PR 19-6B.xlsx - Problem 19(5-6B Name Section Score 100 Key...

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Problem 19(5)-6B Name: Section: Score: 100% Key Code: [Key code here] Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. Belmain Co. Estimated Income Statement For the Year Ended December 31, 20Y7 Sales $ 2,880,000 Cost of goods sold: Direct materials $ 600,000 Direct labor 360,000 Factory overhead 422,000 Cost of goods sold 1,382,000 Gross profit $ 1,498,000 Expenses: Selling expenses Sales salaries and commissions $ 388,000 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 14,300 Total selling expenses $ 522,300 Instructions
Administrative expenses: Office and officers' salaries $ 325,000 Supplies 54,000 Miscellaneous administrative expense 20,700 Total administrative expenses 399,700 Total expenses 922,000 Income from operations $ 576,000 2. Contribution margin ratio: Sales $ 2,880,000 Variable costs 12,000 $96 1,152,000 Contribution margin $ 1,728,000 Sales ¸ 2,880,000 Contribution margin ratio 60.0% 3. Break-even sales: Fixed costs $ 1,152,000 Unit contribution margin $240 $96 ¸ $144 Break-even sales (units) 8,000 Sale price ´ $240 Break-even sales (dollars) $ 1,920,000 4. For each unit level of sales, enter the total sales dollars and total costs. The chart at right will be plotted as you enter the amounts.

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