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# 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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