Q1. Assume Altec Manufacturing Inc. has greatly exceeded the budget target.
Its CVP Operating Income Statement for 2022 is as follows:
Sales
Variable costs
Cost of goods sold
Selling & administrative expenses
Total variable costs
Contribution margin
Fixed costs
Cost of goods sold
Selling & administrative expenses
Total Fixed costs
Operating income
Required:
What is the seling price Altec needs to charge to earn the target operating income of $1,500,000? It expects to produce and sell 90,000 units in 2023, va
Please solve the problem using excel Goal Seek Funcions.
Solutions:
Selling Price
Variable cost
Cost of goods sold
Selling & administrative expenses
Total Variable costs
CM
Q
Altec Manufacturing Inc. Projected Income Statement
Projected Income Statement
Year Ending December 31, 2023
Sales Revenue
Variable costs
Contribution margin
Fixed costs
Net operating income
SP
Sales Volume
12,800,000
160 per unit
80,000 Units
Variable Cost per unit
110.15 per unit
19.422 per unit
8,812,020
1,553,800
10,365,820
2,434,180
453,494
960,057
1,413,551
1,020,629
121.165
110%
21.365 per unit
142.53
-142.53 per unit
90,000 Unit
