Stancil Drycleaners has determined the following about its costs: Total variable expenses are $38,000, total fixed expenses are $36,000, and the sales revenue needed to break even is $45,000. Use the contribution margin income statement and the shortcut contribution mar- gin approaches to determine Stancil Drycleaners’ current (1) sales revenue and (2) operating income. (Hint:First, find the contribution margin ratio; then, prepare the contribution margin income statement.)
Answer to relevant QuestionsUse the information from the Northern Cruiseline Data Set. If Northern Cruiseline has a target operating income of $60,000 per month, how many dinner cruise tickets must the company sell? Alexandre’s Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $620,000 and a contribution margin of 90% of revenues. Requirements 1. Compute Alexandre’s Steel Parts’ ...Jicky manufactures two styles of watches the Digital and the Classic. The following data pertain to the Digital: Jicky’s monthly fixed expenses total $210,000. When Digitals and Classics are sold in the mix of 6:4, ...The budgets of four companies yield the following information: Requirements 1. Fill in the blanks for each company. 2. Compute break-even, in sales dollars, for each company. Which company has the lowest break-even point in ...Use the information from the Northern Cruiseline Data Set. 1. Suppose Northern Cruiseline cuts its dinner cruise ticket price from $50 to $40 to increase the number of passengers. Compute the new break-even point in units ...
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