This document includes ACC 206 Week 4 Assignment E 19-19 Dependable Drivers Driving School P19-24A Kincaid Company<\/b><\/p>\n
Required Readings<\/p>\n
a. Chapter 19, E 19-19 <\/p>\n
b. Chapter 19, P 19-24A<\/p>\n
E19-19 Impact on breakeven point if sale price, variable costs, and fixed costs change [15 min]<\/p>\n
Dependable Drivers Driving School charges $250 per student to prepare and administer written and driving tests. Variable costs of $100 per student include trainers\u2019 wages, study materials, and gasoline. Annual fixed costs of $75,000 include the training facility and fleet of cars.<\/p>\n
Requirements<\/p>\n
1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided:<\/p>\n
a. Breakeven point with no change in information.<\/p>\n
b. Decrease sales price to $220 per student.<\/p>\n
c. Decrease variable costs to $50 per student.<\/p>\n
d. Decrease fixed costs to $60,000.<\/p>\n
2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units.<\/p>\n
P19-24A Analyzing CVP relationships [30\u201345 min]<\/p>\n
Kincaid Company sells flags with team logos. Kincaid has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00.<\/p>\n
Requirements<\/p>\n
1. Use the income statement equation approach to compute the number of flags Kincaid must sell each year to break even.<\/p>\n
2. Use the contribution margin ratio CVP formula to compute the dollar sales Kincaid needs to earn $33,000 in operating income for 2012. (Round the contribution margin to two decimal places.)<\/p>\n
3. Prepare Kincaid’s contribution margin income statement for the year ended December 31, 2012, for sales of 72,000 flags. Cost of goods sold is 70% of variable costs. Operating costs make up the rest of variable costs and all of fixed costs. (Round your final answers to the nearest whole number.)<\/p>\n
4. The company is considering an expansion that will increase fixed costs by 21% and variable costs by $0.60 per flag. Compute the new breakeven point in units and in dollars. Should Kincaid undertake the expansion? Give your reasoning. Round your final answers to the nearest whole number.<\/p>\n","protected":false},"excerpt":{"rendered":"
This document includes ACC 206 Week 4 Assignment E 19-19 Dependable Drivers Driving School P19-24A Kincaid Company Required Readings a. Chapter 19, E 19-19 b. Chapter 19, P 19-24A E19-19 Impact on breakeven point if sale price, variable costs, and Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49492","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49492"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49492\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}