Part B: Cost-Volume-Profit Analysis Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales................................... 0,000 Variable expenses.............. 360,000 Contribution margin .......... 180,000 Fixed expenses .................. 120,000 Net operating income ........ $ 60,000 The company produced and sold 120,000 kilograms of product during the month.

There were no beginning or ending inventories. Questions: A. Given the present situation, compute 1) The break-even sales in kilograms. 2) The break-even sales in dollars. 3) The sales in kilograms that would be required to produce net operating income of ,000.

4) The margin of safety in dollars. B. An important part of processing is performed by a machine that is currently being leased for ,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay

Part B Cost Volume Profit Analysisbelli Pitt Inc Produces A Single

Part B: Cost-Volume-Profit Analysis Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales................................... $540,000 Variable expenses.............. 360,000 Contribution margin .......... 180,000 Fixed expenses .................. 120,000 Net operating income ........ $ 60,000 The company produced and sold 120,000 kilograms of product during the month.

There were no beginning or ending inventories. Questions: A. Given the present situation, compute 1) The break-even sales in kilograms. 2) The break-even sales in dollars. 3) The sales in kilograms that would be required to produce net operating income of $90,000.

4) The margin of safety in dollars. B. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease. 1) Should the company choose the lease or the royalty plan?

2) Under the royalty plan compute break-even point in kilograms. 3) Under the royalty plan compute break-even point in dollars. 4) Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000. Part B: Cost - Volume - Profit Analysis Belli - Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales................................... $540,000 Variable expenses..............

360,000 Contribution margin .......... 180,000 Fixed expenses .................. 120,000 Net operating income ........ $ 60,000 The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. Questions : A.

Given the p resent situation, compute 1) The break - even sales in kilograms. 2) The break - even sales in dollars. 3) The sales in kilograms that would be required to produce net operating income of $90,000. 4) The margin of safety in dollars. B.

An important part of pro cessing is performed by a machine that is currently being leased for $20,000 per month. Belli - Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease. 1) Should the company choose the lease or the royalty plan? 2) Under the royalty plan compute break - even point in kilograms. 3) Under the royalty plan compute break - even point in dollars.

4) Under the royalty plan determine the sales in kilograms that would be required to prod uce net operating income of $90,000. Part B: Cost-Volume-Profit Analysis Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales................................... $540,000 Variable expenses.............. 360,000 Contribution margin .......... 180,000 Fixed expenses ..................

120,000 Net operating income ........ $ 60,000 The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. Questions: A. Given the present situation, compute 1) The break-even sales in kilograms. 2) The break-even sales in dollars.

3) The sales in kilograms that would be required to produce net operating income of $90,000. 4) The margin of safety in dollars. B. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease.

1) Should the company choose the lease or the royalty plan? 2) Under the royalty plan compute break-even point in kilograms. 3) Under the royalty plan compute break-even point in dollars. 4) Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000.