Construct a cost-volume-profit chart on your own paper what

Assignment Help Accounting Basics

Reference no: EM13586791

Soldner Health Care Products Inc. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2014. A summary report of these estimates is as follows:

		Estimated Fixed Cost	Estimated Variable Cost (per unit sold)
Production costs:
	Direct materials		$28
	Direct labor		19
	Factory overhead	$910,500	14
Selling expenses:
	Sales salaries and commissions	189,200	6
	Advertising	64,000
	Travel	14,200
	Miscellaneous selling expense	15,600	6
Administrative expenses:
	Office and officers' salaries	185,000
	Supplies	22,800	2
	Miscellaneous administrative expense	21,420	3
	Total	$1,422,720	$78

It is expected that 8,360 units will be sold at a price of $390 a unit. Maximum sales within the relevant range are 10,000 units.

Required:

Hide

1. Prepare an estimated income statement for 2014.

2.What is the expected contribution margin ratio? Round to the nearest whole percent.%

3. Determine the break-even sales in units. units

4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?$

5. What is the expected margin of safety in dollars and as a percentage of sales?

Dollars:	$
Percentage: (Round to the nearest whole percent.)		%

6. Determine the operating leverage. Round to one decimal place.

Reference no: EM13586791

Questions Cloud

You have accumulated 12000 and are looking for the best : you have accumulated 12000 and are looking for the best rate of return that can be earned over the next year. a bank

If the company has an after-tax income goal of 1 billion : green rider makes three types of electric scooters. the companys total fixed cost is 1080000000. selling prices

What is a guaranteed payment how is it reported on form : what is a guaranteed payment? how is it reported on form 1065 and its various schedules? how is it reported to and by

Consider a small raindrop and a large raindrop falling : consider a small raindrop and a large raindrop falling through the atmosphere. compare their terminal speeds. what are

Construct a cost-volume-profit chart on your own paper what : soldner health care products inc. expects to maintain the same inventories at the end of 2014 as at the beginning of

Austin automotive sells an auto accessory for 180 per unit : austin automotive sells an auto accessory for 180 per unit. the companys variable cost per unit is 30 for direct

A solid sphere of weight 360 n rolls up an incline at an : question a solid sphere of weight 36.0 n rolls up an incline at an angle of 30.0deg. at the bottom of the incline the

At december 31 2013 for the microchip company for each of : at december 31 2013 for the microchip company for each of the following situations assume that no financial statements

Research the fundamental processes that occur within the : research the fundamental processes that occur within the production cycle. analyze how the processes will support the

User Account

All Pages