Homework #3

School: Washington State University - Course: FOR 3 - Subject: Accounting

The average costs to bake the croissants are $0.55 for 3,600 and $0.50 for 7,200. # of croissantsavg. costtotal cost 36000.551980 72000.53600 0.45 variable cost 360 fixed cost 6400 3240Cost per Hour0.625 0.50625(Variable) 1562.5

ParticularsAmountParticularsAmount Sales revenue3060000Sale Price85 less:variable cost1656000less:variable cost46 contribution margin1404000contribution margin39 less: fixed cost621500Annual fixed cost621500 Net operating income782500Break-even point15935.8974359 ParticularsAmount Sales revenue3468000Fixed Cost870100 less:variable cost1876800Contribution Margin39 contribution margin1591200Break-Even22,310 less: fixed cost870100 Net operating income721100 Original Fixed621500 Sales revenue1,896,350.00New Fixed870100 less:variable cost1,026,271.79Increase in Fixed248600 contribution margin870,078.21% of Increase in Fixed Cost40.00% less: fixed cost621,500.00 Additional fixed cost248,600.00870100 Old Break-even15936 Net operating income(21.79)New break-even22310 Increase in units6374 % of increase in unit40.00% Last Year Income782,500.00Direct Labor379270 Contribution Margin39.00Direct Materials457355 New Fixed Cost870,100.00Variable Overhead189635 Sales Level42,374.36Total1,026,260.00