Please Answer Part B. I think my Answer for Part A is Correct ! Question 34 YUX

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Please Answer Part B. I think my Answer for Part A is Correct !

Question 34 YUX Corporation sells a single product for $60. Its management estimates the following revenues and costs for the year 2016: $45,000 45,000 30,000 30,000 $900,000 Selling expenses-variable 120,000 Selng expenses-fixed Net sales Direct materials Direct labour Manufacturing overhead-variable Manufacturing overhead-fixed 75,000 Administrative expenses-variable 45,000 Administrative expenses-fixed 45,000 (a) 2 Your answer has been saved and sent for grading. See Gradebook for score details Assuming fixed costs and net sales are spread evenly throughout the year, determine YUX's monthly break-even point in units and dollars. (Round answers to 0 decimal places, e.g. 5,275.) Monthly break-even in units Monthly break-even in dollars 15000 units 184615 Attempts: 1 of 1 used

Explanation / Answer

a) Monthly Breakeven: (Annual/12) in units = 3077/12 256 in $ = 184615/12 15385 Annual BEP: Contribution margin ratio = 585000/900000 = 0.65 Break even sales in $ = Fixed costs/contribution margin ratio 184615 Annual Break even in units = 184615/60 3077 Annual b) Contribution margin ratio (585000/900000) 65.00% (contribution/Sales) Annual margin of safety ratio = (900000-184615)/184615 387.50% (Actual sale - Break even sale)/Breakeven sale Annual Profit 465000 Calculation for annual profit: Net Sales 900000 Variable costs: DM 120000 DL 75000 VOH-mfg 45000 Selling exp 45000 Admn exp 30000 315000 Contribution margin 585000 Fixed costs: Mfg 45000 Selling exp 45000 Admn exp 30000 120000 Operating profit 465000

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