Contribution Margin Income Statement by cru18323

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									                           Student Name:
                                   Class:
                                            Problem 18-02A

             EXTREME EQUIPMENT CO.

Break-even in sales units:

 Fixed costs
 Contribution margin per unit
 Break-even point in units:

Break-even in sales dollars:

 Fixed costs
 Contribution margin ratio
 Break-even point in sales dollars:


            EXTREME EQUIPMENT CO.
        Contribution Margin Income Statement
             (at Break-Even) Product HG

Sales
Variable costs
Contribution margin
Fixed costs
Net income
Given Data P18-02A:

             EXTREME EQUIPMENT CO.

Selling price per 100 yards               $         200
Fixed costs                                     330,000
Maximum capacity in yards                     2,000,000
Forecasted variable costs per 100 yards             170

Check figures:
(1) Break-even sales                      $ 2,200,000
    Units                                      11,000
                                             Student Name:
                                                     Class:
                                                              Problem 18-06A

                         CALYPSO COMPANY
                       Computation of Break-Even

New variable costs and expenses for both Plans:
 Materials costs
 Direct labor cost
 Overhead variable costs
 Selling and admin. costs
 Total variable costs

Plan 1:
 Selling price
 Contribution margin
 Contribution margin ratio
 Total fixed costs
 Break-even (dollars)

Plan 2:
 Selling price
 Contribution margin
 Contribution margin ratio
 Total fixed costs
 Break-even (dollars)


                            CALYPSO COMPANY
                Forecasted Contribution Margin Income Statement

                                         Plan 1                       Plan 2

                                                    Total
                                  Per Unit          Units      Per Unit        Units
Sales
Variable costs
 Contribution margin
Fixed costs
Income before taxes
Income taxes
Net income
Given Data P18-06A:

               CALYPSO COMPANY

Units sold                                    60,000
Price per unit                           $        20
Fixed manufacturing costs                     97,500
Fixed selling and admin. expenses            157,500
Variable selling and administrative
  expenses per unit:
  Material                                      8.00
  Direct labor                                  5.00
  Variable manufacturing overhead               1.60
  Variable selling and admin. expenses          0.40
Cost decreases using new material:
  Material costs                                 50%
  Direct labor costs                             60%
Factory capacity in units                     65,000
Plan 1:
  Price and sales levels do not change
Plan 2:
  Price increase                                25%
  Unit sales volume decrease                    15%
Income tax rate                                 30%

Check figure:
(1) Break-even: Plan 1                   $ 425,000
    Break-even: Plan 2                     375,000
(2) Net income: Plan 1                     325,500
    Net income: Plan 2                     428,400

								
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