Solved

Cost-Volume-Profit;volume Defined in Sales Dollars

Question 109

Essay

Cost-volume-profit;volume defined in sales dollars.An excerpt from the income statement of the Kingston Company follows.Fixed costs in Year 1 are $325,000.
Kingston Company
Income Statement
Year ended December 31,year 1
Cost-volume-profit;volume defined in sales dollars.An excerpt from the income statement of the Kingston Company follows.Fixed costs in Year 1 are $325,000. Kingston Company Income Statement Year ended December 31,year 1     Required: a.What percentage of sales revenue is variable cost? b.What is the break-even point in sales dollars for Kingston Company? c.If sales revenue falls to $2,900,000,what will be the estimated amount of profit? d.What amount of sales dollars produces a profit of $1,000,000? (Kingston Company;cost-volume-profit;volume defined in sales dollars. )
Required:
a.What percentage of sales revenue is variable cost?
b.What is the break-even point in sales dollars for Kingston Company?
c.If sales revenue falls to $2,900,000,what will be the estimated amount of profit?
d.What amount of sales dollars produces a profit of $1,000,000?
(Kingston Company;cost-volume-profit;volume defined in sales dollars. )

Correct Answer:

verifed

Verified

a.$1,925,000 - $325,000 = $1,600,000
$1,...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents