I-18.02 Problem

I-18.02 Problem - 400,000 50,000 50,000 Then, decide which...

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I-18.02 Form a five-person team. Each team member should assume responsibility for calculating the unknown values for one of the following scenarios. Scenario Sales Total Variable Costs Total Fixed Costs Net Income 1 ? (50,000 units) $500,000 $180,000 $120,000 2 $700,000 (75,000 units) ? 100,000 175,000 3 $400,000 (40,000 units) 80,000 ? 130,000 4 $900,000 (90,000 units) 475,000 175,000 ? 5 ? (20,000 units)
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Unformatted text preview: 400,000 50,000 50,000 Then, decide which team member's scenario has the: Lowest break-even point in units Highest net income Lowest contribution margin per unit Highest fixed costs Highest total variable costs Discuss the cost structure attributes for each scenario and debate which represents a company you would most wish to own....
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