The following information is available from the accounting records of Eva Corporation: Fixed costs per period are

Question:

The following information is available from the accounting records of Eva Corporation: Fixed costs per period are $4800. Sales volume for the last period was $19 360, and variable costs were $13 552. Capacity per period is a sales volume of $32 000.
(a) Compute
(i) The ;
(ii) The contribution rate.
(b) Compute the break-even point
(i) In sales dollars;
(ii) As a percent of capacity.
(c) Draw a detailed break-even chart.
(d) For each of the following independent situations, determine the break-even point:
(i) Fixed costs are decreased by $600;
(ii) Fixed costs are increased to $5670 and variable costs are changed to
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...