Thomas Scott sells gift baskets filled with various fruits. Each basket sells for $35. Thomas estimates...

 

Transcribed Image Text:

Thomas Scott sells gift baskets filled with various fruits. Each basket sells for $35. Thomas estimates his variable costs to be $28 per basket and fixed costs for the year to be $15,400. From the data given, calculate: a) the number of baskets sold at the break even point b) the break even point in sales dollars c) the contribution margin ratio d) the number of baskets needed to be sold to eam a net income of $38,500 e) the margin of safety in sales dollars if Bob sells 3,000 baskets f) the degree of operating leverage if Bob sells 6,600 baskets (make an income statement first) g) the break even point in baskets if variable costs increase by $1 per unit and fixed costs increase by S500 Thomas Scott sells gift baskets filled with various fruits. Each basket sells for $35. Thomas estimates his variable costs to be $28 per basket and fixed costs for the year to be $15,400. From the data given, calculate: a) the number of baskets sold at the break even point b) the break even point in sales dollars c) the contribution margin ratio d) the number of baskets needed to be sold to eam a net income of $38,500 e) the margin of safety in sales dollars if Bob sells 3,000 baskets f) the degree of operating leverage if Bob sells 6,600 baskets (make an income statement first) g) the break even point in baskets if variable costs increase by $1 per unit and fixed costs increase by S500

Answer rating: 100% (QA)

Answer Formulas Contribution margin Selling price Variable cost Contribution margin rati... View the full answer