12.4 analysis CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000. Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.Required:Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
12.4 analysis CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000. Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.Required:Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 16BEA
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12.4 analysis
CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.
Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.
Required:
Calculate Bay Area Cycle’s break-even point in units and total sales dollars. Calculate Bay Area Cycle’s margin of safety and margin of safety ratio.
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