The following information pertains to Crescent City, a lawn mower manufacturer: 1. Budgeted production costs for...

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The following information pertains to Crescent City, a lawn mower manufacturer: 1. Budgeted production costs for the coming year: a. Direct materials per mower $ b. Direct labor per mower c. Variable overhead per mower d. Total fixed overhead 250 130 70 33,500 2. Budgeted selling and administrative costs for the coming year: a. Fixed selling & adm expense b. Sales commission per mower Instructions for Project 1: $ 52,900 50 3. In the coming year, Crescent City plans to produce and sell 1,500 mowers at a price of $590 each. 1. Prepare a CPV income statement. 2. Calculate the breakeven point in units and sales dollars. 3. Calculate the margin of safety. 4. Calculate the margin of safety ratio. 5. If Crescent City wants to earn net income of $100,000, how many units must it sell? The following information pertains to Crescent City, a lawn mower manufacturer: 1. Budgeted production costs for the coming year: a. Direct materials per mower $ b. Direct labor per mower c. Variable overhead per mower d. Total fixed overhead 250 130 70 33,500 2. Budgeted selling and administrative costs for the coming year: a. Fixed selling & adm expense b. Sales commission per mower Instructions for Project 1: $ 52,900 50 3. In the coming year, Crescent City plans to produce and sell 1,500 mowers at a price of $590 each. 1. Prepare a CPV income statement. 2. Calculate the breakeven point in units and sales dollars. 3. Calculate the margin of safety. 4. Calculate the margin of safety ratio. 5. If Crescent City wants to earn net income of $100,000, how many units must it sell?

Answer rating: 100% (QA)

To prepare a CostVolumeProfit CVP income statement for Crescent City we need to calculate various costs and revenues based on the given information Le... View the full answer