Picnic Time produces a picnic basket that is sold for $ 1 1 6 per unit. Assume
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Question:
Picnic Time produces a picnic basket that is sold for $ per unit. Assume the company produced and sold baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow.
Variable Cost per Unit
Manufacturing:
Direct materials. $
Direct labor.
Manufacturing overhead.
Total
Selling and administrative.
Total $
Fixed Costs per Month
Manufacturing overhead $
Selling and administrative
Total
a Prepare a contribution income statement for July.
b Determine the breakeven point in sales dollars.
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $ for $
c Suppose the cost of labor is expected to increase next year. How will this affect thebreakeven point?
Breakeven point will dDetermine July's margin of safety in sales dollars. e What dollar sales volume is currently required to obtain a beforetax profit of $
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $ for $
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
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