Question

In: Accounting

Nike makes shoes that sells 130 dollars per unit and incurs 66 dollars for variable manufacturing...

Nike makes shoes that sells 130 dollars per unit and incurs 66 dollars for variable manufacturing cost of 66 dollars per unit. The variable selling expense is 12 dollars per unit, annual fixed manufacturing costs are $450,000 and administrative/fixed selling are $226,000 per year.

Find the break even point in units and dollars using…

  1. Equation method
  2. Contribution margin per unit approach
  3. Contribution margin ratio approach
  4. Prepare contribution margin income statement for the break even sales volume.

1.

Break-even point in units

Break-even point in dollars

2.

Contribution margin per unit

Break-even point in units

Break-even point in dollars

3.

Contribution margin ratio

%

Break-even point in units

Break-even point in dollars

4.

Nike Manufacturing Company

Contribution income statement

Sales

Variable costs

Contribution margin

Fixed costs

Net income (loss)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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