Calculating cost volume profit elements The budgets of four companies yield the following information:
|
Company |
||||
|
Blue |
Red |
Green |
Yellow |
|
|
Sales revenue |
$ 960,000 |
$ (4) |
$ 770,000 |
$ (10) |
|
Variable costs |
(1) |
132,000 |
462,000 |
162,000 |
|
Fixed costs |
(2) |
145,000 |
220,000 |
(11) |
|
Operating income (loss) |
$ 32,000 |
$ (5) |
$ (7) |
$ 93,000 |
|
Units sold |
160,000 |
11,000 |
(8) |
(12) |
|
Contribution margin per unit |
$ 2.70 |
$ (6) |
$ 77.00 |
$ 16.00 |
|
Contribution margin ratio |
(3) |
0.70 |
(9) |
0.40 |
Requirements
1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.)
2. Z
3. What causes the low breakeven point?