43 points Alternate Problem D Complete the requested information presented below in each independent situation. a. Determine the contribution margin per unit and the break-even point in units for Cowboys Company that has fixed costs of $63,000, variable cost of $24.50 per unit, and a selling price of $35.00 per unit. b. Wildcats Company has fixed costs of $56,000. In March, sales were $670,000, and variable costs were $536,000. Compute the contribution margin ratio and the break-even point in sales dollars. c. Hoosiers Company had sales in June of $84,000; variable costs of $46,200; and fixed costs of $50,400. At what level of sales, in dollars, would the company break even? d. What would the break-even point in sales dollars have been in (c) if variable costs had been 10% higher? e. What would the break-even point in sales dollars have been in (c) if fixed costs had been 10% higher? f. Which option would you suggest for Hoosiers - keep pricing the same, increase variable costs by 10%, or increase fixed costs by 10%? Why? Alternate Problem D a. Cowboys Company a. Determine the contribution margin per unit and the break-even point in sales units for Cowboys Company that has fixed costs of $63,000, variable cost of $24.50 per unit, and a selling price of $35.00 per unit. Step 1: To compute the BE in Units we first have to compute the Contribution Margin (CM) per Unit Contribution margin per unit- sales price / unit variable cost/ unit per unit Breakeven in Units units Fixed Costs CM per unit b. Wildcats Company b. Wildcats Company has fixed costs of $56,000. In March, sales were $670,000, and variable costs were $536,000. Compute the contribution margin ratio and the break-even point in sales dollars. Step 1: To compute the BE we first have to compute the Contribution Margin (CM) Contribution margin = sales price variable cost Step 2: To compute the BE in Sales Dollars we first have to compute the Contribution Margin (CM) Ratio CM ratio CM or (Sales - Variable Costs) Sales Breakeven in Sales Dol Fixed Costs CM ratio c. Hoosiers Company c. Hoosiers Company had sales in June of $84,000; variable costs of $46,200; and fixed costs of $50,400. At what level of sales, in dollars, would the company break even? Step 1: To compute the BE we first have to compute the Contribution Margin (CM) Contribution margin = sales price variable cost Step 2: To compute the BE in Sales Dollars we first have to compute the Contribution Margin (CM) Ratio CM ratio CM or (Sales - Variable Costs) Sales Breakeven in Sales Dol Fixed Costs CM ratio d. Hoosiers Company d. What would the break-even point in sales dollars have been for Hoosiers Company in (c) if variable costs had been 10% higher? Step 1: To compute the BE we first have to compute the Contribution Margin (CM) Contribution margin- sales price variable cost Step 2: To compute the BE in Sales Dollars we first have to compute the Contribution Margin (CM) Ratio CM ratio CM or (Sales - Variable Costs) Sales (Do Not Round) Breakeven in Sales Dol Fixed Costs CM ratio (Round to nearest cent-2 decimal places) e. Hoosiers Company e. What would the break-even point in sales dollars have been for Hoosier Company in (c) if fixed costs had been 10% higher? Step 1: To compute the BE we first have to compute the Contribution Margin (CM) Contribution margin = sales price variable cost e. Hoosiers Company e. What would the break-even point in sales dollars have been for Hoosier Company in (e) if fixed costs had been 10% higher? Step 1: To compute the BE we first have to compute the Contribution Margin (CM) Contribution margin- sales price variable cost Step 2: To compute the BE in Sales Dollars we first have to compute the Contribution Margin (CM) Ratio CM or (Sales - Variable Costs) Sales 0 CM ratio = 1 2 3 4 Breakeven in Sales Dol Fixed Costs CM ratio 7 8 9 f. Hoosiers Company f. Which option would you suggest for Hoosiers -keep pricing the same as in c), increase variable costs by 10% (as in d), or increase fixed costs by 10% (as in e)? Why? 0 3 4