Question: Please help with the below question 2 Tabulation Corporation manufactures and sells two types of electronic calculators: EL-520 W and EL-620 T. The following data

Please help with the below question 2

Tabulation Corporation manufactures and sells two types of electronic calculators: EL-520 W and EL-620

T. The following data was gathered from last month's activities:

EL-520 W EL-620 T

Sales in units 5,000 3,000

Selling price per unit $50 $100

Variable production costs per unit $10 $26

Traceable fixed production costs $100,000 $150,000

Variable selling expenses per unit $5 $6

Traceable fixed selling expenses $5,000 $7,500

Allocated division administrative expenses $50,000 $60,000

Required:

1) a segmented income statement in the contribution format for last month, showing both

"Amount" and "Percent" columns for the company as a whole and for each model.

2) Why might it be very difficult to calculate separate break-even sales for each model?

3) Refer to the original data and, if necessary, the results of the segmented income statement

prepared in part (1) above. Calculate the total break-even sales (in both units AND dollars) for

last month, assuming that none of the fixed production costs and fixed selling expenses is

traceable. Allocate the total break-even sales between the two models.

4) Again, refer to the original data and, if necessary, the results of the segmented income

statement prepared in part (1) above. Calculate the total break-even sales (in both units AND

dollars) for last month, assuming that the "allocated" amounts of the company's administrative

expenses are actually traceable. Allocate the total break-even sales between the two models.

5) How reasonable are the total break-even sales numbers calculated in parts (3) and (4) given the

actual results for last month?

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