Contribution Income Statement and AnalysisPicnic Time produces a

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School
Western Governors University **We aren't endorsed by this school
Course
ACCOUNTING MANAGERIAL
Subject
Accounting
Date
Nov 17, 2023
Pages
2
Uploaded by PresidentBraverySkunk32 on coursehero.com
Contribution Income Statement and Analysis Picnic Time produces a picnic basket that is sold for $132 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow. REQUIRED a. Prepare a contribution income statement for July. Answer Answer Answer Answer Answer Answer Answer Answer Answer
b. Determine the break-even point in sales dollars. Note: Do not round intermediate calculations Note: Round up to the nearest dollar, enter $80 for $79.2 $Answer c. Suppose the cost of labor is expected to increase next year. How will this affect the break-even point? Break-even point will AnswerDecreaseIncreaseNot change d. Determine July's margin of safety in sales dollars. $Answer e. What dollar sales volume is currently required to obtain a before-tax profit of $120,000? Note: Do not round intermediate calculations Note: Round up to the nearest dollar, enter $80 for $79.2 $Answer Variable Cost per UnitFixed Costs per MonthManufacturing:Manufacturing overhead$36,000Direct materials.$33Selling and administrative84,000Direct labor23Total$120,000Manufacturing overhead13$69Selling and administrative4Total$73
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