Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales volume can be expressed in either units or dollars, use units for your chart. Complete the Chart Tickler Data Table to include a column for profits. Use this table as a basis for preparing the chart. Cost-Volume-Profit Analysis Data Section Income Statement in a Contribution Margin Fixed Variable Particulars Amounts Production costs Projected unit sales 120,000 Direct materials $2.30 Selling price per unit $16.00 Direct labor 4.70 Less Vairable Cost Factory overhead $225,000 3.00 Direct materials $2.30 Selling expenses Direct labor 4.70 Sales salaries & commissions 97,000 0.75 Factory overhead 3.00 Advertising 47,500 Sales salaries & commissions 0.75 Miscellaneous selling expense 16,200 Supplies 0.25 General expenses Total Variable Cost $11.00 Office salaries 92,000 Contribution Margin per Unit $5.00 Supplies 12,300 0.25 Contribution $600,000.00 Miscellaneous general expense 15,000 Less Fixed Costs $225,000 $505,000 $11.00 Factory overhead 97,000 Sales salaries & commissions 47,500 Projected unit sales 120,000 Advertising 16,200 Selling price per unit $16.00 Miscellaneous selling expense 92,000 Office salaries 12,300 Target net income $250,000 Supplies 15,000 Miscellaneous general expense $505,000 Answer Section Total Fixed Costs Contribution margin per unit $5.00 Projected as shown in the sum given $95,000.00 Contribution margin ratio 31.25% Break-even point in units 101,000 Units needed to achieve target net income 151,000 Break-even point in dollars $1,616,000 Sales dollars needed to achieve target net income $2,416,000 Net income based on projected unit sales (cell C22) $95,000

Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales...

Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales volume can be expressed in either units or dollars, use units for your chart. Complete the Chart Tickler Data Table to include a column for profits. Use this table as a basis for preparing the chart.

Cost-Volume-Profit Analysis

Data Section			Income Statement in a Contribution Margin

	Fixed	Variable	Particulars	Amounts
Production costs			Projected unit sales		120,000
Direct materials		$2.30	Selling price per unit		$16.00
Direct labor		4.70	Less Vairable Cost
Factory overhead	$225,000	3.00	Direct materials	$2.30
Selling expenses			Direct labor	4.70
Sales salaries & commissions	97,000	0.75	Factory overhead	3.00
Advertising	47,500		Sales salaries & commissions	0.75
Miscellaneous selling expense	16,200		Supplies	0.25
General expenses			Total Variable Cost		$11.00
Office salaries	92,000		Contribution Margin per Unit		$5.00
Supplies	12,300	0.25	Contribution		$600,000.00
Miscellaneous general expense	15,000		Less Fixed Costs	$225,000
	$505,000	$11.00	Factory overhead	97,000
			Sales salaries & commissions	47,500
Projected unit sales		120,000	Advertising	16,200
Selling price per unit		$16.00	Miscellaneous selling expense	92,000
			Office salaries	12,300
Target net income		$250,000	Supplies	15,000
			Miscellaneous general expense		$505,000
Answer Section			Total Fixed Costs

Contribution margin per unit		$5.00	Projected as shown in the sum given		$95,000.00
Contribution margin ratio		31.25%

Break-even point in units		101,000
Units needed to achieve target net income		151,000

Break-even point in dollars		$1,616,000
Sales dollars needed to achieve target net income		$2,416,000

Net income based on projected unit sales (cell C22)		$95,000

Jun 02, 2022

SOLUTION.PDF

Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and sales volume is plotted on the X-axis. This is commonly called a profit/volume chart. Although sales...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment