requirements 2 and 3 The budgets of four companies yield the

requirements 2 and 3

The budgets of four companies yield the following information EEB (Click the icon to view the budget information for the four companies ) Read the require Data Table Requiremants Requirement 1. Fi Company 1. Fill in the blanks for each missing value. (Round the contribution margin per Net Sales Revenu Variable Costs Fixed Costs unit to the nearest cent.) 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point? Beach Lake Mountain Valley $ (0) (a) 60,000 525,000 100800 S (g) S 31,500 Net Sales Revenue $ 1615,000 S (d) 5 1050,000 Operating Income Variable Costs (b) 232.000 260,000 Print Done Units Sold Fixed Costs S(e) 170,00010,000 mtribution Marg -Operating Income (Loss) S 285,600 Contribution MargiUnits Sold Requirements 2 Begin by showing S S 75.00 S 80% 900 point? 30% 3.80 Contribution Margin Ratio any (Conmplete all answer boxes Round the breakeven point -the required sales in dollarsup to the nearest whole dola Print Done Choose trom any list or enter any number in the input fields and then continue to the next question

Solution

Answer 1. Company Beach Lake Mountain Valley Net Sales Revenue                      1,615,000.00                      300,000.00                      1,050,000.00                    144,000.00 $60,000 / 20% $100,800 / 70% Variable Costs                      2,261,000.00                        60,000.00                          525,000.00                    100,800.00 $1,615,000 - $646,000 Contribution Margin                          646,000.00                      240,000.00                          525,000.00                      43,200.00 170,000 X $3.80 $60,000 / 80% $1,050,000 - $525,000 $144,000 X 30% Fixed Costs                          360,400.00                      232,000.00                          260,000.00                      11,700.00 $646,000 - $285,600 $43,200 - $31,500 Operating Income (Loss)                          285,600.00                           8,000.00                          265,000.00                      31,500.00 $240,000 - $232,000 $525,000 - $260,000 Units Sold                          170,000.00                        10,000.00                              7,000.00                      16,000.00 $525,000 / $ $144,000 / $9 Contribution Margin Per Unit                                       3.80                                 24.00                                    75.00                                 9.00 $240,000 / 10,000 Contribution Margin Ratio 40% 80% 50% 30% $646,000 / $1,615,000 $525,000 / $1,050,000 Answer 2. BEP (In $) = Fixed Costs / Contribution Margin Ratio Company Beach Lake Mountain Valley Fixed Costs                          360,400.00                      232,000.00                          260,000.00                      11,700.00 Contribution Margin Ratio 40% 80% 50% 30% BEP (In $)                          901,000.00                      290,000.00                          520,000.00                      39,000.00 Lowest BEP (in $) is of Valley Company Answer 3. The low breakeven point of Valley Company is primaly caused by its low fixed costs.