Product B Solar Panel Battery (SPB) Data for the Income Statement (SPB) The expected...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Product B Solar Panel Battery (SPB)
Data for the Income Statement (SPB)
The expected total sales for this product for the year end 30 June 2022 are $16,000,000 and the expected total costs and operating expenses are $10,400,000. The costs will be allocated as follows:
Table B-1
Cost/Expense item
Amount ($)
Cost of goods sold
4,700,000
Sales Salaries expense
750,000
Office Salaries expense
600,000
Advertising expense
850,000
Office supplies expense
528,000
Rent expense
980,000
Insurance expense
390,000
Utilities expense
490,000
Depreciation expense
282,000
Interest expense
380,000
Tax expense
450,000
Total
10,400,000
Cost-Volume-Profit (CVP)
This section relates to Table B-1. Each solar panel battery sells for $12,500 and the variable cost per battery is $4,922. Variable costs include sales salaries, advertising and cost of goods sold. All other costs are fixed costs and they totalled $4,100,000.
Determine:
the contribution margin (CM)
the break-even point (BEP)
the sales units required to achieve a profit $7,000,000
Where applicable, round your answers to the nearest whole number.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
