# 21-6B_22e - 5 Margin of safety Expected sales(in dollars...

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Problem 21-6B Name: Section: Enter the appropriate amount in the shaded cells below. A red asterisk (*) will appear above, below or to the right of an incorrect amount in the outlined cells. 1. LOUMIS HOME CARE PRODUCTS INC. Estimated Income Statement For the Year Ending December 31, 2008 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Travel Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total administrative expenses Total expenses Income from operations 2. Contribution margin ratio = - = 3. Break-even sales (units) = = 4. (Click the tab at the bottom of the screen to use the "Cost-volume-profit chart" worksheet to complete require

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Unformatted text preview: 5. Margin of safety: Expected sales (in dollars) Break-even point (in dollars) Margin of safety (in dollars) or Margin of safety (in percent) = = 6. Operating leverage = = ement #4.) Problem 21-6B Name: Section: 4. Use the Autoshapes feature at the bottom of the screen to construct a cost-volume-profit chart indicating the Click on "AutoShapes" on the menu bar at the bottom of the screen, then select the "lines" option. Use the straight line function to sketch the total revenue and total cost functions. \$6,000,000 \$5,000,000 \$4,000,000 \$3,000,000 \$2,000,000 \$1,000,000 \$0 1,000 2,000 3,000 4,000 5,000 break-even point. 6,000 7,000 8,000 9,000 10,000...
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## This note was uploaded on 03/12/2011 for the course ACCT 2011 taught by Professor Field during the Fall '09 term at University of Minnesota Morris.

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21-6B_22e - 5 Margin of safety Expected sales(in dollars...

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