please help Break-Even Analysis \& Margin of Safety P 6-B (with...

70.2K

Verified Solution

Question

Accounting

please help
image
Break-Even Analysis \& Margin of Safety P 6-B (with more than one product) The Medal Company make two products, Gold and Silver. Sales and cost data for these products follow. Fixed expenses, for the company, are $900,000. Required: 1) Using the above, complete the following: a) Prepare a contribution form income statement displaying dollar amounts and percentages for each product and the company as a whole. b) Compute the break-even point for the company. Calculate this company's margin safety both in dollars and as a percent. 2) Assume the company adds a third product, Bronze. Each Bronze will sell for $100 and variable expenses per unit will be $90. Sales are anticipated to be 20,000 units. Fixed costs will remain unchanged for the company. a) Prepare a contribution form income statement displaying dollar amounts and percentages for each product and the company as a whole. b) Compute the break-even point for the company. Calculate this company's margin safety both in dollars and as a percent. 3) Bronze has added sales to the company. Why has the break-even point increased with the addition of the new product

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students