Analyzing CVP relationshipsWhite Company sells flags with team logos. White has fixed costs of $639,600 per year plus variable costs of $4.20 per flag. Each flag sells for $12.00RequirementsUse the equation approach to compute the number of flags White must sell each year to break even.Use the contribution margin ratio approach to compute the dollar sales White needs to earn $32,500 in operating income for 2018 (Round the contribution margin to two decimal places.)Prepare White’s contribution margin income statement for the year ended December 31, 2018, for sales of 73,000 Flags (Round your final answers up to the next whole number)The company is considering an expansion that will increase fixed costs by 23% variable costs by $0.60 per flag Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning (Round your final answers up to the next whole number.)

Name: Analyzing CVP relationshipsWhite Company sells flags with team logos.
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Description: Analyzing CVP relationshipsWhite Company sells flags with team logos. White has fixed costs of $639,600 per year plus variable costs of $4.20 per flag. Each flag sells for $12.00RequirementsUse the equation approach to compute the number of flags Whi

Break-even point is the point wherein revenues equals expenses or contribution equals fixed costs.…

Answered: Analyzing CVP relationships White…

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

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Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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Analyzing CVP relationships

White Company sells flags with team logos. White has fixed costs of $639,600 per year plus variable costs of $4.20 per flag. Each flag sells for $12.00

Requirements

Use the equation approach to compute the number of flags White must sell each year to break even.
Use the contribution margin ratio approach to compute the dollar sales White needs to earn $32,500 in operating income for 2018 (Round the contribution margin to two decimal places.)
Prepare White’s contribution margin income statement for the year ended December 31, 2018, for sales of 73,000 Flags (Round your final answers up to the next whole number)
The company is considering an expansion that will increase fixed costs by 23% variable costs by $0.60 per flag Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning (Round your final answers up to the next whole number.)

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