ritatarlue24
18.10.2020 •
Mathematics
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage
Youngsville Industries Inc. expects to maintain the same inventories at the end of 20Y5 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows
Estimated Fixed Cost
Estimated Variable Cost (per unit sold)
Production Costs:
Direct Materials
$48
Direct Labor
$38
Factory Overhead
$150,000
$25
Selling Expenses:
Sales salaries and commissions
$125,000
$10
Advertising
$50,000
Travel
$15,000
Miscellaneous selling expense
$10,000
$2
Administrative Expenses:
Office and officers' salaries
$140,000
Supplies
$10,000
$5
Miscellaneous administrative expense
$10,000
$2
Total
$510,000
$130
It is expected that 22,175 units will be sold at a price of $170 a unit. Maximum sales within the relevant range are 27,500 units.
Solved
Show answers
More tips
- H Health and Medicine How to Reduce Sweating in the Heat and Beyond: Say Goodbye to Excessive Sweat...
- C Computers and Internet How to Download Movies from Torrents?...
- F Food and Cooking How to Make the Perfect Glühwein: Step-by-Step Guide...
- A Animals and plants How to Grow Lime from a Seed: Simple Tips and Interesting Facts...
- S Style and Beauty How to Properly Tie a Tie: 5 Simple Steps...
- C Computers and Internet Dynamically Assigned IP Address: What Is It and How Does It Work?...
- C Computers and Internet How to Check the Speed of My Internet?...
- H Health and Medicine 5 Simple Steps to Quit Smoking for Good...
- C Computers and Internet How to Download Videos from YouTube? Simple Steps to Download Any Content...
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
Answers on questions: Mathematics
- M Mathematics (x - 17.7) + 19.6 = 27.8 and an explanation...
- M Mathematics Describe how many unit fractions it takes to make 2-4...
- M Mathematics Solve the quadratic equation below for the exact values of x: 4x^2-5=75...
- M Mathematics A lake initially contains 2000 fish. Suppose that in the absence of predators or other causes of removal, the fish population increases by 8% each month. However, factoring...
- M Mathematics If m{1 = 55, what is m {ABC?...
- M Mathematics Solve the System using either Substitution or Elimination. Write the solution as an ordered pair. y = 8 - x y = 4.C – 2...
- M Mathematics Margret is more than 3 feet tall. Which inequality represents her height?...
- M Mathematics Need help with this, i m confused....
- M Mathematics Please help very easy, willbr />...
- M Mathematics −2((5+3)(−2+4)) i need help with 7th grade math...
Ответ:
Giving the following information:
Units sold= 450,000
Total Sales= $12,150,000
Total variable cost= $6,925,500
Total fixed cost= $3,242,673
First, we need to calculate the unitary selling price and variable cost. Then, we calculate the contribution margin.
Selling price= 12,150,000/450,000= $27
Unitary variable cost= 6,925,500/450,000= $15.39
Contribution margin per unit= 27 - 15.39= $11.61
To calculate the contribution margin ratio, we need to use the following formula:
Contribution margin ratio= contribution margin/ selling price
Contribution margin ratio= 11.61/27
Contribution margin ratio= 0.43
To calculate the break-even point both in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 3,242,673 / 11.61= 279,300 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 3,242,673/0.43= $7,541,100
Finally, we need to incorporate the desired profit to the break-even point formula:
Break-even point in units= (3,242,673 + 426,087) / 11.61
Break-even point in units= 316,000 units
Step-by-step explanation:
Ответ:
Answer
range
Step-by-step explanation:
ok hope it helps you