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kellogg bars is forecasted to be a popular product and is positioned for success. It is estimated that the first year of sales (April 1, 2022 - April 1, 2023) will result in sales revenue of $169,990. The variable expense per unit will be $1.00. The price per unit is $3.68. The contribution margin is $2.68. The estimated sales volume in year one is projected to be 500,000 units. The estimation of fixed costs for year one is $3,000,000. The contribution margin method was used to calculate the predicted loss for year one, totaling $(320,000.00). See table 2 for the breakdown of year one of sales. It will not take long for Bubly Boost to break even and be a profitable offering for the company. Year 1 (April 1, 2022 - April 1, 2023) Sales (500,000 units) Less Variable Expenses Contribution Margin Less Fixed Expenses Net Operating Income Total $1,840,000.00 $500,000.00 $1,340,000.00 $3,000,000.00 $ (320,000.00) Per Unit $3.68 $1.00 $2.68 A) What is the break-even point? • Explain when you will break-even. • Include a break-even table/chart. Explain the break-even table/char ● kellogg bars is forecasted to be a popular product and is positioned for success. It is estimated that the first year of sales (April 1, 2022 - April 1, 2023) will result in sales revenue of $169,990. The variable expense per unit will be $1.00. The price per unit is $3.68. The contribution margin is $2.68. The estimated sales volume in year one is projected to be 500,000 units. The estimation of fixed costs for year one is $3,000,000. The contribution margin method was used to calculate the predicted loss for year one, totaling $(320,000.00). See table 2 for the breakdown of year one of sales. It will not take long for Bubly Boost to break even and be a profitable offering for the company. Year 1 (April 1, 2022 - April 1, 2023) Sales (500,000 units) Less Variable Expenses Contribution Margin Less Fixed Expenses Net Operating Income Total $1,840,000.00 $500,000.00 $1,340,000.00 $3,000,000.00 $ (320,000.00) Per Unit $3.68 $1.00 $2.68 A) What is the break-even point? • Explain when you will break-even. • Include a break-even table/chart. Explain the break-even table/char ●
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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