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Problem 16-29 BREAK-EVEN IN SALES REVENUE, VARIABLE-COSTING RATIO, CONTRIBUTION MARGIN RATIO, MARGIN OF SAFETY Furyk Company runs a driving range and...

see attached for question for cost accounting

Problem 16-29 BREAK-EVEN IN SALES REVENUE, VARIABLE-COSTING RATIO, CONTRIBUTION MARGIN RATIO, MARGIN OF SAFETY Furyk Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $800,000 Less: Variable expenses 344,000 Contribution margin $456,000 Less: Fixed expenses 310,000 Income before taxes $146,000 Less: Income taxes 51,100 Net income $ 94,900 Required: 1. What is Furyk’s variable cost ratio? Its contribution margin ratio? 2. Suppose Furyk’s actual revenues are $150,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Furyk earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Furyk generate to earn a before-tax profit of $120,000? An after-tax profit of $120,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer
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8412482.xlsx

SOLUTION:
1. What is Furyk’s variable cost ratio? Its contribution margin ratio? Particulars
Sales Revenue
Less:Variable Costs
Contribution
Less: Fixed Expenses
Operating Income Profit/Volume...

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