BUSN6070_Week4Assignment_Ch6,7_Reeves

# BUSN6070_Week4Assignment_Ch6,7_Reeves - BUSN 6070 Amber...

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BUSN 6070 Amber Reeves Week 4 Assignment Chapter 6: Pg. 203: #15, 16 Pg. 205/206: #22, 25 Pg. 207/210: # 31, 38 15) 16) 22) Total Revenues \$ 5,000,000.00 Total FC \$ 1,000,000.00 Total Variable \$ 3,000,000.00 Total Prod. & Sol 1,000,000 units a. Selling Price = \$ 5.00 b. VC per unit = \$ 3.00 c. Cont. Margin Per \$ 2.00 \$ 1,000,000.00 d. Break Even Point \$ 500,000.00 e. Income Tax Rate 40% After Tax OP 1,200,000.00 Before Tax Profit 2000000 Unit Sales 1,500,000.00 units 25) Chicken Steak Selling Price per \$4 \$6 VC per unit \$2 \$3 Expected Sales 200,000 300,000 Total FC \$200,000 a. Sales Revenue \$800,000 \$1,800,000 VC \$400,000 \$900,000 Contribution Ma \$400,000 \$900,000 \$1,300,000 Fc 200,000 In order to the make the CVP model work there are three assumptions that are required include separating total costs into fixed and variable components, that cost and revenue throughout the relevant range of activity, and that product mix reaminas constant. Multi a constant product mix so that the break-even point remains unique for multiple produc The sum of the break-even quantities for each company's product line would depend on allocated to that product line. It would depend on what percentage of total fixed costs w product line. If the arbitual allocation changes, then it changes the break-even because mix you need to break-even.

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Profit \$1,100,000.00 31) Basic

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