Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, whichsell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows:Sales revenueVariable expensesContribution marginFixed expensesOperating income$944,720708,540236,180123,620$112,560 (b)What is Blossom's monthly breakeven point in units?Breakeven point(c)eTextbook and MediaSave for LaterWhat is Blossom's contribution margin ratio?Contribution margin ratio(d)eTextbook and MediaSave for LaterWhat is Blossom's monthly breakeven point in sales dollars?Breakeven sales$eTextbook and MediaSave for Latercakes%AttAttempt

Break-even units represent the number of units sold to cover the costs like variable and fixed. When…

Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $944,720 708,540 236,180 123,620 $112,560

Sarah Allen owns and operates Blossom, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $944,720 708,540 236,180 123,620 $112,560

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Matamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax
4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
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