Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Related questions
Question
What will be Abado’s breakeven point in sales dollars ?
Transcribed Image Text:On this educational webpage, we present the Contribution Income Statement for Abadoofiles, illustrating financial data for Math Testing, Reading Testing, and the Total Company. The statement is organized into three main sections: Total, Per Unit, and Company-Wide summaries for both subjects.
### Abadoofiles Contribution Income Statement
#### Math Testing
1. **Sales**
- Total: $1,200,000
- Per Unit: $20
2. **Variable Expenses**
- Total: $840,000
- Per Unit: $14
3. **Contribution Margin**
- Total: $360,000
- Per Unit: $6
4. **Fixed Expenses**
- Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two)
5. **Operating Income / (Loss)**
- Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $360,000 - $240,000 = $120,000)
#### Reading Testing
1. **Sales**
- Total: $1,200,000
- Per Unit: $20
2. **Variable Expenses**
- Total: $1,080,000
- Per Unit: $18
3. **Contribution Margin**
- Total: $120,000
- Per Unit: $2
4. **Fixed Expenses**
- Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two)
5. **Operating Income / (Loss)**
- Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $120,000 - $240,000 = -$120,000)
#### Total Company
1. **Sales**
- Total: $2,400,000
2. **Variable Expenses**
- Total: $1,920,000
3. **Contribution Margin**
- Total: $480,000
4. **Fixed Expenses**
- Total: $360,000
5. **Operating Income / (Loss)**
- Total: $120,000
### Graph/Diagram Explanation
The table displayed serves as a financial overview, detailing the incomes and expenses per unit and in total for Math Testing, Reading Testing, and for the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- using the price p=20 - .05x, use the Revenue function to find the marginal Revenue function R'(x), Find a. R'(100)= b. R'(175)= c. R'(250)= The marginal Revenue R'(x) approximates how the revenue will change on the sale of the next item. a. Given R(100) = 642 and R'(100)= 18 then R(101) ≈ b. Given R(400) = 16,250 and R'(400)= -10 then R(401) ≈ c. Given R(1000) = 3500 and R'(1000) = 3 then R(1001) ≈arrow_forwardWhich of the following is not another way of describing the marginal propensity to consume? a. autonomous consumption spending b. the slope of the consumption function c. the amount by which real consumption spending rises when real disposable income increases by one dollar d. MPC e. the change in real consumption spending divided by the change in real disposable incomearrow_forwardChange in operating income = change in sales dollars x contribution margin What is the equation for the "change in sales dollars"?arrow_forward
- If sales volume increases and all other factors remain constant, then the: O contribution margin ratio will increase. O margin of safety will increase. break-even point will decrease. O net operating income will decrease.arrow_forwardWhat effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?arrow_forwardThe spread is a function of a variety of factors. You can think of the spread as a function of these factors. For example: Spread = f(Order Costs, Inventory Costs, Competition, Volume, Currency Risk) All else equal, if the volume increases then the spread will most likely increasearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education