Question

Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...

Break-Even Units, Contribution Margin Ratio, Margin of Safety

Khumbu Company's projected profit for the coming year is as follows:

Total Per Unit
Sales $1,700,000 $25.00
Total variable cost 476,000 7.00
Contribution margin $ 1,224,000 $ 18
Total fixed cost 504,560
Operating income $ 719,440

Required:

1. Compute the break-even point in units. If required, round your answer to nearest whole value.
units

2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value.
units

3. Compute the contribution margin ratio. If required, round your answer to nearest whole number.
%

Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected.
$

4. For the projected level of sales, compute the margin of safety in units.
units

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,331,250 $41.00 Total variable cost 999,375 12.30 Contribution margin $ 2,331,875 $ 28.7 Total fixed cost 1,009,369 Operating income $ 1,322,506 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,030,000 $40.00 Total variable cost 568,400 11.20 Contribution margin $ 1,461,600 $ 28.8 Total fixed cost 539,980 Operating income $ 921,620 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,150,000 $45.00 Total variable cost 819,000 11.70 Contribution margin $2,331,000 $ 33.3 Total fixed cost 819,000 Operating income $1,512,000 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. ______ units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year...
Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $3,543,500 $38.00 Total variable cost 1,133,920 12.16 Contribution margin $ 2,409,580 $ 25.84 Total fixed cost 1,020,528 Operating income $ 1,389,052 Required: . Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 11,700,000 Total variable cost 6,669,000 Contribution margin $ 5,031,000 Total fixed cost 2,871,024 Operating income $ 2,159,976 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Required: 1(a). Compute variable cost per unit. Round your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Round your answer to the nearest cent. $per unit...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s...
Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 11,700,000 Total variable cost 7,371,000 Contribution margin $ 4,329,000 Total fixed cost 2,705,144 Operating income $ 1,623,856 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent....
Hide or show questions Progress:10/29 items Calculator Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of...
Hide or show questions Progress:10/29 items Calculator Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 9,000,000 Total variable cost 5,310,000 Contribution margin $ 3,690,000 Total fixed cost 2,476,400 Operating income $ 1,213,600 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $per unit 1(b). Compute contribution margin per...
E6-10 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety [LO 6-2, 6-3] Last month,...
E6-10 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety [LO 6-2, 6-3] Last month, Laredo Company sold 540 units for $70 each. During the month, fixed costs were $4,704 and variable costs were $42 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo’s margin of safety in units and as a percentage of sales. Complete this question by entering your answers...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Sandoval Company prepared the...
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Sandoval Company prepared the following projected income statement: Sales $90,000 Total Variable cost 79,000 Contribution margin $11,000 Total Fixed cost 6,500 Operating income $4,500 Required: 1. Calculate the contribution margin ratio. Round your answer to the nearest whole number. % 2. Calculate the variable cost ratio. Round your answer to the nearest whole number. % 3. Calculate the break-even sales revenue for Sandoval. If required, round your answer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT