Cleary Company manufactures and sells a single product. The​ company's sales and expenses for last year​ follow:   Total Per Unit % Sales. . . . . . . . . . . . . . . . . . . $100,000 $20 ? Variable expenses. . . . . . . ? ? ? Contribution margin. . . . . . ? ? ? Fixed expenses. . . . . . . . . . 12,000     Operating income. . . . . . . . $28,000         1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:   a. What is the total contribution​ margin? b. What is the total variable​ expense? c. How many units were​ sold? d. What is the​ per-unit variable​ expense? e. What is the​ per-unit contribution​ margin? 2. Answer the following questions about breakeven​ analysis:   a. What is the breakeven point in​ units? b. What is the breakeven point in sales​ dollars? 3. Answer the following questions about target profit analysis and safety​ margin:   a. How many units must the company sell in order to earn a profit of $50,000​? b. What is the current margin of safety in​ units? c. What is the margin of safety in sales​ dollars? d. What is the margin of safety in​ percentage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Cleary Company manufactures and sells a single product. The​ company's sales and expenses for last year​ follow:
 
Total
Per Unit
%
Sales. . . . . . . . . . . . . . . . . . .
$100,000
$20
?
Variable expenses. . . . . . .
?
?
?
Contribution margin. . . . . .
?
?
?
Fixed expenses. . . . . . . . . .
12,000
   
Operating income. . . . . . . .
$28,000
 
 

 

 

1.
Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:
 
a. What is the total contribution​ margin?
b. What is the total variable​ expense?
c. How many units were​ sold?
d. What is the​ per-unit variable​ expense?
e. What is the​ per-unit contribution​ margin?
2.
Answer the following questions about breakeven​ analysis:
 
a. What is the breakeven point in​ units?
b. What is the breakeven point in sales​ dollars?
3.
Answer the following questions about target profit analysis and safety​ margin:
 
a. How many units must the company sell in order to earn a profit of
$50,000​?
b. What is the current margin of safety in​ units?
c. What is the margin of safety in sales​ dollars?
d. What is the margin of safety in​ percentage?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education