The budgets of four companies yield the following information: (Click the icon to view the...
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Accounting
The budgets of four companies yield the following information: (Click the icon to view the budget information for the four companies.) Requirements 1. Fill in the blanks for each company. 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Company R S T $ Target sales.. Variable expenses 625,000 $450,000 $ 224,000. 125,000 198,000 $ 153,000 $ 93,000 Fixed expenses $ Operating income (loss) ..... 130,000 $ 133,000 Units sold 120,000 12,500 16,500 Contribution margin per unit . . . $ 6.25 8.96 $ 38.00 Contribution margin ratio 0.60 Requirement 1. Fill in the blanks for each company. (Round the contribution margin per unit and ratio calculations to two decimal places.) R S T Target sales.. $ 625,000 $ 450,000 $ 224,000 Variable expenses. 125,000 198,000 153,000 93,000 Fixed expenses. $ 130,000 133,000 Operating income (loss) Units sold. . . . . 120,000 12,500 16,500 Contribution margin per unit $ 6.25 $ 8.96 $ 38.00 Contribution margin ratio. . . 0.60 Requirement 2. Compute breakeven, in sales dollars, for each company. Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? Begin by determining the formula, then compute the break even sales for each company one at a time. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Q ( O RS- + + + T + = = Breakeven sales Which company has the lowest breakeven point in sales dollars? What causes the low breakeven point? has the lowest breakeven point, primarily due to
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