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HANDOUT 2- COST-VOLUME-PROFIT ANALYSIS THIS HANDOUT CONSISTS OF PARTS A AND B PART A...

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Accounting

HANDOUT 2- COST-VOLUME-PROFIT ANALYSIS
THIS HANDOUT CONSISTS OF PARTS A AND B
PART A
McKeever Sports sells decals that can be personalized with a player's name, a team name, and a jersey number for $6 each. The company buys the licensed decals from a supplier for $1.50 each and spends an additional $1.00 in variable operating expenses per decal (the remaining amount of operating expenses are considered fixed). The results of last month's operations are as follows - based on sales of 1,500 decals:
\table[[DESCRIPTION,AMOUNT,QUESTION,ANSWER],[Sales Revenue,$9,000,What is the Variable Cost Per Unit?,],[Cost of Goods Sold,$2,250,],[Gross Profit,$6,750,],[Operating Expenses,$3,250,What are the Total Fixed Costs?,],[Operating Income,$3,500,]]
\table[[USING THE INFORMATION PROVIDED, COMPLETE THE CVP ANALYSIS FOR MCKEEVER SPORTS],[DESCRIPTION,AMOUNT,REQUIRED - SHOW WORK HERE],[,,],[BREAKEVEN,,],[UNITS,,],[,,],[BREAKEVEN IN,,],[SALES $ (USE CM,,],[RATIO%),,],[# OF UNITS TO,,],[REACH $12,250 OF,,],[DESIRED INCOME,,]]
ACCT 201| MANAGERIAL ACCOUNTING I
HANDOUT 2- CHAPTER 3| PAGE 1
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