Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the...
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Accounting
Picnic Time produces a picnic basket that is sold for $ per unit. Assume the company produced and sold baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow.
REQUIRED
a Prepare a contribution income statement for July.
b Determine the breakeven point in sales dollars.
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $ for $
c Suppose the cost of labor is expected to increase next year. How will this affect the
breakeven point?
Breakeven point will
d Determine July's margin of safety in sales dollars.
e What dollar sales volume is currently required to obtain a beforetax profit of $
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $ for $
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