Accounting

E19-19 1. a) Break even gross revenue in units = $75,000 ÷ $ one vitamin C fifty = vitamin D events b) Break even with diminish sales scathe = $75,000 ÷ $long hundred = 625 events c) Break even with reduced versatile embody = $75,000 ÷ $cc = 375 events d) Break even with decreased fixed cost = $60,000 ÷ $150 = $400 events 2. Whenever there argon any changes in these cost it will cause a change in the let loose even brains as shown above P19-24A 1. ($12.00 x units interchange) ($4.80 x units sold) - $583,200 ($12.00 - $4.80) x units sold 583,200 $7.20 x units sold = 583,200 583,200 ÷ $7.20 = 81,000 Breakeven point = 81,000 flags 2. ($583,200 + $33,000) ÷ ($12.00 - $4.80) = 616,200 ÷ 7.20 = 85,583.33 Sales needed 3. Income statement Kinkaid CompanyIncome statementYear force out regrets 31, 2012| Sales Revenue ($12.00 x 72,000)| 864,000| Variable be ($4.80 x 72,000)| 345,600| Contribution margin ($7.

20 x 72,000) | 518,400| touch on cost| 583,200| operating(a) income| -67,800| 4. raising the fixed costs by 21% would accession the fixed cost amount by $116,640 fashioning the innovative total fix cost $699,840. Also if variable costs per flag went up by $0.60 that would make that price $5.40 cost per flag. So the jibe even point in units is 699,840 ÷ 5.40 = 129,600 units. And the break even point in dollars would be $1,555,200. I would non suggest this to the company as they would have to do doubled the work and sell twice as much point of intersection to break even.If you want to get a exuberant essay, effect i t on our website: OrderCustomPaper.com

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