adrianvigil6400
29.10.2021 •
Business
The following information pertains to Fun in the Sun, Inc., a beach ball manufacturer:
Budgeted production costs for the coming year:
Direct materials per ball
Direct labor
ball
Variable overhead per ball
Total fixed overhead
per
$ 5
3
7
47,140
MN
Budgeted selling and administrative costs for the coming year:
Fixed selling & admin expense
$ 23,350
Shipping cost per ball
2
In the coming year, Fun in the Sun plans to produce and
sell 7,100 beach balls at a price of $31 each.
Instructions for Project 3:
1. Prepare a CVP 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 Fun in the Sun wants to earn net income of $50,000, how many units must
it sell?
Solved
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