University Of Pennsylvania Operations And Supply Chain Management Assignment Help - accounting help
Question - I also need help with this excersize
Cost-Volume-Profit Elements and Relationships
Your best friend just received a gift of $7,000 from his favorite aunt. He wants to save the money to
use as "starter" money after college. He can invest it (1) risk-free at 6%, (2) taking on moderate risk at
8%, or (3) taking on high risk at 14%.
Help your friend project the investment's worth at the end of four years under each investment
strategy and explain the results to him.
Submission Requirements:
Complete your work in an MS Excel worksheet
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960000 770000 132000 462000 162000 145000 220000 32000 93000 160000 11000 2.7 77 16 0.7
0.4 The budgets of four companies yield the following information: Sales revenue Fixed costs
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Operating income (loss) Units sold Contribution margin per unit Contribution margin ratio Blue Red
Green Yellow Company Variable costs (1) (2) (3) $(5) $(6) $(7) (8) (9) (12) (11) $(10) Requirements:
1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest
cent.) 2. Which company has the lowest break-even point in sales dollars? 3. What causes the low
break-even point? $(4) Kincaid Company sells flags with team logos. Kincaid has fixed costs of
$583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. 1. Use the income
statement equation approach to compute the number of flags Kincaid must sell each year to break
even. 3. Prepare Kincaid's contribution margin income statement for the year ended December 31,
2012, for sales of 72,000 flags. Cost of goods sold is 70% of variable costs. Operating costs make up
the rest of variable costs and all of fixed costs. (Round your final answers to the nearest whole
number.) 4. The company is considering an expansion that will increase fixed costs by 21% and
variable costs by $0.60 per flag. Compute the new break-even point in units and in dollars. Should
Kincaid undertake the expansion? Give your reasoning. Round your final answers to the nearest
whole number. 2. Use the contribution margin ratio CVP formula to compute the dollar sales Kincaid
needs to earn $33,000 in operating income for 2012. (Round the contribution margin to two decimal
places.) ...Read Less
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