FINC 577 Chapter 5 Notes Outline

Chapter 5 42 example example 1 russel manufacturing

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Unformatted text preview: Manufacturing Inc. had sales of $2,200,000 for the first quarter of 2011. In making the sales, the company incurred the following following costs and expenses. Prepare a CVP income statement for the quarter ended March 31, 2011. Chapter 5-43 Example 1 Chapter 5-44 Example Example 2 Astoria Company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $187,200. Compute the break-even point in breakunits units using (a) the mathematical equation and (b) contribution contribution margin per unit. Chapter 5-45 Example 3 Logan Corp. had total variable costs of $180,000, total fixed costs of $160,000, and total revenues of $300,000. Compute the required sales in dollars dollars to break even. Chapter 5-46 Example Example 4 For Burns Company, variable costs are 60% of sales, and fixed costs are $195,000. Management’s net income goal is $75,000. Compute Compute the required sales in dollars needed to achieve achieve management’s target net income of $75,000. (Use the contribution margin approach.)...
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