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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 32
Break-even analysis Refer to the current information for Bay Area Cycle Co. in Mini-Exercise 12.4.
Required:
Calculate Bay Area Cycle's break-even point in units and total sales dollars. Calculate Bay Area Cycle's margin of safety and margin of safety ratio.
Reference Mini-Exercise 12.4:
CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.
Required:
Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? How many additional unit sales would be necessary to achieve operating income of $105,000?
Required:
Calculate Bay Area Cycle's break-even point in units and total sales dollars. Calculate Bay Area Cycle's margin of safety and margin of safety ratio.
Reference Mini-Exercise 12.4:
CVP analysis Current operating income for Bay Area Cycles Co. is $70,000. Selling price per unit is $100, the contribution margin ratio is 35%, and fixed expense is $280,000.
Required:
Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? How many additional unit sales would be necessary to achieve operating income of $105,000?
Explanation
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Verified
Breakeven point:
Break-even point at wh...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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