Harper Company produced and sold 75,000 bags during the year 2021 at $50 per unit. Total...
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Harper Company produced and sold 75,000 bags during the year 2021 at $50 per unit. Total fixed cost was $2,100,000 while variable cost was $20 per unit. (a) Prepare a contribution margin income statement for the Year 2021. (b) Determine the breakeven point in units and in dollars. (c) Determine the breakpoint point in units and in dollars if variable cost increased by 25%. (d) Ignoring part (c), the sales manager proposes to spend $120,000 on advertisement. According to him, this will result in an increase of sales of 3,500 units. Should the proposal be accepted? Harper Company produced and sold 75,000 bags during the year 2021 at $50 per unit. Total fixed cost was $2,100,000 while variable cost was $20 per unit. (a) Prepare a contribution margin income statement for the Year 2021. (b) Determine the breakeven point in units and in dollars. (c) Determine the breakpoint point in units and in dollars if variable cost increased by 25%. (d) Ignoring part (c), the sales manager proposes to spend $120,000 on advertisement. According to him, this will result in an increase of sales of 3,500 units. Should the proposal be accepted?
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a Contribution Margin Income Statement for Year 2022 bash Sales 75000 bags at 50 per unit 3750000 Variable Costs Variable Cost of Goods Sold 75000 bag... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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