Texts: BE22.4 (LO 2) Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level.
Miles Driven: 8,000 7,500 8,500 8,200
Total Cost: $14,150 $13,500 $15,000 $14,490
January February March April
Compute the variable and fixed cost elements using the high-low method.
BE22.6 (LO 3) Determine the missing amounts.
Determine missing amounts for contribution margin.
Unit Selling Price: $640 $300 (o)
Unit Variable Costs: $352 (c) (f)
Unit Contribution Margin: (e) $93 $325
Contribution Margin Ratio: (q) (p) 25%
1.
2.
3.
BE22.8 (LO 4) Rice Company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.
Compute the break-even point.
BE22.9 (LO ) Presto Corp. had total variable costs of $180,000, total fixed costs of $110,000, and total revenues of $300,000. Compute the required sales in dollars to break even.
Compute the break-even point.
BE22.10 (LO 5) For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management's net income goal is $75,000. Compute the required sales in dollars needed to achieve management's target net income of $75,000. (Use the contribution margin approach.)
Compute sales for target net income.
BE22.11 (LO 5) For Astoria Company, actual sales are $1,000,000, and break-even sales are $800,000. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio.
Compute the margin of safety and the margin of safety ratio.
