Submitted by: Submitted by lovesa
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Pages: 5
Category: Business and Industry
Date Submitted: 11/22/2012 08:18 PM
Income Statement for the Year Ended 2003 |
|
| Price | Units | Per unit price | % |
Sales | 8583000 | 5341 | 1607 | 100 |
Variable Expenses | 4755000 | 5341 | 890.3 | 0.55 |
Contribution margin | 3828000 | 5341 | 716.7 | 0.45 |
Fixed cost | 3250000 | | | |
Net Income | 578000 | | | |
Question No 1
Break Even Point in Units of year 2003 |
Fixed Cost/ C.M per Unit | Break Even Point |
3250000/717 | 4533 |
Break Even Point in Dollars of year 2003 |
Fixed Cost/C.M Ratio | Break Even Point |
3250000/0.45 | 7222222 |
Margin of Safety of year 2003 |
Sales - Break Even Point | Margin of Safety |
8583000 - 7222222 | 1360778 |
Income Statement for the Year Ended 2004 |
|
| Price | Units | Per unit price | % |
Sales | 8102000 | 5316 | 1524 | 100 |
Variable Expenses | 4537000 | 5316 | 853.5 | 0.56 |
Contribution margin | 3565000 | 5316 | 670.6 | 0.44 |
Fixed cost | 3353000 | | | |
Net Income | 212000 | | | |
Break Even Point in Units of year 2004 |
Fixed Cost/ C.M Per Unit | Break Even Point |
3353000/671 | 4997 |
Break Even Point in Dollars of year 2004 |
Fixed Cost/C.M Ratio | Break Even Point |
3353000/.44 | 7620455 |
Margin of Safety of year 2004 |
Sales - Break Even Point | Margin of Safety |
8102000 - 7620455 | 481545 |
Income Statement for the Year Ended 2005 |
|
| Price | Units | Per unit price | % |
Sales | 10711000 | 6897 | 1553 | 100 |
Variable Expenses | 6106000 | 6897 | 885.3 | 0.57 |
Contribution margin | 4605000 | 6897 | 667.7 | 0.43 |
Fixed cost | 5011000 | | | |
Net Income | -406000 | | | |
Break Even Point in Dollars of year 2005 |
Fixed Cost/C.M Ratio | Break Even Point |
5011000/.43 | 11653488 |
Break Even Point in Units of year 2005 |
Fixed Cost/C.M per Unit | Break Even Point |
5011000/668 | 7501 |
Margin of Safety of year 2005 |
Sales - Break Even Point | Margin of Safety |
10711000-11653488 | -942488 |
The...