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Requirement 1. Fill in the blanks for each missing value.

		Beach
	Sales revenue	$705,000
	Variable costs
	Fixed costs
	Operating income (loss)	$11,900
	Units sold	190,000
	Contribution margin per unit	$1.41
	Contribution margin ratio

Lake
150,100
123,000
10,000
0.21

Mountain
$600,000
288,000
137,000
$97.50

Valley
156,000
$34,000
$12.00
0.20

Requirement 2. Calculate the breakeven point in sales dollars for each company.

Begin by calculating the breakeven sales dollars for company

BeachBeach.

(Round your answers to the nearest whole dollar.)

Breakeven sales in dollars - Beach

Calculate the breakeven sales dollars for company

LakeLake.

(Round your answers to the nearest whole dollar.)

Breakeven sales in dollars - Lake

Calculate the breakeven sales dollars for company

MountainMountain.

(Round your answers to the nearest whole dollar.)

Breakeven sales in dollars - Mountain

Calculate the breakeven sales dollars for company

ValleyValley.

(Round your answers to the nearest whole dollar.)

Breakeven sales in dollars - Valley

Requirements 2. and 3. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point?

Company Beach

Company Lake

Company Mountain

Company Valley

has the lowest breakeven point, primarily due to

its high fixed costs

its low fixed costs

its high sales price

	Company
	Beach	Lake	Mountain	Valley
Sales revenue	$705,000	($4)	$600,000	($10)
Variable costs	-1	150,100	288,000	156,000
Fixed costs	-2	123,000	137,000	-11
Operating income (loss)	$11,900	($5)	($7)	$34,000
Units sold	190,000	10,000	-8	-12
Contribution margin per unit	$1.41	($6)	$97.50	$12.00
Contribution margin ratio	-3	0.21	-9	0.2

.

Enter any number in the edit fields and then continue to the next question.

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