Parker, Incorporated produces one model of mountain bike. Partial information for the company follows: Complete the template worksheet filling in all of the following: 1. Total variable costs for each sales level 2. Total fixed costs for each sales level 3. Total costs for each sales level 4. Variable cost per unit for each sales level 5. Fixed cost per unit for each sales level 6. Total cost per unit for each sales level 7. Contribution margin ratio for each sales level, using a sales price of 710 per unit. 8. Total contribution margin for each sales level 9. Breakeven units 10. Breakeven sales revenue 11. Prepare the GAAP (absorption costing) income statement if selling, general, and administrative costs are $30,000. Recall that you have already solved for total costs, previously. 12. How many units should Parker, Inc sell AND what should the sales revenue be in order to earn a profit of $220,000? Sales Price ? Number of bikes produced and sold 500 750 960 Total costs Variable costs 116,000.00 ? ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? 519.75 ? Contribution Margins 500 750 960 Contribution Margin Ratio ? ? ? Total Contribution Margin ? ? ? Break-even Analysis Units ? Sales revenue ? Income Statement Units 500 750 960 Sales revenue ? ? ? Cost of goods sold ? ? ? Gross profit ? ? ? Selling, general, & administrative expenses ? ? ? Net operating income (loss) ? ? ? Target Profit of 220,000.00 Units ? Sales revenue ?
Parker, Incorporated produces one model of mountain bike. Partial information for the company follows: Complete the template worksheet filling in all of the following: 1. Total variable costs for each sales level 2. Total fixed costs for each sales level 3. Total costs for each sales level 4. Variable cost per unit for each sales level 5. Fixed cost per unit for each sales level 6. Total cost per unit for each sales level 7. Contribution margin ratio for each sales level, using a sales price of 710 per unit. 8. Total contribution margin for each sales level 9. Breakeven units 10. Breakeven sales revenue 11. Prepare the GAAP (absorption costing) income statement if selling, general, and administrative costs are $30,000. Recall that you have already solved for total costs, previously. 12. How many units should Parker, Inc sell AND what should the sales revenue be in order to earn a profit of $220,000? Sales Price ? Number of bikes produced and sold 500 750 960 Total costs Variable costs 116,000.00 ? ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? 519.75 ? Contribution Margins 500 750 960 Contribution Margin Ratio ? ? ? Total Contribution Margin ? ? ? Break-even Analysis Units ? Sales revenue ? Income Statement Units 500 750 960 Sales revenue ? ? ? Cost of goods sold ? ? ? Gross profit ? ? ? Selling, general, & administrative expenses ? ? ? Net operating income (loss) ? ? ? Target Profit of 220,000.00 Units ? Sales revenue ?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 6PA: Carolina Yachts builds custom yachts in its production factory in South Carolina. Once complete,...
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Parker, Incorporated produces one model of mountain bike. Partial information for the company follows: |
Complete the template worksheet filling in all of the following: | |||
1. Total variable costs for each sales level | |||
2. Total fixed costs for each sales level | |||
3. Total costs for each sales level | |||
4. Variable cost per unit for each sales level | |||
5. Fixed cost per unit for each sales level | |||
6. Total cost per unit for each sales level | |||
7. Contribution margin ratio for each sales level, using a sales price of 710 per unit. | |||
8. Total contribution margin for each sales level | |||
9. Breakeven units | |||
10. Breakeven sales revenue | |||
11. Prepare the GAAP (absorption costing) income statement if selling, general, and administrative costs are $30,000. Recall that you have already solved for total costs, previously. | |||
12. How many units should Parker, Inc sell AND what should the sales revenue be in order to earn a profit of $220,000? |
Sales Price | ? | ||
Number of bikes produced and sold | 500 | 750 | 960 |
Total costs | |||
Variable costs | 116,000.00 | ? | ? |
Fixed costs per year | ? | ? | ? |
Total costs | ? | ? | ? |
Cost per unit | |||
Variable cost per unit | ? | ? | ? |
Fixed cost per unit | ? | ? | ? |
Total cost per unit | ? | 519.75 | ? |
Contribution Margins | 500 | 750 | 960 |
Contribution Margin Ratio | ? | ? | ? |
Total Contribution Margin | ? | ? | ? |
Break-even Analysis | |||
Units | ? | ||
Sales revenue | ? | ||
Income Statement | |||
Units | 500 | 750 | 960 |
Sales revenue | ? | ? | ? |
Cost of goods sold | ? | ? | ? |
Gross profit | ? | ? | ? |
Selling, general, & administrative expenses | ? | ? | ? |
Net operating income (loss) | ? | ? | ? |
Target Profit of | 220,000.00 | ||
Units | ? | ||
Sales revenue | ? |
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