18) Managerial Financial Accounting Assignments AE4-12 Solution

18) Managerial Financial Accounting Assignments AE4-12 Solution

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AE4-12
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CVP Analysis, Profit Equation [LO 3] Clyde's Marina has estimated that fixed costs per month are $300,360 and variable cost per dollar of sales is $0.40. What is the break-even point per month in sales dollars? $ 500,600 AE4-12 Given that variable cost per dollar of sales is $0.40, the contribution margin per dollar of sales (i.e., the contribution margin ratio) is $0.60. The break-even point equals fixed cost divided by the contribution margin ratio. Thus, the break-even point is
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Unformatted text preview: $500,600 [i.e., $300,360 0.60 = $500,600]. What level of sales dollars is needed for a monthly profit of $69,780? $ 616,900 AE4-12 ($300,360 + $69,780) 0.60 = $616,900 For the month of July, the marina anticipates sales of $1,041,000. What is the expected level of profit? $ 324,240 Click here if you would like to Show Work for this question AE4-12 The expected level of profit is: ($1,041,000 0.60) - $300,360 = $324,240 ....
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This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.

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18) Managerial Financial Accounting Assignments AE4-12 Solution

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