ACCT321 - E3-20

ACCT321 - E3-20 - Variable costs 1,500,000 Fixed costs...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 a. Revenues $2,500,000 Variable costs 1,500,000 Fixed costs 900,000 Operating income 100,000 b. Contribution margin = Contribution margin per unit X # of units sold = $0.20 X 5,000,000 = $1,000,000 Contribution = $0.20 = 40% margin % $0.50 Breakeven = Fixed costs = $900,000 = $2,250,000 revenues Contribution margin % 40% 2 Revenues $2,500,000 Variable costs 1,700,000 Fixed costs 900,000 Operating income (100,000) 3 Revenues $2,750,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Variable costs 1,500,000 Fixed costs 990,000 Operating income 260,000 4 Revenues $2,800,000 Variable costs 1,350,000 Fixed costs 720,000 Operating income 730,000 5 Breakeven = Fixed costs = 990,000 = 4,950,000 number of units Contribution margin per unit $0.20 6 Breakeven = Fixed costs = 920,000 = 3,680,000 number of units Contribution margin per unit $0.25 units units...
View Full Document

Page1 / 2

ACCT321 - E3-20 - Variable costs 1,500,000 Fixed costs...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online