Question: are these correct? 1 (14 pts) Based upon the figures below and the financial forecast for the years 20X3 - 20X7, compute 1a through 1d
are these correct? 1 (14 pts) Based upon the figures below and the financial forecast for the years 20X3 - 20X7, compute 1a through 1d below, placing your final results in the yellow highlighted area. GIVEN: 20X3 20X4 20X5 20X6 20X7 Quantity of windows sold (Q) 4,000 5,000 6,000 7,000 8,000 Selling price per window (P) $1,000 $1,000 $1,000 $1,000 $1,000 Variable Costs per window (VC) $500 $600 $583 $571 $625 Total Fixed Costs (FC) $500,000 $500,000 $500,000 $500,000 $500,000 Total Variable Costs (TVC) $2,000,000 $3,000,000 $3,500,000 $4,000,000 $5,000,000 SOLVE FOR: 20X3 20X4 20X5 20X6 20X7 a Contribution Margin Ratio 3 pts 0.500 0.400 0.417 0.429 0.375 b Breakeven in sales dollars 3 pts $1,000,000 $1,250,000 $1,200,000 $1,166,667 $1,333,333 c DOL 4 pts 2.122 1.560 1.542 1.531 1.305 d DFL 4 pts 1.080 1.049 1.032 1.021 1.013
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
