Jack company operating at full capacity. - 94634

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  • From: Business, Accounting
  • Posted on: Sun 03 Jan, 2016
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Jack company operating at full capacity. Sold 38,000 units at a price of $20 per unit during 2014. It’s full cost income statements for 2014 is as follows. Sales $ 760,000 Cost of Goods Sold variable cost of goods sold 80,000 Fixed cost of goods sold 120,000 Gross profit 560,000 Operating Expenses Selling Expenses variable Selling expenses 30,000 Fixed Selling expenses 70,000 Administrative Expenses variable Administrative expenses 14,000 Fixed Administrative expenses 6,000 Total Operating Expenses 120,000 Operating profit $440,000 Instructions: Determine for 2014 Use variable Income Statements table (differentiate between Variable and expenses) 1- Calculate the break even Table ( assuming that the relative range was between 5000-50,000 units of production , increments by 5,000 units) 2- Break-even chart (line) 3- Prepare the variable cost (Contribution Margin (CM)) statement. 4- Create a table like we created. 5- Create Cost volume profit analysis table. (assume sales price range between 20-60) 6- You have to support your calculation with chart for Break Even 7- Extra credit calculation ( if you solve 1-4, every student will have 10 points more; You have to create a range(s). 1- Break-even costs (dollar) 2- Break -even units 3- Contribution margin 4- Contribution margin ratio Hint BE unit= Fixed cost/ CM CM= sales- (variable cost of goods sold + variable expenses) BE dollar = Fixed cost /CM ratio CM ratio= CM/ sales
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