Assessment 6 Instructions: Analysis and Charting

profilejess22
cf_analysis_and_charting_template.xlsx
Home>Business & Finance homework help>Accounting homework help>Assessment 6 Instructions: Analysis and Charting

Problem 1

BUS-FPX4061 - Managerial Accounting Principles
Assessment 6: Analysis and Charting Worksheet
Problem 1 Input values
Solve the given problem based on the following information.
Crouch Corp. manufactures and markets various mountaineering products. Company name Crouch Corp.
Crouch Corp.'s managers are looking at the future of Product XYZ, which has Product name XYZ
not been as profitable as anticipated. Next year, the company plans to sell Units sold 1,500
1,500 units of Product XYZ at a price of $220 each. The fixed costs are projected Price per unit $220
to be $225,000, for up to a maximum capacity of 4,500 units of Product XYZ for the year. Fixed costs $225,000
Variable costs are projected to be $95 per unit. Maximum capacity (in units) 4,500
Variable costs per unit $95
Calculate Product XYZ's break-even point in:
·         Sales units
·         Sales dollars
Round the contribution margin ratio and the break-even point to two decimal places.
(a) Break-even point in sales units = Fixed costs / Contribution margin per unit
(Contribution margin per unit = Selling price per unit – Variable cost per unit)
(b) Break-even point in sales dollars = Fixed costs / Contribution margin ratio
(Contribution margin ratio = Contribution margin per unit / Selling price per unit)

Problem 2

Problem 2 Input values
Solve the given problem based on the following information.
Crouch Corp. manufactures and markets various mountaineering products. Company name Crouch Corp.
Crouch Corp.'s managers are looking at the future of Product XYZ, which has Product name XYZ
not been as profitable as anticipated. Next year, the company plans to sell Units sold 1,500
1,500 units of Product XYZ at a price of $220 each. The fixed costs are projected Price per unit $220
to be $225,000, for up to a maximum capacity of 4,500 units of Product XYZ for the year. Fixed costs $225,000
Variable costs are projected to be $55 per unit. Maximum capacity (in units) 4,500
Variable costs per unit $55
Create a contribution margin income statement at the break-even point, including:
·         Sales
·         Variable costs
·         Fixed costs
Round the numbers to the nearest whole number.
Crouch Corp. Contribution Margin Income Statement (at break-even point) for Product XYZ
Sales
Less: Variable cost
Contribution margin
Less: Fixed costs (given)
Net income