Matthew_McCoy_Problem 22-2A

# Matthew_McCoy_Problem 22-2A - 10,000,000 330,000 11,000,000...

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Matthew McCoy Problem 22-2A Break-even point in units = Fixed costs/ Contribution margin per unit Contribution margin per unit = Sales price per unit - Total variable cost per unit \$200 - \$170 = \$30 per 100 yards  of HG rope as the contribution margin per unit Break-even point in units = \$330,000/ \$30 = 11,000 units Break-even point in dollars = Fixed costs/ Contribution margin ratio Contribution margin ratio = Contribution margin per unit/ Sales price per unit \$30/ \$200 = .15 as the contribution margin ratio Break-even point in dollars = \$330,000/ .15 = \$2,200,000 Volume (yards) Fixed costs Total costs Sales 0 330,000 330,000 0 1,000,000 330,000 2,030,000 2,000,000 1,100,000 330,000 2,200,000 2,200,000 2,000,000 330,000 3,730,000 4,000,000 2,158,823.53 330,000 4,000,000 3,000,000 330,000 4,000,000 330,000 5,000,000 330,000 6,000,000 330,000 7,000,000 330,000 8,000,000 330,000 9,000,000 330,000

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Unformatted text preview: 10,000,000 330,000 11,000,000 330,000 12,000,000 330,000 13,000,000 330,000 14,000,000 330,000 15,000,000 330,000 16,000,000 330,000 17,000,000 330,000 18,000,000 330,000 19,000,000 330,000 20,000,000 330,000 Break-even point: 1,100,000 yards, \$2,200,000 EXTREME EQUIPMENT COMPANY Forecasted Contribution Margin Income Statement (at Breake Sales (11,000 units X \$200) \$2,200,000 Variable costs (11,000 units X \$170) \$1,870,000 Contribution margin \$330,000 Fixed costs \$330,000 10,000,000 20,000,000 30,000,000 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 Fixed costs Total costs Sales Net income even)...
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## This note was uploaded on 09/24/2011 for the course ACCT 212 taught by Professor Sheik during the Spring '11 term at Mountain State.

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Matthew_McCoy_Problem 22-2A - 10,000,000 330,000 11,000,000...

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