## 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($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 | ||||

#### Similar Solved Questions

1 answer

##### Demand for a particular good is given by the following equation: P=240-4Q. What is the price...

Demand for a particular good is given by the following equation: P=240-4Q. What is the price elasticity of demand at the point (Q=20, P=160)?...

1 answer

##### Can you please show all work/steps on how to solve this problem? The correct answers are...

Can you please show all work/steps on how to solve this problem? The correct answers are included in the screenshot. X Instructor-created question Question is graded. Grade: 0 of 1 pt Submit Grade Question Help A sailboat costs $21,455. You pay 15% down and amortize the rest with equal monthly paym...

1 answer

##### Question#1: Based on the aggregate production function: GDP = FT (L, K, H) a. Imagine that...

Question#1: Based on the aggregate production function: GDP = FT (L, K, H) a. Imagine that the amount of capital K increases by 10% (from 50 to 55 units) while labour and technology stay the same. How much does total GDP and GDP per worker change by? (A specific percentage is not needed, just &lsquo...

1 answer

##### Continuation of the question:- From origin 2 to Destination 4 = 4 Solve the problem using...

continuation of the question:- From origin 2 to Destination 4 = 4 Solve the problem using transportation method and determine the total transportation costs associated with the optimal schedule. 04. A supplied to four markets C. D, E, and F. the manufacturer wants to know the pattern shipment from e...

1 answer

##### Stockholders' equity of Ernst Company consists of 87,000 shares of $5 par value, 11% cumulative prefe...

Stockholders' equity of Ernst Company consists of 87,000 shares of $5 par value, 11% cumulative prefe of $1 par value common stock. Both classes of stock have been outstanding since the company's ince dividends in the prior year, but it now declares and pays a $160,000 cash dividend at the c...

1 answer

##### Save Homework: Portfolio_Assignment3 - .lso of 35 (2 1 completer HW Score: 49.19%, 17.22 of 35...

Save Homework: Portfolio_Assignment3 - .lso of 35 (2 1 completer HW Score: 49.19%, 17.22 of 35 pts Score: 0 of 1 pt EQuestion Help 3.3.16 Use z scores to compare the given values In a recent awards ceremony, the age of the winner for best actor was 33 and the age of the winner for best actress was 4...

1 answer

##### Open, closed / (continental europe and asia), (the united states,england, and canada )/ true or false...

open, closed / (continental europe and asia), (the united states,england, and canada )/ true or false 8. Domestic versus international firms When the distribution of a corporation's stock is described as individual and institutional investors. This pattern is frequenti it means that the firm...

1 answer

##### 4. Expected dividends as a basis for stock values The following graph shows the value of...

4. Expected dividends as a basis for stock values The following graph shows the value of a stock’s dividends over time. The stock’s current dividend is $1.00 per share, and dividends are expected to grow at a constant rate of 4.50% per year. The intrinsic value of a stock should equal th...

1 answer

##### Current Attempt in Progress Oriole Co. has the following transactions related to notes receivable during the...

Current Attempt in Progress Oriole Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $54,600 cash to C. Bohr on a 12-month, 7% note. Dec. 11 Sold goods to K. R...

1 answer

##### The lexer is described as what type of algoritm 1 greedy algoritm 2 selfish 3 abusive...

the lexer is described as what type of algoritm 1 greedy algoritm 2 selfish 3 abusive 4 aggresive...

1 answer

##### Let me know if you need any values (Review Topics References Use the References to access...

let me know if you need any values (Review Topics References Use the References to access important values if needed for this question. For each of the salts on the left, match the salts on the right that can be compared directly, using K, values, to estimate solubilities (If more than one salt o...

1 answer

##### Identify an aspect of the health care payment system.

Identify an aspect of the health care payment system....

1 answer

##### Draw motion diagrams for both motions. Describe the motion of the pucks in the following strobe...

Draw motion diagrams for both motions. Describe the motion of the pucks in the following strobe photographs. Assume the pucks move from left to right and do not retrace their paths. O O OO o Where does the ball shown in the following strobe cda...

1 answer

##### College algebra 5th edition

Let x be the angle (in degrees) at which a baseball is hitwith no spin at an initial speed of 40meters per second and letd(x) be the distance (in meters) the balltravels. the table showsthe distances for the different angles at which the ball ishit.x10153036424445485460d(x)58.379.7126.9136.6140.6140...

1 answer

##### 1. Graph the following functions indicate the asymptote in order to receive full credit) a. y=-e*...

1. Graph the following functions indicate the asymptote in order to receive full credit) a. y=-e* +5 b. y=-(4/5)* +3...

1 answer

##### < 4 of Review I Constants I Periodic Given the following thermodynamic data, calculate the lattice...

< 4 of Review I Constants I Periodic Given the following thermodynamic data, calculate the lattice energy of CaBr2 (s). Value (kJ/mol) Term AHCaBr2(s) -675 AH(Ca(g)) 179 AHvap Br2(1) AHbond Br2(g) 30.8 193 I(Ca) 590. I2(Ca) 1145 E(Br) -325 Note that the overall formation of gaseous bromine atoms ...

1 answer

##### Please answer all parts of this question and explain everything 5. How does the equilibrium constant...

please answer all parts of this question and explain everything 5. How does the equilibrium constant based on molar concentrations (Kc) differ from the thermodynamic Ką? Is Ka larger or smaller than Kc?...