FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The budgets of four companies yield the following information:
|(Click the icon to view the budget information for the four companies.)
Read the requirements.
Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus sign or parenthes
Sunny
Rainy
Cloudy
Windy
Net Sales Revenue
$ 1,485,000
288,000
Variable Costs
128,000
144,000
119,250
Fixed Costs
162,000
260,000
Operating Income (Loss)
231,600
$
63,900
Units Sold
180,000
8,000
Contribution Margin per Unit
3.30
72.00
15.00
Contribution Margin Ratio
60 %
%
40 %
Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?
Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. (Complete all input
to $11. Abbreviation used: CM = contribution margin.)
Required sales in dollars
%3D
Sunny
%
Rainy
%
Cloudy
Windy
%
Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?
has the lowest breakeven point, primarily due to
%24
+ +
+
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Transcribed Image Text:The budgets of four companies yield the following information: |(Click the icon to view the budget information for the four companies.) Read the requirements. Requirement 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent. Use a minus sign or parenthes Sunny Rainy Cloudy Windy Net Sales Revenue $ 1,485,000 288,000 Variable Costs 128,000 144,000 119,250 Fixed Costs 162,000 260,000 Operating Income (Loss) 231,600 $ 63,900 Units Sold 180,000 8,000 Contribution Margin per Unit 3.30 72.00 15.00 Contribution Margin Ratio 60 % % 40 % Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. (Complete all input to $11. Abbreviation used: CM = contribution margin.) Required sales in dollars %3D Sunny % Rainy % Cloudy Windy % Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? has the lowest breakeven point, primarily due to %24 + + +
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