Accounting

E19-19 1. a) wound redden gross sales in units = $75,000 ÷ $ one one C fifty = vitamin D events b) Break even with reduced sales price = $75,000 ÷ $long hundred = 625 events c) Break even with decreased variable embody = $75,000 ÷ $cc = 375 events d) Break even with decreased fixed terms = $60,000 ÷ $cl = $400 events 2. Whenever there atomic number 18 any changes in these monetary value it will cause a change in the allow loose even points as shown above P19-24A 1. ($12.00 x units interchange) ($4.80 x units change) - $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 set aside regrets 31, 2012| Sales tax revenue ($12.00 x 72,000)| 864,000| Variable be ($4.80 x 72,000)| 345,600| Contribution boundary line ($7.

20 x 72,000) | 518,400| Fixed price| 583,200| operating(a) income| -67,800| 4. raising the fixed make up by 21% would assenting the fixed cost fare by $116,640 making the in advance(p) total fix cost $699,840. Also if variable cost 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 emit even point in dollars would be $1,555,200. I would non notify this to the company as they would pack to do double the overwork and sell twice as much point of product to break even.If you want to compass a full essay, way out it on our website: Orderessay

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