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132 briefly describe a cvp chart including its major components 133 describe how a 4299408

 

132. Briefly describe a CVP chart, including its major components. 

133. Describe how a cost-volume-profit analysis would be performed for a company that sells more than one product. (Assume that the sales mix is known.) 

Essay Questions

134. A company has a goal of earning $100,000 in after-tax income. The company must pay $28,000 in income tax if it achieves the goal. The contribution margin ratio is 30%. What dollar amount of sales must be achieved to reach the goal if fixed costs are $64,000? 

135. A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company wishes to earn an after-tax income of $35,000. Assume that the company has a 30% tax rate. How many units must be sold to achieve this after-tax income level? 

136. Davison Company has fixed costs of $315,000 and a contribution margin ratio of 24%. If sales are expected to be $1,500,000, what is the percentage of the margin of safety? 

 

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