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# p5-2a - Name Date Instructor Course rd Managerial...

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FileName: f526bd92abe1ff63c008130da4569f38530b73a7.xls, Tab: Problem P5-2A, Page 1 of 2, 12/28/2011, 19:02:06 Name: Date: Instructor: Course: \$0.50 per 16 ounce bottle to retailers, who charge customers \$0.70 per bottle. Management estimates the following revenues and costs: Net sales \$2,500,000 Selling expenses - Variable \$90,000 Direct materials 360,000 Selling expenses - Fixed 200,000 Direct labor 650,000 Admin expenses - Variable 30,000 Mfg overhead - Variable 370,000 Admin expenses - Fixed 140,000 Mfg overhead - Fixed 260,000 Instructions: Net sales Formula Less: Variable costs Title Amount Title Amount Title Amount Title Formula Contribution margin Formula Fixed costs Title Amount Title Amount Title Amount Total fixed costs Formula Variable costs = Formula of sales or Formula per bottle Break-even point in units = Amount = Amount + Amount Break-even point in units = Formula units Break-even point in dollars = Amount X Amount = Formula Contribution margin ratio = ( Amount - Amount ) / Amount Contribution margin ratio = Formula Margin of safety ratio = ( Amount - Amount ) / Amount Contribution margin ratio = Formula \$120,000

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