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P19-22 Breakeven

Price: $2.50


P19-22A Calculating cost-volume profit elements [45–60 min]
The budgets of four companies yield the following information:


  Blue Red Green Yellow
Sales revenue  960,000  ?   770,000  ? 
Variable costs  ?   132,000  462,000  162,000
Fixed costs  ?   145,000  220,000  ? 
Operating income  32,000  ?   ?   93,000
Units sold  160,000  11,000  ?   ? 
Contribution margin per unit  2.70  ?   77.00  16.00
Contribution margin ratio  ?   0.70  ?   0.40

Requirements
1. Fill in the blanks for each missing value. (Round the contribution margin per
unit to the nearest cent.)
2. Which company has the lowest breakeven point in sales dollars?
3. What causes the low breakeven point?

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