Question

The budgets of four companies yield the following​ information:

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​(Click the icon to view the budget information for the four​ companies.)Read the requirements

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.

Requirement 1. Fill in the blanks for each missing value. ​(Round the contribution margin per unit to the nearest cent. Use a minus sign or parentheses to enter an operating​ loss.)

	Up
Net Sales Revenue	$992,000
Variable Costs
Fixed Costs
Operating Income (Loss)	$42,500
Units Sold	155,000
Contribution Margin per Unit	$3.20
Contribution Margin Ratio		%

Down
144,000
144,000
9,000
60	%

Left
$1,242,500
994,000
114,000
$71.00
	%

Right
208,000
$44,400
$10.00
20	%

Requirements 2. and 3. Which company has the lowest breakeven point in sales​ dollars? What causes the low breakeven​ point?

Begin by showing the formula and then entering the amounts to calculate the breakeven point in sales dollars for each company. ​(Complete all answer boxes. Round the breakeven

pointlong dash—the

required sales in

dollarslong dash—up

to the nearest whole dollar. For​ example, $10.25 would be rounded to​ $11. Abbreviation​ used: CM​ = contribution​ margin.)

(

+

) /

=

Required sales in dollars

Up

(

+

) /

%

=

Down

(

+

) /

%

=

Left

(

+

) /

%

=

Right

(

+

) /

%

=

Which company has the lowest breakeven point in sales​ dollars? What causes the low breakeven​ point?

▼

Up Company

Down Company

Left Company

Right Company

has the lowest breakeven​ point, primarily due to

▼

its high fixed costs

its high sales price

its low fixed costs

.

Answer 1

Solution: