- White Company Sells Flags With Team Logos White Has Fixed Costs Of 639 600 Per Year Plus Variable Costs Of 4 20 Per F 1 (44.11 KiB) Viewed 10 times
Requirement 3. Prepare White's contribution margin income statement for the year ended December 31, for sales of 73,000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a minus sign for an operating loss.) White Company Contribution Margin Income Statement Year Ended December 31, 20XX Operating Income (Loss) Requirement 4. The company is considering an expansion that will increase fixed costs by 23% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) (Use the equation approach.) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. Target profit Rearrange the formula you determined above and compute the required number of flags to break even under the expansion plan. Under the expansion plan, the breakeven point in units would be flags. Under the expansion plan, the breakeven point in dollars would be
Requirement 4. The company is considering an expansion that will increase fixed costs by 23% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) (Use the equation approach.) Begin by selecting the formula to compute the required sales in units to break even under the expansion plan. Target profit Rearrange the formula you determined above and compute the required number of flags to break even under the expansion plan. Under the expansion plan, the breakeven point in units would be flags. Under the expansion plan, the breakeven point in dollars would be Should White undertake the expansion? Give your reasoning. White should only undertake the expansion if expected profits from the expansion the expected costs.
Requirements 1. Use the equation approach to compute the number of flags White must sell each year to break even. 2. Use the contribution margin ratio approach to compute the dollar sales White needs to earn $32,500 in operating income for the year. (Round the contribution margin ratio to two decimal places.) 3. Prepare White's contribution margin income statement for the year ended December 31, for sales of 73,000 flags. (Round your final answers up to the next whole number.) 4. The company is considering an expansion that will increase fixed costs by 23% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should White undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.) Print - X Done