If the company is able to reduce variable costs by 250 per

Reference no: EM13605546

The income statement for Bradford Machine Company for 2011 appears below. BRADFORD MACHINE COMPANY Income Statement For the Year Ended December 31, 2011 Sales (40,000 units) $1,000,000 Variable expenses 700,000 Contribution margin 300,000 Fixed expenses 345,000 Net income (loss) $ (45,000) Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers:

1. What was the company's break-even point in sales dollars in 2011?

2. How many additional units would the company have had to sell in 2012 in order to earn net income of $45,000?

3. If the company is able to reduce variable costs by $2.50 per unit in 2012 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $45,000?

Reference no: EM13605546

Questions Cloud

Create a program that asks the user for the values of x and : in engineering thermodynamics it is sometimes necessary to balance chemical reaction equations specifically for the

If sales are budgeted to be 150000 for march and 200000 for : big wheel inc. collects 25 of its sales on account in the month of the sale and 75 in the month following the sale. if

The cost of parking is 9 per day suppose that if you were : the cost of parking is 9 per day. suppose that if you were to park illegally the probability of getting a ticket is

Lutz corporation acquired a 100 business-use automobile : lutz corporation acquired a 100 business-use automobile macrs 5-year recovery on july 1 2012 for 64000. the company did

If the company is able to reduce variable costs by 250 per : the income statement for bradford machine company for 2011 appears below. bradford machine company income statement for

Interest has accrued at 8 on the long-term notes payable : interest has accrued at 8 on the long-term notes payable since july 1 2010. the next six-month interest payment at 9 on

Assess the use of qualitative data to support business : assess the use of qualitative data to support business decision making. consider different tyoes of qualitative data

Te inventory at may 1 and the costs charged to work in : the inventory at may 1 and the costs charged to work in process--department b during may for stella company are as

If the wait time is less than 10 minutes you pay 2 if it : the wait time minutes you experience waiting for a bus is modeled by t10x-10 x is randon variable have prob. density

User Account

All Pages