ButovaS_P22-2A

ButovaS_P22-2A - 1 (b) 1,209,000 / 1,808,000 = 67% 0.36 per...

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1130 Name Svetlana Butova Problem 22-2A Section Date 3/27/2009 Utech Company (a) Utech Company CVP Income Statement (Estimated) For the Year Ending December 31, 2008 1 Net sales 1,808,000 1 2 Variable expenses  2 3 Cost of goods sold 1,113,000 3 4 Selling expenses 74,000 4 5 Administrative expenses 22,000 5 6        Total variable expenses 1,209,000 6 7 Contribution margin. 599,000 7 8 Fixed expenses  8 9         Cost of goods sold 291,000 9 10         Selling expenses 69,000 10 11         Administrative expenses 61,000 11 12 Total fixed expenses 421,000 12 13 Net income 178,000 13 14 14 15 15 (b), (c), and (d)
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Unformatted text preview: 1 (b) 1,209,000 / 1,808,000 = 67% 0.36 per botle (0.54 x 67%) 1 2 2 3 3 4 (1) Break-even sales in units (2) Break-even sales in dollars 4 5 0.54x= 0.36x + 421,000 2,338,889 units x 0.54 = 1,263,000 5 6 0.18x = 421,000 6 7 x = 2,338,889 units 7 8 8 9 (c) Contribution margin ratio 9 10 10 11 0.54 / 0.36 = 33% 11 12 12 13 Margin of safety ratio 13 14 (1,808,000- 1,263,000)/ 1,808,000 =30% 14 15 15 16 16 17 (d) Required sales 17 18 18 19 (421,000+ 400,000) / 0.36 = 2,280,556 19 20 20 1130 21 21...
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ButovaS_P22-2A - 1 (b) 1,209,000 / 1,808,000 = 67% 0.36 per...

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