Question : 3.Jasper Company makes two versions of one product, Standard and : 1416291

 

3.Jasper Company makes two versions of one product, Standard and Deluxe.  In November, sales of standard and Deluxe amount to $680,000 and $520,000, respectively.  The contribution margin ratio for Standard is 30% and Standard had direct fixed production and administrative costs of $125,000.  The contribution margin ratio for Deluxe was 40% and direct fixed costs were $160,000.  Common costs that couldn’t be allocated in a meaningful way were $100,000.

 

Prepare a segmented income statement for the month of November.

4.The following data relate to a year's budgeted activity for Jorgensen Corporation, a single product company:

 

Per Unit

Selling price$8.00

Variable manufacturing costs3.00

Variable selling costs2.00

Fixed manufacturing costs (based on 120,000 units).25

Fixed selling costs (based on 120,000 units).75

 

Total fixed costs remain unchanged within the relevant range in which the company is currently operating.

 

a.What is the projected annual break-even sales in units?

b.What dollar amount of sales would Jorgenson need to achieve operating income of $30,000?

c.If fixed costs increased $7,500, how many more units must be sold to break even?

5.A traditional break-even chart is illustrated below:

Identify each letter on the above chart, using the proper terminology.