Question: ACCT 2060- Chapter 5 In Class BP . At annual sales of S900,000, the Ebo product has the following unit sales price and costs: Sales
ACCT 2060- Chapter 5 In Class BP . At annual sales of S900,000, the Ebo product has the following unit sales price and costs: Sales price om10L Prime cost Manufacturing overhead:Soles sPuxUts u SRu- $1 Variable Fixed qtok2on unit sales nit Sates- 900k o-IIb) Selling & admin. costs Variable Total costs Profit What is Ebo's breakeven point in units? Cmiono (cn 2. The following information pertains to Syl Co.: Soies Saies Revenues $800,000 $160,000 Variable costs Fixed costs What is Syl's breakeven point in revenues? 90o,000- 100,000 00,000 GE in $:50000 3. Comprehensive Problem Iron Decor manufactures decorative iron railings. In preparing for n management has developed the following estimates: Total Per Unit S1000,000 s50.00 $200,000 $10.00 s50,000 $2.50 Sales (20,000 units). Direct materials -Direct labor (variable) Manufacturing overhead: Variable.$70,000 $3.50 $80,000 $4.00 Selling&administrative: Variable ble $100,000 5.00 $30,000 $1.50 Fixed Required: Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. If the sales volume increases by 20 change in net operating income? d. Break-even in units e. Break-even in dollar sales. t. What would be the sales in units that will assure the company to gain its $325,000 profit? g. What would be the sales in dollars that will assure the company to gain its S165,500 pro h. Margin of safety i. What company? % with no change in total fixed expenses, what will be the fit? is the degree of operating leverage if the company? What is this number mean to the
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
