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Jack company operating at full capacity.




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


Paper#73634 | Written in 18-Jul-2015

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