1, Why are breakeven sales dollars different when considering the weighted average contribution margin for the sales...
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Question:
1, Why are breakeven sales dollars different when considering the weighted average contribution margin for the sales mix than when the average contribution margin (without considering the sales mix) is used?
2. What costs are not captured in the calculation? Hint: see Table I and Operations and Internal Controls above.
Table IV: Cost of goods sold and gross profit analysis by semester | |||||||
Fall 2009 | Spring 2010 | Fall 2010 | Spring 2011 | Fall 2011 | Spring 2012 | Fall 2012 | |
Net Sales | $3,136.48 | $3,250.97 | $3,292.65 | $2,122.63 | $2,582.67 | $2,094.95 | $2,099.73 |
Cost of sales | |||||||
Beg. inventory | 106.09 | 423.07 | 142.36 | 85.80 | 425.68 | 579.64 | 398.77 |
Add: purchases | 2,191.27 | 1,479.72 | 1,648.76 | 2,136.31 | 1,524.15 | 1,104.73 | 1,264.48 |
Available for sale | 2,297.36 | 1,902.79 | 1,791.12 | 2,222.11 | 1,949.83 | 1,684.37 | 1,663.25 |
Less: ending inventory | 423.07 | 142.36 | 85.80 | 425.68 | 579.64 | 398.77 | 387.85 |
Cost of goods sold | $1,874.29 | $1,760.43 | $1,705.32 | $1,796.43 | $1,370.19 | $1,285.60 | $1,275.40 |
Gross profit | $1,262.19 | $1,490.54 | $1587.33 | $326.20 | $1212.48 | $809.35 | $824.33 |
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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