Part 1: Calculating Contribution Margin and Breakeven Point 1. Calculate the contribution margin rate, the sales...
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Part 1: Calculating Contribution Margin and Breakeven Point 1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: I b. Sales Dollar Breakeven Point: c. Unit Sales Breakeven Point: 1. Utilize the comparative income statement for the amounts needed. Al-Can Products, Inc. Comparative Income Statement For Years Ended December 31, 20xx and 20xx CURRENT YEAR Net Sales Cost of Merchandise Sold Gross Profit on Operations Total Operating Expenses Net Income Before Federal Income Tax Federal Income Tax Expense Net Income After Federal Income Tax Total Stockholders' Equity Net Sales Net Income After Tax I Stockholders' Equity $426,500.00 $268,700.00 $157,800.00 $110,800.00 $47,000.00 $7,100.00 $39,900.00 $195,000.00 Amount 2. Calculate the amount and percent of increase or decrease from the prior year to the current in the table below. State whether the trend is favorable or unfavorable. Increase (Decrease) PRIOR YEAR Percent $346,800.00 $245,200.00 $101,600.00 $85,200.00 $16,400.00 $2,500.00 $13,900.00 $186,000.00 Trend 11 Part 1: Calculating Contribution Margin and Breakeven Point 1. Calculate the contribution margin rate, the sales dollar breakeven point, and the unit sales breakeven point. 2. Use the following information to perform your calculations. a. Net Sales: $50,000.00 b. Contribution Margin: $20,000.00 c. Total Fixed Costs: $15,500.00 d. Unit Sales Price: $25.00 3. Provide the formula and write out the equation that you use for each calculation. a. Contribution Margin Rate: I b. Sales Dollar Breakeven Point: c. Unit Sales Breakeven Point: 1. Utilize the comparative income statement for the amounts needed. Al-Can Products, Inc. Comparative Income Statement For Years Ended December 31, 20xx and 20xx CURRENT YEAR Net Sales Cost of Merchandise Sold Gross Profit on Operations Total Operating Expenses Net Income Before Federal Income Tax Federal Income Tax Expense Net Income After Federal Income Tax Total Stockholders' Equity Net Sales Net Income After Tax I Stockholders' Equity $426,500.00 $268,700.00 $157,800.00 $110,800.00 $47,000.00 $7,100.00 $39,900.00 $195,000.00 Amount 2. Calculate the amount and percent of increase or decrease from the prior year to the current in the table below. State whether the trend is favorable or unfavorable. Increase (Decrease) PRIOR YEAR Percent $346,800.00 $245,200.00 $101,600.00 $85,200.00 $16,400.00 $2,500.00 $13,900.00 $186,000.00 Trend 11
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Related Book For
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
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