Project #47016 - Accounting 20 CVP

P20-35A

Kincaid Company sells flags with team logos. Kincaid has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00.

1. Prepare a contribution format income statement with columns for the contribution margin per unit and the contribution ratio, as explained in Chapter Materials item, "CVP Analysis for Problem Solving."  A course link is below.

 

Total Amount

Contribution Margin per Unit

Contribution Margin Ratio

Net Revenue

 

 

 

Less Variable Costs

 

 

 

Contribution Margin

 

 

 

Less Fixed Costs

 

 

 

Operating Income

 

 

 



2. Calculate the break even units and sales dollars.

 

3. Calculate the number of flags and sales dollars that must be sold to earn $33,000 in net operating income.

4. Prepare a contribution format income statement for sales of 72,000 flags.

5. The company is considering an expansion that wil increase fixed costs by 21% and variable costsby $.60 per flag.  Compute the new breakeven point in units and in dollars by creating a new contribution margin analysis, as in #1.  Should Kincaid undertake the expansion?  Why?

Subject Mathematics
Due By (Pacific Time) 11/10/2014 09:30 am
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy