Current Attempt in Progress Midlands Inchadabad year in 2019. For the first time in its history it operated atas. The company's income statement showed the following results from selling 80.000 units of product net sales $2.000.000 total costs and expenses $2.210.000 und netloss 5210,000 costs and openses consisted of the following Cost of goods sold Segons Administrative per Total Variable Fleed $1542,000 $1.051.000 5492.000 522.000 93000 144000 54.000 $2210000 $1200.000 $100.000 90.000 Management is considering the following independent atives for 2020 1 oran g e 20 with no change in condens 2. Change the compensation of s ons from fou rsong 200 000 ton s of $42.000 plus comm on 3 Purchase with actory machinery that will change the proportione n variable and food cost of goods sold to 50:50 porn dollars for 2019. Round contribution mari Computer 2.5103 decid e 02517 and lawwer to decid e b r ea s on for 2000 conto del places Type here to search OPERE

Name: Techwhiff
Address: 1520 Lavalette Ave, Elkins, WV 26241, USA, Elkins, 26241, US
Telephone: +1 681-298-8325
Price range: 10000

Ans 1) Midland Inc. Ratio Amount Sales=(A) $ 20,00,000.00 100% Variable Expenses=(B) $ 12,00,000.00 60.00% Contribution Margin=(C )=(A)-(B) $ 8,00,000.00 40.00% Fixed Expenses=(D) $ 10,10,000.00 Net Operating Income=(C )-(D) $ -2,10,000.00 Contribution Margin=Sales-Variable Cost Break even Point in dollars=Fixed Cost/Contribution Margin Ratio Contribution Margin Ratio=(Contribution Margin/Sales)*100 Fixed Cost=(A) $ 10,10,000.00 Contribution Margin Ratio=(B) 40.00% Break even Point=(A)/(B) $ 25,25,000.00 Ratio Ans 2(a) Change selling Price($2000000*1.20) $ 24,00,000.00 100% Variable Expenses $ 12,00,000.00 $ 0.50 Contribution Margin $ 12,00,000.00 $ 0.50 Fixed Cost=(A) $ 10,10,000.00 Contribution Margin Ratio=(B) $ 0.50 Break even Point=(A)/(B) $ 20,20,000.00 b) Change in Variable cost Variable cost (Present) $ 12,00,000.00 Add: Commission($2000000*5%) $ 1,00,000.00 New Variable cost $ 13,00,000.00 Fixed Cost(Present) $ 10,10,000.00 Less: $ -2,05,000.00 Add: $ 42,000.00 New Fixed Cost $ 8,47,000.00 Ratio Selling Price=(A) $ 20,00,000.00 100.00% New Variable Expenses=(B) $ 13,00,000.00 65.00% Contribution Margin=(A)-(B) $ 7,00,000.00 35.00% Fixed Cost=(A) $ 8,47,000.00 Contribution Margin Ratio=(B) 35.00% Break even Point=(A)/(B) $ 24,20,000.00 c) Total Variable Fixed Cost of goods sold(50:50) ratio variable and Fixed($1542000*50%) variable,($1542000*50%) Fixed $ 15,42,000.00 $ 7,71,000.00 $ 7,71,000.00 Selling Expenses $ 5,22,000.00 $ 93,000.00 $ 4,29,000.00 Administrative Expenses $ 1,46,000.00 $ 56,000.00 $ 90,000.00 Total $ 22,10,000.00 $ 9,20,000.00 $ 12,90,000.00 Net Loss $ -2,10,000.00 Ratio Selling Price=(A) $ 20,00,000.00 100.00% New Variable Expenses=(B) $ 9,20,000.00 46.00% Contribution Margin=(A)-(B) $ 10,80,000.00 54.00% Fixed Cost=(A) $ 12,90,000.00 Contribution Margin Ratio=(B) 54.000% Break even Point=(A)/(B) $ 23,88,889 Break even Point 1) $ 20,20,000 2) $ 24,20,000 3) $ 23,88,889 .

Current Attempt in Progress Midlands Inchadabad year …

Answers

Ans 1)	Midland Inc.
			Ratio
		Amount
	Sales=(A)	$ 20,00,000.00	100%
	Variable Expenses=(B)	$ 12,00,000.00	60.00%
	Contribution Margin=(C )=(A)-(B)	$ 8,00,000.00	40.00%
	Fixed Expenses=(D)	$ 10,10,000.00
	Net Operating Income=(C )-(D)	$ -2,10,000.00

	Contribution Margin=Sales-Variable Cost
	Break even Point in dollars=Fixed Cost/Contribution Margin Ratio
	Contribution Margin Ratio=(Contribution Margin/Sales)*100
	Fixed Cost=(A)	$ 10,10,000.00
	Contribution Margin Ratio=(B)	40.00%
	Break even Point=(A)/(B)	$ 25,25,000.00

			Ratio
Ans 2(a)	Change selling Price($2000000*1.20)	$ 24,00,000.00	100%
	Variable Expenses	$ 12,00,000.00	$ 0.50
	Contribution Margin	$ 12,00,000.00	$ 0.50

	Fixed Cost=(A)	$ 10,10,000.00
	Contribution Margin Ratio=(B)	$ 0.50
	Break even Point=(A)/(B)	$ 20,20,000.00

b)	Change in Variable cost
	Variable cost (Present)	$ 12,00,000.00
	Add: Commission($2000000*5%)	$ 1,00,000.00
	New Variable cost	$ 13,00,000.00

	Fixed Cost(Present)	$ 10,10,000.00
	Less:	$ -2,05,000.00
	Add:	$ 42,000.00
	New Fixed Cost	$ 8,47,000.00


			Ratio
	Selling Price=(A)	$ 20,00,000.00	100.00%
	New Variable Expenses=(B)	$ 13,00,000.00	65.00%
	Contribution Margin=(A)-(B)	$ 7,00,000.00	35.00%

	Fixed Cost=(A)	$ 8,47,000.00
	Contribution Margin Ratio=(B)	35.00%
	Break even Point=(A)/(B)	$ 24,20,000.00

c)		Total	Variable	Fixed
	Cost of goods sold(50:50) ratio variable and Fixed($154200050%) variable,($154200050%) Fixed	$ 15,42,000.00	$ 7,71,000.00	$ 7,71,000.00
	Selling Expenses	$ 5,22,000.00	$ 93,000.00	$ 4,29,000.00
	Administrative Expenses	$ 1,46,000.00	$ 56,000.00	$ 90,000.00
	Total	$ 22,10,000.00	$ 9,20,000.00	$ 12,90,000.00
	Net Loss	$ -2,10,000.00

			Ratio
	Selling Price=(A)	$ 20,00,000.00	100.00%
	New Variable Expenses=(B)	$ 9,20,000.00	46.00%
	Contribution Margin=(A)-(B)	$ 10,80,000.00	54.00%

	Fixed Cost=(A)	$ 12,90,000.00
	Contribution Margin Ratio=(B)	54.000%
	Break even Point=(A)/(B)	$ 23,88,889

		Break even Point
	1)	$ 20,20,000
	2)	$ 24,20,000
	3)	$ 23,88,889

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