{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter7Solution

# Chapter7Solution - Excel Templates Chapter 7 Student Name...

This preview shows pages 1–4. Sign up to view the full content.

Excel Templates Chapter 7 Student Name: <Type your name here> Class: <Type your class here>

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

View Full Document
Problem 7-18 Given Data STRATFORD COMPANY Unit price \$15 Variable cost per unit 6 Annual fixed costs 180,000 For Part 3: Estimated sales increase \$45,000 For Part 4: Operating results last year: Sales \$360,000 Less variable expenses 144,000 Contribution margin 216,000 Less fixed expenses 180,000 Operating income \$36,000 Expected percentage sales increase next year 15% For Part 5: Units sold last year 28,000 Percentage reduction in sales price 10% Increase in advertising expense \$70,000 Expected percentage increase in sales 50% For Part 6: Units sold last year 28,000 Increase in sales commission per unit \$2.00 % increase in sales 100%
<Type your name here> <Type your class here> Excel Templates Chapter 7 Problem 7-18 Part 1 Contribution margin ratio: Per Unit Percent Selling price \$15.00 100% Variable expenses 6.00 40% Contribution margin \$9.00 60% Part 2 Break-even point in sales dollars: Fixed costs \$180,000 ÷ Contribution margin ratio 60% Break-even point in sales dollars \$300,000 Part 3

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}