line has the highest percentage change in net income for
the given increase in sales.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Activity 2: Complete me! Directions: Fill in the needed data to complete the
table below.
Unit
B.E.P in
B.E.P in
Selling
Price per
Unit
Variable
Cost per
Unit
Total Fixed
Cost
Contributio
Units
Pesos
n Margin
P19,500.00
P15.00
P13.00
P960.00
P18.00
P15.00
P24.00
P3.00
69
P34.00
P3.00
150
P27.00
P5.00
100
2.
3.
4.
arrow_forward
1. prepare an estimated income statement for 20Y7.
arrow_forward
ACCOUNT
arrow_forward
Put answers in a file word
arrow_forward
Please show work Quickly question 7 and 8 I humble request sir please without plagiarism please
arrow_forward
G http
Chapter Review
My...
Sales price
Contribution margin ratio
Fixed costs
Tra..
Vernon Company reported the following data regarding the product it sells:
a. Break-even point in dollars
a. Break-even point in units
b. Sales in dollars
b. Sales in units
c. Break-even point in dollars
c. Break-even point in units
$60
Man...
$
10%
$216,000
M Questio...
Required
Use the contribution margin ratio approach and consider each requirement separately.
b Ans...
2,160,000
36,000
Bes...
Saved
a. What is the break-even point in dollars? In units?
b. To obtain a profit of $54,000, what must the sales be in dollars? In units?
c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units?
US
fron.
arrow_forward
don't give answer in image format
arrow_forward
A1
fx
Chapter 5: Applying Excel
A
В
1 Chapter 5: Applying Excel
2
3 Data
20,000 units
$60 per unit
$45 per unit
$270,000
4 Unit sales
5 Selling price per unit
6 Variable expenses per unit
7 Fixed expenses
8
9 Enter a formula into each of the cells marked with a ? below
10 Review Problem: CVP Relationships
11
12 Compute the CM ratio and variable expense ratio
13 Selling price per unit
14 Variable expenses per unit
15 Contribution margin per unit
$60 per unit
45 per unit
$15 per unit
16
17 CM ratio
25%
18 Variable expense ratio
75%
19
20 Compute the break-even
18,000 units
$1,080,000
21 Break-even in unit sales
22 Break-even in dollar sales
23
24 Compute the margin of safety
25 Margin of safety in dollars
26 Margin of safety percentage
120,000
10%
27
28 Compute the degree of operating leverage
$ 1,200,000
900,000
300,000
$270,000
$
29 Sales
30 Variable expenses
31 Contribution margin
32 Fixed expenses
33 Net operating income
30,000
34
35 Degree of operating leverage
10.00
36
%24
arrow_forward
Assume the following:
1. selling price per unit = $25
2. variable expense per unit = $13
3. the total fixed expenses = $20,000
4. net operating income = $14,200
Given these four assumptions, unit sales must be:
Multiple Choice
3,420 units.
1,200 units.
2,342 units.
2,850 units.
arrow_forward
History
Bookmarks
Profiles
Tab
Window
Help
com/courses/423/quizzes/21056/take
Maps
• The level of sales where total sales is equal to the total costs incurred, thereby results to no
income nor loss.
1. Actual sales
2. Budgeted sales
3. Break-even sales
4. Marginal sales
O 1
O 2
O 3
O4
Question 18
1 pts
• At the break-even point, the total contribution margin equals the
1. Fixed costs
2. Net income before tax
3. Net income after tax
4. Variable costs
O 1
O 2
O 3
MacBook Pro
G Search or type URL
arrow_forward
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume
arrow_forward
A7 please help.......
arrow_forward
Please help solve,
arrow_forward
Assume in each case that the selling expenses are $9 per unit and that the normal profit is $6 per unit. Calculate the limits for each case. Then enter the amount that should be used for lower of cost or market.
Selling Price
Upper Limit
Replacement Cost
Lower Limit
Cost
LCM
(a)
$63
$
$44
$
$53
$
(b)
52
35
39
(c)
59
44
45
(d)
54
38
36
arrow_forward
Question 4
arrow_forward
...
Question 4 QUIZ - CH 05 Exe
ezto.mheducation.com
Your Texas Benefits... G
Google
Sy simplify 28(x)=8700...
myLoneStar Login
CH 05 Exercises & Problems (Algo) i
PƏAES
Exercise 5-8 (Algo) Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-
Average Method [LO5-2, LO5-3, LO5-4]
Hellx Corporation uses the welghted-average method In Its process costing system. It produces prefabrlcated flooring In a serles of
steps carrled out in production departments. All of the materlal that Is used In the first production department Is added at the
beginning of processing In that department. Data for May for the first production department follow:
Percent Complete
Units
Materials
Conversion
Work in process inventory, May 1
Work in process inventory, May 31
Materials cost in work in process inventory, May 1
Conversion cost in work in process inventory, May 1
Units started into production
Units transferred to the next prdduction department
Materials cost added during May…
arrow_forward
EXERCISE l: BREAK EVEN POINT IN UNITS AND IN REVENUE
Unit selling price
248.00
Unit variable costs
(6.00) ($300,000-50,000)
$2.00
Unit contribution margin
Fixed Costs: $100,000
Calculate the following:
1. Break-even point in units
2. Break-even point in revenue
EXERCISE 2: BREAK-EVEN POINT IN UNITS AND IN REVENUE
Using the information in Exercise 1, if rent were iıncreased by S25,000 and variable costs
and unit selling price remained unchanged, what would be the new PV ratio and break-
even point in units and in revenue?
arrow_forward
Solve this problem
arrow_forward
A7
arrow_forward
Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has been experiencing financial
difficulty for some time. The company's contribution format income statement for the most recent month is given below:
Sales (13,200 units × $20 per unit)
Variable expenses
Contribution margin
Fixed expenses
Net operating loss
$ 264,000
132,000
132,000
147,000
$ (15,000)
Required:
1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales.
2. The president believes that a $6,700 increase in the monthly advertising budget, combined with an intensified effort by the sales
staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's
monthly net operating income?
3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of
$31,000 in the monthly advertising budget, will double unit…
arrow_forward
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in
requirement 3? (Do not round intermediate calculations.)
Break-even point in units
Break-even point in dollar sales
arrow_forward
In the cost-volume- profit graph (above), what is represented by the point marked "A"?
Question 1 options:
Breakeven point
Fixed expenses
Operating income area
Operating loss area
arrow_forward
vnt.6
arrow_forward
Give correct answer the general accounting question
arrow_forward
Marked out of
O b. $1.66
1.00
O c. $3.33
P Flag
O d. $2.66
question
O e. $4.16
Question
20
If sales are $24,000, variable costs are $8,000, and fixed costs are $3,000, the contribution margin ratio is: (rounded
to the nearest number)
Not yet
O a.
67%
answered
O b. 13%
Marked out of
1.00
O c.
33%
P Flag
O d. 54%
question
O e. None of the given answers
0 al -
eT:4
TOSHIBA
arrow_forward
calculate contribution margin ratio, breakeven point in amount and breakeven point in units
arrow_forward
Find the break even point accounting questions
arrow_forward
In the cost-volume- profit graph (above), what is represented by the point marked "B"?
Question 2 options:
Breakeven point
Fixed expenses
Operating income area
Operating loss area
arrow_forward
s
arrow_forward
don't give answer in image format
arrow_forward
Draw V Type here to search Read aloud 7-2B-CVP Analysis, "What if?" Analysis Kevin Co.'s projected contribution-format income statement for the upcoming month is shown below: Sales (500 units) Variable expenses Contribution margin local or shared file Fixed expenses Net operating income $10,000 4,000 6,000 1,000 $5,000 Required: a.) Compute the breakeven point in units. b.) Compute the breakeven point in dollars. c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month? d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms. e.) The company's manager thinks that adding a salaried sales staff member at a cost of $2,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change? f.) Refer to the original data, the company's manager believes that a new production process will improve profitability He plans to…
arrow_forward
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all
production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various
department heads were asked to submit estimates of the costs for their departments during the year. A summary report
of these estimates is as follows:
Estimated
Estimated Variable Cost
Fixed Cost
(per unit sold)
Production costs:
Direct materials
$50.00
Direct labor
30.00
Factory overhead
$350,000
6.00
Selling expenses:
Sales salaries and commissions
340,000
4.00
Advertising
116,000
Travel
4,000
Miscellaneous selling expense
2,300
1.00
Administrative expenses:
Office and officers' salaries
325,000
Supplies
6,000
4.00
Miscellaneous administrative expense
8,700
1.00
Total
$1,152,000
$96.00
It is expected that 12,000 units will be sold at a price…
arrow_forward
Download and fill out the Section 5 Comprehensive Problem Template attached below to complete the problems (ignore question 5-2 as this applies to the "combined accounting and finance" course).
Problem 5-1
Redlands Inc. sells one product for $5. The variable cost per item is $3, and the fixed costs for the firm are $40.
Required:
a. Compute the breakeven point in units.
b. Compute the number of units and sales revenue needed to achieve a $20 profit. (Ignore income taxes.)
c. Assume that the income tax rate for Redlands is 40%. Compute the number of units and sales revenue needed to achieve an $18 net profit.
d. Compute the number of units and sales revenue needed to achieve an 8% profit margin. (Ignore income taxes.)
e. Compute the number of units and sales revenue needed to achieve a 12% net profit margin. (Assume a 40% income tax rate.)
f. Assume that Redlands currently sells 40 units. Redlands estimates that if it increased sales price to $6 per unit demand would decrease by…
arrow_forward
Answer c and d alone
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Related Questions
- Activity 2: Complete me! Directions: Fill in the needed data to complete the table below. Unit B.E.P in B.E.P in Selling Price per Unit Variable Cost per Unit Total Fixed Cost Contributio Units Pesos n Margin P19,500.00 P15.00 P13.00 P960.00 P18.00 P15.00 P24.00 P3.00 69 P34.00 P3.00 150 P27.00 P5.00 100 2. 3. 4.arrow_forward1. prepare an estimated income statement for 20Y7.arrow_forwardACCOUNTarrow_forward
- Put answers in a file wordarrow_forwardPlease show work Quickly question 7 and 8 I humble request sir please without plagiarism pleasearrow_forwardG http Chapter Review My... Sales price Contribution margin ratio Fixed costs Tra.. Vernon Company reported the following data regarding the product it sells: a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $60 Man... $ 10% $216,000 M Questio... Required Use the contribution margin ratio approach and consider each requirement separately. b Ans... 2,160,000 36,000 Bes... Saved a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units? US fron.arrow_forward
- don't give answer in image formatarrow_forwardA1 fx Chapter 5: Applying Excel A В 1 Chapter 5: Applying Excel 2 3 Data 20,000 units $60 per unit $45 per unit $270,000 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: CVP Relationships 11 12 Compute the CM ratio and variable expense ratio 13 Selling price per unit 14 Variable expenses per unit 15 Contribution margin per unit $60 per unit 45 per unit $15 per unit 16 17 CM ratio 25% 18 Variable expense ratio 75% 19 20 Compute the break-even 18,000 units $1,080,000 21 Break-even in unit sales 22 Break-even in dollar sales 23 24 Compute the margin of safety 25 Margin of safety in dollars 26 Margin of safety percentage 120,000 10% 27 28 Compute the degree of operating leverage $ 1,200,000 900,000 300,000 $270,000 $ 29 Sales 30 Variable expenses 31 Contribution margin 32 Fixed expenses 33 Net operating income 30,000 34 35 Degree of operating leverage 10.00 36 %24arrow_forwardAssume the following: 1. selling price per unit = $25 2. variable expense per unit = $13 3. the total fixed expenses = $20,000 4. net operating income = $14,200 Given these four assumptions, unit sales must be: Multiple Choice 3,420 units. 1,200 units. 2,342 units. 2,850 units.arrow_forward
- History Bookmarks Profiles Tab Window Help com/courses/423/quizzes/21056/take Maps • The level of sales where total sales is equal to the total costs incurred, thereby results to no income nor loss. 1. Actual sales 2. Budgeted sales 3. Break-even sales 4. Marginal sales O 1 O 2 O 3 O4 Question 18 1 pts • At the break-even point, the total contribution margin equals the 1. Fixed costs 2. Net income before tax 3. Net income after tax 4. Variable costs O 1 O 2 O 3 MacBook Pro G Search or type URLarrow_forwardCompute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volumearrow_forwardA7 please help.......arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education