PLEASE ANSWER ONLY QUESTIONSF AND G Question 1A company produces a single product called the Fidget. The following information relating to the nextyear has been provided:1,200,000840,000360,000SalesLess Variable expensesContribution marginLess Fixed expenses300,000Net operating income60,000The company plans to sell 15,000 next yearRequired:a.Calculate the contribution margin per unit and the contribution margin ratiob.Compute the breakeven point in units and dollar valueC.Compute the number of units to be sold in order to earn a profit of $36,000d.Calculate the sales value required to earn a profit of $36,000 if the tax rate is 25%Calculate the margin of safety ratioUsing an excel sheet, prepare the breakeven chart assuming that the company sellse.f.15,000 unitsg.State two (2) assumptions of CVP analysis

Break even analysis and cost volume profit (CVP) analysis are important analysis tools often used in…

Answered: PLEASE ANSWER ONLY QUESTIONS F AND G

Business

Finance

PLEASE ANSWER ONLY QUESTIONS F AND G

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 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...

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Question

PLEASE ANSWER ONLY QUESTIONS

F AND G

Question 1
A company produces a single product called the Fidget. The following information relating to the next
year has been provided:
1,200,000
840,000
360,000
Sales
Less Variable expenses
Contribution margin
Less Fixed expenses
300,000
Net operating income
60,000
The company plans to sell 15,000 next year
Required:
a.
Calculate the contribution margin per unit and the contribution margin ratio
b.
Compute the breakeven point in units and dollar value
C.
Compute the number of units to be sold in order to earn a profit of $36,000
d.
Calculate the sales value required to earn a profit of $36,000 if the tax rate is 25%
Calculate the margin of safety ratio
Using an excel sheet, prepare the breakeven chart assuming that the company sells
e.
f.
15,000 units
g.
State two (2) assumptions of CVP analysis

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