Aerotek Apparel Company Aerotek Apparel Company produces clothing and accessories, with a specialty in discount...
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Accounting
Aerotek Apparel Company Aerotek Apparel Company produces clothing and accessories, with a specialty in discount leather wallets and sells them to retailers who sell them directly to consumers.
PLEASE MAKE A PROPOSAL THAT WHAT FORMULAS ARE USED AND MAKE MEMORANDUM OF BELOW PART IN A DETAIL WAY.
Q1-A
Aerotek Apparel Company
CVP Income Statement
For the Year Ended December 30, 2019
Total
Per unit
Sales (295,000 pieces)
$ 23,60,000
$ 8.00
Variable cost
$ 14,08,625
$ 4.78
Contribution Margin
$ 9,51,375
$ 3.225
Fixed costs
$ 9,50,000
Net income
$ 1,375
Contribution Margin
3.225
Q1-B
Company Contribution Margine for the year 2019
Conribution Margine Ratio = Contribution / Sales x 100
Contribution
9,51,375
x 100
sales
23,60,000
Contribution Margin Ratio
40.31%
Q1-C
Break-even point in units
Unit per price
Variable cost
Fixed cost
=
0
8
$ 4.775
9,50,000
=
0
8
$ 4.775
=
9,50,000
3.225
=
9,50,000
Q
=
2,94,573.64
Break-even point
2,94,574
Answer & Explanation
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