Homework 2

# Homework 2 - Homework#2 226 Spring 2010 NAME Section/Time...

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Homework #2, 226 Spring 2010 NAME:___________________ Section/Time: _____________ Please remember to staple this sheet to your HANDWRITTEN work and show as much work as  possible for credit. 1:    Carter is currently selling 20,000 toy cars for \$5.00 apiece and 30,000 toy trucks for \$8.00 apiece.  Each car has \$2.50 of VC and each truck has \$6.00 of VC.  She has total fixed costs for her operation  of \$120,000. a. Prepare a contribution margin income statement for her company in total (including both  products). b. What is her break even point in cars and trucks at this sales level and cost structure? c. What would her net income be in total if she sold 40,000 cars and 35,000 trucks? 2:   Luci has the following information relating to her water bill for the last year in her toy making business: Gallons Used Cost Q1        30,000 \$  9,500 Q2        34,000 \$13,000 Q3        25,000 \$  8,000 Q4        41,000 \$12,800                   a. What is her variable cost per gallon used?
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