EXERCISE 6-17 (30 MINUTES)

Question

4. a. The break-even in dollar sales can be computed as follows: Fixed expenses $189,700 CM ratio = 0.542 = $350,000 b. May’s break-even point is higher than April’s. This is because the company’s overall CM ratio has gone down, i.e., the sales mix has shifted from the more profitable to the less profitable units. Case 6-31  (60 minutes)

Answer

b. May’s break-even point is higher than April’s. This is because the

EXERCISE 6-17 (30 MINUTES)

4. a. The break-even in dollar sales can be computed as follows:

Fixed expenses $189,700 CM ratio = 0.542 = $350,000

b. May’s break-even point is higher than April’s. This is because the

company’s overall CM ratio has gone down, i.e., the sales mix has

shifted from the more profitable to the less profitable units.

Case 6-31 (60 minutes)

Bạn đang xem 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH06 COST VOLUME PROFIT RELATIONSHIPS