15 May (2)Assume if the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even point?(Omit the “$” sign in
Question
Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 18
1.Exercise 18-5 Predicting sales and variable costs using contribution margin L.O. C2
| Orlando Company management predicts that it will incur fixed costs of $250,000 and earn pretax income of $350,000 in the next period. Its expected contribution margin ratio is 60%. |
| Required: | |
| 1. | Compute the amount of total dollar sales.(Omit the “$” sign in your response.) |
| Total dollar sales |
| 2. | Compute the amount of total variable costs.(Omit the “$” sign in your response.) |
| Total variable costs |
rev: 03-04-11
2.
Exercise 18-10 Contribution margin, break-even, and CVP chart L.O. P2
| Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630,000. |
| (a) | Compute the company’s contribution margin.(Omit the “$” sign in your response.) |
| Contribution margin |
| (b) | Compute the company’s contribution margin ratio.(Omit the “%” sign in your response.) |
| Contribution margin ratio |
| (c) | Compute the company’s break-even point in units. |
| Break-even point |
| (d) | Compute the company’s break-even point in dollars of sales.(Omit the “$” sign in your response.) |
| Break-even point |
3.
Exercise 18-12 Income reporting and break-even analysis L.O. C2
| Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630,000. |
| (1) | Prepare a contribution margin income statement for Apollo Company at the break-even point.(Leave no cells blank – be certain to enter “0” wherever required. Input all amounts as positive values. Omit the “$” sign in your response.) |
| (2) | Assume if the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even point?(Omit the “$” sign in your respons |
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