Assume that a company has forecasted 5,800 units sold, has an average selling price of...
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Accounting
Assume that a company has forecasted 5,800 units sold, has an average selling price of $25.00 per unit, unit variable cost of $10.00 per unit, and a total fixed cost equal to $84,000. Using the template provided, perform the following analyses:
a. Create a Contribution-format Income Statement based on the forecasted data
b. Create a Contribution-format Income Statement based on the Break-even Sales Volume
c. Create a Contribution-format Income Statement based on a target profit equal to $6,000
INCOME STATEMENTS
Forecast
Break-even
Target Profit
Total
Per Unit
%
Total
Per Unit
%
Total
Per Unit
%
Number of units sold
Price/Revenues
Variable Cost
Contribution Margin
Total Fixed Cost
Operating Profit
Operating Profit %
Answer & Explanation
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