Student Name:

Class:
Problem 18-02A
EDGE EQUIPMENT CO.
Break-even in sales units:
Fixed costs
Contribution margin per unit
Break-even point in units:
Break-even in sales dollars:
Fixed costs
Contribution margin ratio
Break-even point in sales dollars:

EDGE EQUIPMENT CO.

Contribution Margin Income Statement
(at Break-Even) Product XT
Sales
Variable costs
Contribution margin
Fixed costs
Net income

Given Data P18-02A:

EDGE EQUIPMENT CO.
Selling price per 100 yards
Fixed costs
Maximum capacity in yards
Forecasted variable costs per 100 yards
Check figures:
(1) Break-even sales units

$
$
$

150
200,000
550,000
100

4,000

Student Name:
Class:
Problem 18-06A
CAIRO COMPANY
Computation of Break-Even
New variable costs and expenses for both Plans:
Materials costs
Direct labor cost
Overhead variable costs
Selling and admin. costs
Total variable costs
Plan 1:
Selling price
Contribution margin
Contribution margin ratio
Total fixed costs
Break-even (dollars)
Plan 2:
Selling price
Contribution margin
Contribution margin ratio
Total fixed costs
Break-even (dollars)

CAIRO COMPANY
Forecasted Contribution Margin Income Statement
Plan 1

Per Unit
Sales
Variable costs
Contribution margin
Fixed costs
Income before taxes
Income taxes
Net income

Plan 2
Total
Units

Per Unit

Total
Units

Given Data P18-06A:

CAIRO COMPANY
Units sold
Price per unit
Fixed manufacturing costs
Fixed selling and admin. expenses
Variable costs per unit:
Material
Direct labor
Variable overhead costs
Variable selling and admin. expenses
Cost decreases using new material:
Material costs
Direct labor costs
Factory capacity in units
Plan 1:
Price and sales levels do not change
Plan 2:
Price increase
Unit sales volume decrease
Income tax rate
Check figure:
(1) Break-even: Plan 1
Break-even: Plan 2
(2) Net income: Plan 1
Net income: Plan 2

$
$
$

35,000
16
120,000
180,000

$
$
$
$

4.00
3.00
0.40
0.20
60%
40%
40,000

25%
10%
30%

$
$
$
$

400,000
375,000
84,000
142,800