PART A-15 marks Newton Cellular manufactures and sells the Top Line cellphone. For the year 2022 Newton has estimated th

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Part A 15 Marks Newton Cellular Manufactures And Sells The Top Line Cellphone For The Year 2022 Newton Has Estimated Th 1 (26.18 KiB) Viewed 61 times

PART A-15 marks Newton Cellular manufactures and sells the Top Line cellphone. For the year 2022 Newton has estimated the following: Contribute margin perhe 5300 Variable cost per cell phone $450 Annual fixed costs. Total $180,000 Netloss (54001 Required: a. Prepare a projected contribution type income statement based on the 2022 estimates Newton Cellular Projected Income Statement for year ending Dec 31,2002 a) Compute the break-even in units and in sales dollars for 2022. b) How many units is Newton planning to sell in 2022? c) How many additional units must be sold in 2022 to break-even? d) How many units need to be sold to carn $100.000 before tax? Part B - 15 marks Given: Variable costas a % of sales70% Annual fixed costs. Total $600,000 a) What is the contribution margin ratio? b) What is the break-even point in sales dollars? c) If the company is operating at a S100,000 loss what are the dollar sales? d) If the company is operating at a S100,000 profit what are the dollar sales?