Chapter 5 - = Net Income E 5-4 Sales ($750/pair * 200 pr) =...

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E 5-1 2000 2100 2200 Variable $440.00 $462.00 $484.00 .22/cup Fixed $1,200.00 $1,200.00 $1,200.00 1200 Total $1,640.00 $1,662.00 $1,684.00 Average Cost $0.82 $0.79 $0.77 E 5-3 Total Cost = Total Variable Cost + Total Fixed Costs Total Variable Cost = variable cost/unit * units Total Cost = (variable cost/unit * units) + Total Fixed Costs (Mixed Costs are part fixed, part variable - separate sixed portion from variable portion) Hi: (August) $5,148 = vc/u * 2,406 + TFC - Lo: (October) $1,588 = vc/u * 124 + TFC $3,560 = vc/u * 2282 1.560035 vc/u = $1.56 TFC = 1394.56 Contribution Income Statement Sales (price/unit * units sold) = Less: Variable Costs (vc/u * units sold) = Contribution Margin (cm/u * units sold) = Less: Fixed Costs xxxxxxxxxxxxxxxxxx
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Unformatted text preview: = Net Income E 5-4 Sales ($750/pair * 200 pr) = $150,000 Less: Variable Costs (($50 + $10 + $450) * 200) = ($102,000) Contribution Margin ($240 * 200 pr) $48,000 116.6667 $87,750 Less: Fixed Costs ($20,000 + $8,000) ($28,000) 283.3333 $212,250 Net Income $20,000 I had $30,000 in selling expenses Selling costs: $30,000 = ($ 50/u * 200 pairs) + TFC TFC = $30,000 - $10,000 = $20,000 I had admin expenses of $10,000 TVC = 20% * 10,000 = $2,000 Vc/u = $2,000/200 = $10/u TFC = 80% * 10,000 = $8,000 In order to go to break even we need to sell 117 pair of ski based on the Fixed Costs don't change and $240 benefit per pair Mixed Cost = ( variable cost/unit * units) + Total Fixed Costs...
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This note was uploaded on 03/27/2012 for the course ACCT 2302 taught by Professor Shall during the Spring '08 term at Texas A&M University, Corpus Christi.

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